This presentation discusses products and their classification. It defines a product as anything that can be offered in a market to satisfy a need, want or demand. Products can be tangible goods or intangible services. Consumer products are classified based on shopping habits into convenience goods, shopping goods, specialty goods and unsought goods. Industrial products include materials and parts, supplies and services, and capital items. The key difference between consumer and industrial products is that consumer products are purchased for personal or household use while industrial products are inputs for industrial use.

1. In the name of Allah the most beneficent
and the most merciful… The lord of the
world and the master of the day of
judgment…

2. Presented to
Sir Imran Ijaz
Marketing
Presentation

3. Key Points of Discussion /
Objectives
What is Product ?
Levels of Product Benefits
Classifications of Product
Difference between Industrial
and Consumer Products

4. Product

5. Product
Goods
Service,
Idea
that can be offered to a market to
satisfy a Need , want And
Demand of the Customer

6.  Tangible
 Intangible good or service
that is a result of a process and that
is intended for delivery to a customer
or end user.
Product

7.  A SOCCER BALL is an example of a
TANGIBLE PRODUCT.
 An example of an INTANGIBLE
PRODUCT is INSURANCE.
Product (Example)

8. Products can also be
classified by use,
by brand, or by other
classifications as well.
Product

9.  In MARKETING, a product is
anything that can be offered to
a market that might satisfy a want or
need.
 In RETAILING, products are
called merchandise.
 In MANUFACTURING, products
are bought as raw materials and
sold as finished goods.
Product Contd…..

10. LEVELS OF A
PRODUCT
BENEFITS

11. Five Levels of Product
Level 1: Core Product
Level 2: Basic Product
Level 3: Expected Product
Level 4: Augmented product
Level 5: Potential Product

12. Overview of the Product
Levels
THE THREE LEVELS OF A PRODUCT ARE AS FOLLOWS:
1.) The Core Product: It’s the intangible benefit
provided by a product.
2.) The Expected Product: It’s the tangible and
physical benefit of a product.
3.) The Augmented Product: It’s the extra add on
,value or service one gets out purchasing a product.

13. Basic Product
 Basic Benefit of product that full fill the
need want and basic demand of the
Product.
 Example : Sony Camera
 Basic Benefit (Capture Pictures)

14. Core Product
This Level is the basic level and simply
looks at what people set out to buy and
what benefits the producer would like
their product to offer buyers.

15. Core Product (Example)
A camera is expected to take pictures
but there may be other benefits that
the producer wants the buyer to enjoy
such as a
 Wide lens,
 Face recognition
 High definition videos.

16. Level 2: Actual Product
Kotler states that this can involve
deciding on the
 Quality level,
 Product and service
 Features,
 Styling,
 Branding and
 Packaging.

17. Actual Product (Example)
Sony Handy cam (brand name),
packaged,
convenient design so you can hold it,
play back features etc.
That provide the desired benefits, high
quality etc.

18. Level 3: Augmented product
 It involves deciding the additional non
tangible benefits that a product can
offer. Competition at this level is based
around after sales service,
 help lines,
 warranties,
 Free / cheap delivery and so on.

19. Augmented product
(Example)
Receive more than just the camcorder.
Give buyers a WARRANTY on parts
and Workmanship, free lessons on
how to use the camcorder, quick
repair SERVICE when needed and
toll free telephone number when
needed.

20. Product levels: The Customer-Value Hierarchy
Five Product Levels

21. NOKIA N8:
THE CORE
PRODUCT:
 COMMUNICATION
 MESSAGING

22. THE ACTUAL PRODUCT
 PACKAGING-Anodised
Aluminium case, available
in 6 different colours.
Size: 113.5 x 59 x 12.9 mm
Weight (with battery): 135 g
Volume: 86 cc
 FEATURES-Works on
Symbian ^3, Has a 12 MP
camera, Radio and Music
player and Gaming.
 QUALITY LEVEL: Phone
camera is of exceptional
quality with HD recording.
 BRAND: Nokia, which
happens to be one of the
most trusted cell phone
brands in Pakistan.

23. AUGMENTED PRODUCT
 DELIVERY: Then
product can be
purchased from any
Electronic goods
showroom. It can be
also ordered online.
 INSTALLATION: Not
required.
 WARRANTY: The
product has a warranty
period of 1 year.
 AFTER SALE
SERVICES: Can be
acquired from any
Nokia service centre.
 CREDIT/PAYMENT

24. Classification of Products

25. Product Classification
 Can be done in a variety of perspectives
 Consumer-Goods Classification
◦ Classified on the basis of shopping habits
 Durability and Tangibility
 Industrial-Goods Classification
◦ Classified in terms of their relative cost
and how they enter the production
process.

