Product Strategy The Total Product Concept A product

Product Strategy The Total Product Concept

A product is a “bundle of tangible and intangible benefits that a buyer receives in exchange for money and other considerations” In effect, the consumer purchases more than an actual object Example: Porsche Total Product Concept The decision to buy a Porsche is not based on transportation needs While a car is all you need for transportation, a Porsche demonstrates your monetary success and achievements Such a purchase is bound with intangibles such as prestige, status, and image This example shows illustrates that a product is “much more than a physical object” The package of benefits is referred to as the total product concept It includes the physical items as well as the packaging, brand name, label, service guarantee, warranty and image

The Product Mix is the total range of products offered for sale by a single company It is the collection of product items and product lines that a firm tries to market The Product Mix Each of the products or product items in the mix appeals to a particular segment, and in a way that makes it distinct from offerings of the competition Example: Kraft Foods Kraft offers beverages, ready made meals, cheese, groceries, and snack items Together, all these items hit almost every segment available in the North American Market

The Product Item is defined as a unique product offered for sale by an organization The Product Item Marketers refer to the distinguishing product characteristic or primary benefit of a product or service (the one feature that differentiates the product) as the Unique Selling Point (USP) These may include: Format Size Variety Ingredients Etc

The Product Line is a grouping of product items that share major attributes but may differ in terms of things like size, form, or flavor The Product Line By offering an expansion of a similar line you may hit all consumers rather than just a select few Example: Cheerios While Cheerios was once a single product, many are included in the product line including Frosted, Honey Nut, Apple Cinnamon and Berry Burst Because of this, Cheerios now sells to people of all ages as their cereal offers a wide range of taste and packaging

Product Line Width refers to how many numbers of lines in the companies mix Product Line Depth and Width Product Line Depth refers to the number of items in the line All items and lines collectively form a firms product mix Example: Colgate Palmolive Colgate-Palmolive offers many products in different categories such as oral care, personal care, household care, and so on… Each one of these categories has different product line depths and widths For soap, there is Irish Springs, Palmolive, and Soft Soap Each one of these