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Summary of Product Characteristics and Classifications

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Summary of Product Characteristics and Classifications

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CHAPTER 12 ::: SETTING PRODUCT
STRATEGY

SUMMARY

::: Product Characteristics and Classifications

Product Levels: The Customer Value Hierarchy

The marketer needs to address five product levels. Each level adds more customer value, and five constitute a Customer value hierarchy. Core benefit: It is the fundamental level. It is the benefit the customer is really buying. Basic product: The marketer has to turn the core benefit in to the basic product. Expected product: A set of attributes and conditions buyers normally expect when they purchase this product. Augmented product: The product that exceeds customer expectations. Potential product: It encompasses all the possible augmentations and transformations the product or offering might undergo in the future.

Product Classifications:

Durability and Tangibility
1. Nondurable goods
2. Durable goods
3. Services

Consumer-Goods classification
1. Convenience goods: staple goods, impulse goods, emergency goods. 2. Shopping goods: homogeneous shopping goods, heterogeneous shopping goods. 3. Specialty goods
4. Unsought goods

Industrial-Goods Classification
1. Material and Parts: Raw material products include farm products and natural products, manufactured materials and parts include component materials and component parts. 2. Capital items: installations and equipments.

3. Supplies and Business services: Supplies include maintenance and repair items and operating supplies. Business services include maintenance and repair services and business advisor services.

::: Differentiation

to be branded, products must be differentiated.

Product Differentiation:

Form: The size, shape, or physical structure of a product.
Features: Most products can be offered with varying features that supplement its basic function. Performance Quality: It is the level at which product’s primary characteristics operates. Conformance Quality: It is the degree to which all the produced units are identical and...