1 Product Levels Marketers need to address the

1

� Product Levels: Marketers need to address the 5 product levels. � The 5 levels constitute customer –value hierarchy 2

Products classification on the basis of. . . Durability & Tangibility Usage (Consumer or Industrial) Consumer Use Convenience goods Shopping goods Speciality goods Unsought goods Non durable goods Durable goods Services Industrial Use Materials and parts Capital Items Supplies and business service 3

IDENTIFY. . 4

5

6

� Staples � Impulse � Emergency 7

� Homogeneous shopping goods � Heterogeneous shopping goods 8

� It has unique characteristics or brand identification. 9

� Consumers does not know about the product. � 10

� Product Differentiation: �Form �Features �Customization �Performance quality �Conformance Quality �Durability �Reliability �Reparability �Style 11

� Service Differentiation: �Ordering Ease �Delivery �Installation �Customer Training Customer consulting �Maintenance and Repair �Returns 12

� Product Hierarchy �Need family �Product class �Product line �Product type �Item 13

� Product System & Mixes: � Product System- It is a group of diverse but related items that function in a compatible manner. � Product Mixes- It is set of all products and items a particular sellers offers for sale. 14

� Identify. . . 15

� Identify. . 16

� Product mix - Depth Width and length 17

� Product mix width: How many different product mix line the company carries. � Product length: Total number of items in a mix � Product mix depth: How many variant are offered of each product in the line. � Product mix consistency: How closely the various product lines are related in end use. 18

� Product mix dimensions gives. . . ? ? ? ? �Company can add new product line(widening product mix) �It can lengthen each product line �It can add more product variant �It can pursue more product line consistency. �Eg: wipro. . �Assignment 3 19

� Product line analysis. . �Sales & Profit �Market profile 20

� Sales & Profit 21

� Market profile 22

� Product line length: Objectives of product line length �To induce up-selling �To facilitate cross-selling �To protects against economic ups & downs 23

�A company can lengthens its product line in two ways: �Line stretching � Down –Market stretch � Up-Market stretch � Two way stretch �Line filling A firm can also lengthen its product line by adding more items within the present range 24

� Its includes all activities of designing and producing the container for a product. �Three layers of packaging Primary packaging Secondary packaging Shipping packaging 25

26

� Various factors of packaging as a marketing tool: SELF SERVICE �CONSUMER AFFLUENCE �COMPANY AND BRAND IMAGE �INNOVATION OPPORTUNITY � 27

� Objectives of packaging: �Identify the brand �Convey descriptive and persuasive information �Facilitate product transportation and protection �Assist at-home storage �Aid product consumption 28

� Label can be a simple attached tag or an elaborately designed graphic that is part of the package. � Functions. . . �Identifies the product or brand �To grade the product �Describe the product �Promote product � Design – How a product looks and functions to a customer. � Delivery - How well the product or service is brought to the customer Product Strategy 29

30

� Warranties are formal statements of expected product performance by manufacturer. � Guarantees�General or specific guarantees 31

�A changing pricing environment: �By this buyer can. . . Get instance price comparisons from thousands of vendors Name their price and have it met Get products free �Seller can Monitor customer behaviour and tailor offers to individuals Give certain customer access to special price �Both buyers & sellers can 32

� How companies price: � Consumer Psychology and pricing �Reference prices �Price –Quality inferences �Price Endings 33

� Reference price: �Fair price �Typical price �Last price paid �Upper –Bound price �Lower –Bound price �Historical competitors price �Expected future price �Usual Discounted price 34

� Price – Quality price 35

� Price Ending 36

� Product Line Pricing � Optional-feature Pricing � Captive-product Pricing � Two-part Pricing � By-product Pricing � Product-bundling Pricing 37

� Reference: � Philip Kotler –Marketing Management-A south Asian Perspective 38