26. Consumer Product
Classification
 Convenience Goods
◦ Inexpensive, frequently purchased.
◦ Little effort needed to purchase them.
◦ Staples, Impulse and emergency goods.

27.  Shopping Goods
◦ Not as frequently as convenience
products
◦ Costly
◦ Consumer does research before
purchase.

28. Specialty Goods
◦ Unique features
◦ Consumer is prepared to pay a premium
price.

29.  Unsought Goods
◦ Those good that consumers do not know
or
◦ Doesn’t think of buying.

30. Durability and Tangibility
 Nondurable Goods
◦ Tangible goods consumed in one or few
uses
◦ Purchased frequently
◦ Strategy : availability , low priced , heavily
advertised

31.  Durable Goods
◦ Tangible goods that survive many uses
◦ Require more personal selling and service
◦ Higher margins and requires seller
guarantee

32.  Services
◦ Intangible product
◦ Requires more quality control and
credibility

33. Industrial-Goods
Classification
 Materials and Parts
Raw Materials
Manufactured
materials and
parts
Farm
Products
Natural
Products

34.  Materials and Parts
Raw Materials
Manufactured
materials and
parts
Farm
Products
Natural
Products

35.  Materials and Parts
Raw Materials
Manufactured
materials and
parts
Component
materials
Component
Parts

36.  Materials and Parts
Raw Materials
Manufactured
materials and
parts
Component
materials
Component
Parts

37.  Capital Items
◦ Installations
◦ Equipment

38.  Supplies
◦ Maintenance and repair items
◦ Operating supplies

39.  Business Services
◦ Maintenance and repair services
◦ Business advisory services

40. Consumer Product
Marketing
Consideration
Convenience Shopping Specialty Un-sought
Customer buying
behavior
Frequent
purchases
Less frequent
purchase
Special purchase
effort
Little product
awareness
Price Low Higher high varies
Distribution Widespread
Distribution
Convenient
location
Selective
distribution in
fewer outlets
Exclusive in one or
few outlets.
varies
Promotion Mass promotion Advertising and
personal selling
More carefully
targeted promotion
by both.
Aggressive
advertising and
personal selling
Example Toothpaste, soap,
candy
Television ,
furniture
Luxury items,
Rolex watches.
Life insurance,
blood donations

41. Difference between Consumer
and Buyer Products

42. Industrial
products
Consumer
products
Product
Materials and
parts
Supplies and
services
Capital itemsSpecialty
Shopping
Unsought
Convenience

43. Physical products or goods have been
classified into two separate categories,
CONSUMER GOODS
INDUSTRIAL GOODS.
Consumer Goods vs Industrial Goods

44. Consumer Goods vs Industrial Goods
Consumer Goods
Shopping goods,
Specialty goods,
Convenience goods.
Unsought goods
Industrial Goods
Materials and Parts
Supplies and services
Capital items
Industrial supplies
Installations
Accessory Equipment
Raw materials

45. Consumer Goods
MARKETING
CONSIDERATION
CONVENIENCE SHOPPING SPECIALITY UNSOUGHT
Consumer Buyer
Behavior
Price Distribution
Promotion
Examples
Frequent purchase,
little planning
little comparison
or shopping effort,
low customer
involvement
Low price
Widespread
distribution,
convenient
locations
Mass promotion
by the producer
Toothpaste,
magazines,
laundry
detergent
Less frequent
purchase, much
planning and
shopping effort,
comparison of
brands on price,
quality, style
Higher price
Selective
distribution in
fewer outlets
Advertising and
personal selling
by both producer
and resellers
Major appliances
televisions,
furniture,
clothing
Strong brand
preference and
loyalty, special
purchase effort,
little comparison
of brands, low
price sensitivity
High price
Exclusive
distribution in
onlv one or a
few outlets per
market area
More carefully
targeted
promotion by
both producer
and resellers
Luxury goods,
such as Rolex
watches or fine
crystal
Little product
awareness,
knowledge (or if
aware, little or
even negative
interest)
Varies
Aggressive
advertising
and personal
selling by
producer and
resellers
Life insurance,
Red Cross blood
donations

46. Industrial Goods

47. Review of Presentation
What is Product ?
Levels of Product Benefits
Classifications of Product
Difference between Industrial and
Consumer Products

49. Questions