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Product Management

Basics of Product

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A product is anything that can be offered to a market

to satisfy a need or want.

Or

A product is anything which has the capability to satisfythe needs and wants of the customers or end users.

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Customer Value Hierarchy

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Product Levels

Level I: Core benefit Fundamental level, Little or no competition, The benefit

that customer is really buying.

Level II: Basic Product Includes basic necessities, emergence of differentials

and low level of competition. Level III: Expected Product

Includes a set of attributes that marketers normallyexpect, high competitive differentials.

Level IV: Augmented Product Delivering more than what customer expects, very high

level of competition, possessing a edge in the market

Level V: Potential Product Ascertaining future needs and including all possible

augmentations for satisfying and retaining customers.

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Product Classifications

Durability and Tangibility Non-durable goods: Tangible, bought

frequently, shorter shelf life. Availability, lowmargins, heavy advertisement, induce trial.

Durable Goods: Tangible, bought occasionally,longer shelf life. Personal selling, service,higher margin, guarantees.

Services: Intangible, Inseparable, variable,

perishable. Quality control, supplier credibility.

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Product Classifications

Consumer Goods

Convenience Goods (frequently, immediately,minimum effort): Staples, Impulse, Emergency

goods Shopping Goods (Effects comparison, lengthy

decision making process): Homogeneous,Heterogeneous

Specialty Goods: Brand identities, usuallyhigh-priced / need-based goods.

Unsought Goods (no awareness): Needadvertising to spread awareness.

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Product Classifications

Industrial Goods Materials and Parts

Raw Material Farm products, Natural Products

Manufactured Material: Component materials,

Component parts. Capital Items

Installation Buildings, Heavy equipment

Equipment Factory Equipment, Office Equipment

Supplies and Business ServicesMaintenance and Repair

Operating Supplies

Intelligence and Consulting Services

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Product Differentiation

Form: Size, shape or physical structure

Features: Supplementing the basic function.Considering the value propositions

Performance Quality: Level at which the products

primary characteristics operate. Conformance Quality: In order to conform with

the Standard specifications

Durability: Expected operating life / shelf life

Reliability: Non-probability of functional risks Repairability: Re-Fixability during malfunction

Style: Look N Feel of the product.

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Product Mix / Assortment

Product Width: The many differentproduct lines the company carries, or thetotal number of lines Product mixes)

Product Length: Total number of items in

the mix (The sum of lengths of all lines). Product Depth: The many variants offered

in each product line. Product Consistency: The relationship

between the products in terms ofproduction and channel lines and endusers.

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Line-Length Strategies

Line Stretching

Down-market Stretching

Up-Market Stretching

Two-way Stretching

Line Filling: New segment, newproduct (just noticeable difference)

Line Modernization, featuring andpruning