Chapter 11: Setting product strategy

What are the characteristics of products, and how do marketers classify products?

By: Kartik SinglaIndian Institute of Technology(BHU), Varanasi

Product

Physical goods Services Ideas

"A product is anything that can be offered to

satisfy a need”

Core benefitIt refers to the service or

benefit the customer is really buying.

Basic/Generic productIt refers to the marketer’s effort of converting the core benefit into an

product.

Expected product

It refers to the expectations the consumers have when they purchase a product.

Augmented product

It refers to the product prepared by the marketer which exceeds the

customer’s expectation.

Potential product

It includes all the transformations the product might undergo in future.

Potential product

It includes all the possible transformations which the product might undergo in future.

Product Classification

Durability and Tangibility

Use

Durability and Tangibility

Nondurable goods (frequently

used, tangible)

Durable goods (can last long, tangible)

Services (perishable, intangible)

Use

Shopping goods: Compared on the basis of price, quality and style. Furniture, clothing......

CONSUMER GOODS

Convenience goods: Purchased immediately, frequently. Soaps, soft drinks...

Unsought goods: Consumer does not have much knowledge or has little intention to buy. Smoke detectors, life insurance......

Speciality goods: Unique brand image enough for buyers to buy. Cars, stereos….

Installations: Brought directly from the industrial producer. Heavy equipment, buildings....

INDUSTRIAL GOODS Materials and Parts: Goods which enter the manufacturer’s process completely. Farm products, component materials...

Operating supplies: Short term goods and services, help in managing finished product. Lubricants, coal...

Accessory equipment: Shorter life than installations. Factory and office equipment...

“These slides were prepared by ‘Kartik Singla’

as a part of an internship done under ‘Prof. Sameer Mathur’ (www.IIMInternship.com).”

Disclaimer