What is a Product?

A Product 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.

Components of the Market Offering

Value-based prices

Attractiveness of the market offering Product features and quality Services mix and quality

Five Product Levels

The Core Product

Core Product:

What is the buyer really buying? .... Core benefits, Problem Solving services.
Examples:

Lipstick....... Beauty, Hope, not lip color In a hotel, customer is buying rest and sleep

Augmented Product
Consists of Additional Consumer Services and

Benefits....Augmented benefits may become expected benefits

Camcorder: Complete solution to picture-taking problems. Warranty on parts and workmanship, Instruction on how to use camcorder, Toll free number for questions and problems Hotel: Candy on hotel pillow, basket of fruit, manager escorts you to room, Pillbox, white uniforms, toiletries. Perfume: Fantasy, memories, hopes, dreams, life style, self-expression, exclusivity

Product Classification Schemes

DURABILITY & TANGIBILITY
CONSUMER GOODS INDUSTRIAL GOODS

Durability and Tangibility

Nondurable goods Durable goods

Services

Consumer Goods Classification

Convenience

Shopping

Specialty

Unsought

Industrial Goods Classification

MARKETING STRATEGY
Developing a vision about the market(s) of interest to the organization, selecting market target strategies, setting objectives, developing, implementing, and managing the marketing program positioning strategies designed to meet the value requirements of the customers in each market target .

The issues discussed in the area of differentiating and Positioning the market offering are:
Tools for Competitive Differentiation Developing a Positioning Strategy Communicating the Companys Positioning

What is Differentiation?
Ensuring that products and services have a unique element to allow them to stand out from the rest. 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.

Tools for Competitive Differentiation Differentiation - Definition: is the act of designing a set of meaningful differences to distinguish the company's offering from competitor's offerings. - It helps the firm fight on non price plank. - It can be achieved through difference in product, distribution methods ,promotion steps, plant location or after sales service. -Example Eureka Forbes used personal selling ; the sole way to reach its customer and built up distinction through it .Where as COKE & PEPSI differentiated through brand power ,Apple ,Microsoft are some more examples .

Five Dimensions of Differentiation

Regarding the tools of differentiation, five dimensions can be utilized to provide differentiation.

Product
Services that accomplish any marketing, sales and after sales services. Personnel that interact with the customer Channel

Image

Product Differentiation
Product form Features Customization Performance Conformance Durability Reliability Repairability Style

Differentiating a Product
Features Quality: performance and conformance Performance - the performance of the prototype or the exhibited sample, Conformance - The performance of every item made by the company under the same specification.

Durability/Reliability Product quality/service/technology Packaging Style Design

Design Differentiation

Developing products for rural markets

Products should be designed keeping in mind the rural conditions 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 Brand elements should be decided keeping in mind rural consumers

Services differentiation
Ordering ease Delivery Installation Customer training Customer consulting Miscellaneous services

Ginger Hotels has carved a profitable niche through its innovative service configuration

Personnel Differentiation

Competence Courtesy Credibility Reliability Responsiveness Communication

Personnel Differentiation: Singapore Airlines

Channel differentiation
Coverage Expertise of the channel managers Performance of the channel in ease of ordering, service and personnel

Channel Differentiation: Eureka Forbes

Image differentiation First distinction between Identity and Image - Identity is designed by the company and through its various actions company tries to make it known to the market. Image is the understanding and view of the market about the company. An effective image does three things for a product or company. 1. It establishes the product's planned character and value proposition. 2. It distinguishes the product from competing products. 3. It delivers emotional power and stirs the hearts as well as the minds of buyers. The identity of the company or product is communicated to the market by Symbols

Written and audiovisual media Atmosphere of the physical place with which customer comes into contact Events organized or sponsored by the company.

Image Differentiation