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 What is a Product?
A
 is anything that can be offered to a
market to satisfy a want or need, including
physical goods, services, experiences, events,
persons, places, properties, organizations,
information, and ideas.
 Ashok
Leyland is
known for
its
products
pigure 12.1 Components of the
Market Offering
Value-based prices

Attractiveness
of the market
offering

Product Services
features mix and
and quality quality
pigure 12.2 pive Product Levels
 Product Classification Schemes

DURABILITY & TANGIBILITY

CONSUMER GOODS

INDUSTRIAL GOODS
Durability and Tangibility

Nondurable
goods

Durable
Services
goods
Consumer Goods Classification

Convenience Shopping

Specialty Unsought
Industrial Goods Classification

Materials and parts

Supplies/
Capital items
business services
 What is Differentiation?
m Ensuring that products and services have a
unique element to allow them to stand out
from the rest.
m In business terms, to differentiate means to
create a benefit that customers perceive as
being of greater value to them than what they
can get elsewhere.
 
 ,
focusing on
high-end
consumers,
differentiated
itself from
other mass
retail outlets.
 Product Differentiation
m Product form
m peatures
m Customization
m Performance
m Conformance
m Durability
m Reliability
m Repairability
m Style
Design Differentiation
 Service Differentiation
m Ordering ease
m Delivery
m Installation
m Customer training
m Customer consulting
m Maintenance and repair
m Returns
 Ginger Hotels
has carved a
profitable niche
through its
innovative
service
configuration
Developing products for rural markets
m Products should be designed keeping in mind the
rural conditions
m Packaging is one of the key drivers of success in
rural areas
Issue of transfer and storage: Rugged packing
The issue of affordability: small-unit packs
m Brand elements should be decided keeping in
mind rural consumers
 What is Positioning?

!!"!"# is the act of designing

the company͛s offering and image
to occupy a distinctive place in
the mind of the target market.
Positioning
of Café
Coffee Day
 CCD VS BARISTA
]]|  
m CCD Differentiated m BARISTA is
the brand by positioned as a
crafting a unique premium coffee
position in the retail outlet for
young consumers͛ the upwardly
mind. mobile executives.
 Value Propositions

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 %

  

A vehicle that provides

the luxury and comfort
Scorpio, SUV, Mahindra Lifestyle-Oriented of a car, and the
luxury & comfort
& Mahindra Consumers adventure and thrills of
an SUV (sport utility
vehicle-light trucks).

A good hot pizza,

delivered to your door
Convenience-minded Delivery, Speed, & good
Domino's, Pizza within 30 minutes of
pizza lovers quality
ordering, at a moderate
price.
 Defining Associations

!"&!&&"
!"&)!*
'
|( '

(
m Attributes or benefits r Associations that
consumers strongly
associate with a brand, are not necessarily
positively evaluate, and unique to the brand
believe they could not find
to the same extent with a but may be shared
competitive brand. with other brands.
m The brand must r There is a zone or
demonstrate clear
superiority. range of tolerance
or acceptance.
 EXAMPLES

|

%
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· APPLE (DESIGN) m %  (MOST
· NIKE WIDELY AVAILABLE
(PERpORMANCE) CARD) VERSUS
· LEXUS (QUALITY)  ]
+

(PRESTIGE)
 ]  

|
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m  

üCategory Points Of Parity
üCompetitive Points Of Parity
m  
-
üDesirability
üDelivery Capability
 POPs
]
 

  ]
  %
 


 
m They represent
m These are the
necessary ʹ but not
associations
sufficient-conditions
designed to negate
for brand choice.
competitors͛ POD.
m Example - Travel
m Example ʹ Dettol &
Agency
Savlon
] ?
? 

?


?

  

 ?
The products with
which a brand
competes & which
function as close
substitutes.

?


?
Conveying Category Membership

Announcing category benefits

Comparing to exemplars

Relying on the product

descriptor
Consumer Desirability Criteria for PODs

Relevance

Distinctiveness

Believability
Deliverability Criteria for PODs

peasibility

Communicability

Sustainability
Examples of Negatively Correlated Attributes or
Benefits

m Low-price vs. High m Powerful vs. Safe

quality m Strong vs. Refined
m Taste vs. Low m Ubiquitous vs.
calories Exclusive
m Nutritious vs. Good m Varied vs. Simple
tasting
m Efficacious vs. Mild
 pACTORS ʹ DIppERENTIATION
STRATEGY

m COMPETITIVE ADVANTAGE;
m LEVERAGEABLE ADVANTAGE; &
m CUSTOMER ADVANTAGE.
Differentiation Strategies

Product Personnel

Channel Image
 Product Differentiation
m Product form m Style
m peatures m Design
m Performance m Ordering ease
m Conformance m Delivery
m Durability m Installation
m Reliability m Customer training
m Reparability m Customer consulting
m Maintenance
Personnel Differentiation:
Singapore Airlines
Channel Differentiation:
Eureka porbes
Image Differentiation
„