Group F: 6 - Prince Chandpillai 18 - Mandar Jadhav 30 - Rupen Momaya 42 - Swapnil Sawale 54 - Shailesh Waingankar

A Product is any offering by a company to a market that serves to satisfy customer needs and wants. A Product is anything offered for attention, acquisition, use or consumption that might satisfy a want. A Product is a bundle of satisfaction that customer buys. It represents solution to customers Problems. The term Product covers both goods & services. As Peter Drucker puts it, So long as a product is not brought and Consumed by customer, it still remains in a raw material or at intermediate level.

 Based on Customer Value, marketer needs to address 5 product

levels. Each level adds more cost but results in more Value addition for customer and More customer satisfaction. The levels are 1. Core benefit 2. Actual / Basic product 3. Expected product 4. Augmented product 5. Future / Potential product

1. Core benefit Communication 2. Actual / Basic product A mobile handset which serve the basic need should have attributes like keypad for dialing a phone number, a Color display to view the dial number, Microphone and speaker to send and receive the voice, phone book for storing the contacts. Also a Brand Name, Good packaging and reasonable price. 3. Expected product Customer expects all basic feature along with features like good stylish looks, Easy to Operate , Light weight , Good battery life, After Sale service.

4. Augmented product Extra features such as FM radio, Video camera, Voice Dialing, Touch screen, Dual sim, Accessibility of Internet , E-mail and social networking sites using 3G technology.
5. Future / Potential product Global Positioning system (GPS), Projector in mobile , Live TV on mobile etc.

Consumer Products

Industrial Products

Classify on the basis of consumers shopping habits

1. Convenience Goods 2. Shopping Goods 3. Specialty Goods 4. Unsought Goods

classified on their relative cost and how they enter into production systems

1. Raw Materials 2. Manufactured materials & parts 3. Capital Items

Non Durable Goods

Durable Goods
Lasts for a very long duration of time more personal selling

Services
Intangible, inseparable, variable and perishable products

Consumed only for short span of time. Purchased frequently so need to advertise heavily to build the preference

Require Good After

sales service.

requires more quality control, supplier credibility and adaptability

Business Services

 Product Need the core need that underlines the existence of a product family. Eg. Personal Care Product Family - All the product classes that can satisfy a core need with reasonable effectiveness. Product Class A group of products within the product family recognized as having a certain functional coherence. Also known as product category. Eg. Cosmetics, skin creams, shampoos, conditioners, soaps, etc.. Product Line A group of products within a product class that is closely related because they perform a similar function, are sold to the same customer groups Eg. Shampoos Product Type - A group of items within a product line that share one of several possible forms of the product Eg. Dandruff control shampoos. Product Brand - Clinic All Clear Item - a distinct unit within a brand or product line distinguishable by size, price, appearance, or some other attribute. A sachet of Clinic All Clear.

EXAMPLE OF HIERARCHY IN CLOTHING

The assortment of products that a company offers to a market.

Width how many different product lines?

Length the number of items in the product mix Depth The no. of variants offered in a product line Consistency how closely the product lines are related in usage

Cameras
Digital Camcorder Film

Printers
Small Format Large Format Production System

Projectors
Digital Slide

Solutions
Document Capture Document Management Personalized Image Printing

 Sales and Profit :Marketers have the need to know the current and potential sales and profits of each item in a line in order to determine which items to build, sustain, harvest, or divest. They need to analyze the effect of increasing the length. Can more profit be made by increasing the length? Companies seeking high market share and market growth will generally carry longer product lines Companies that emphasize high profitability will carry shorter lines consisting of carefully chosen items.
Market Profile

Line Stretching occurs when company lengthens its product line beyond its current range.

Down-Market Stretch Introducing lower range of products.

Up-Market Stretch Entering the higher end of market

Two way Stret ch By filling the whole line.

 A group of products having a certain functional coherence

Cameras
Digital

Specially designed to be an affordable yet powerful compact camera.

IXUS

Designed for the fashion-forward,

Allows you to upgrade your equipment to match your photographic progress.

 Long Term strategy

Pricing

Packaging

Brand & Marketing