CPTR: 5 PRODUCT STRATEGY Flashcards
is one of the significant elements of
marketing mix (4P’s).
Product
THREELEVELSOF A PRODUCT
Core Customer Value
Actual Product
Augmented Product
- the fundamental benefit or
value that a customer seeks when purchasing a
product. It answers the question: What is the customer
really buying?
Core Customer Value
- the tangible or physical product that
delivers the core benefit. This includes the product’s
features, design, brand, quality, and packaging.
Actual Product
- Additional services and
benefits that enhance the value of the actual product
and differentiate it from competitors. These are not
essential but improve customer satisfaction and loyalty.
Augmented Product
TYPESOFPRODUCTS
Customer Products
Industry Products
CONSUMER PRODUCTS
•Convenience Products
•Shopping Products
•Durable Products
•Non-durable Products
•Specialty Products
•Unsought Products
•Services
-Items that do not need much effort of planning from customers.
They are used in a day-to-day life and are frequently required
and can be easily purchased.
Convenience Products
-These products require special time and shopping efforts. They are
purchased purposefully from special shops or markets. Quality,
price, brand, style, and others are essential standards to be considered.
SHOPPINGPRODUCTS
-Can be used for an extended time and can be repetitively
made used of by one or more persons. Televisions, computer,
refrigerator, and vehicles are few examples of durable products.
Durable Products
-have short span of life. They
should be used within small time once they are
manufactured.
Non-durable products
-Unique or high-end products for which consumers are willing
to make a special effort to purchase.
Specialty Products
-These are items customers are not aware of or do not often
think about. New products that have no brand recognition
fall under this classification.
Unsought Products
-Refers to intangible offerings provided by businesses to
fulfill customer needs and wants. Unlike physical products,
services cannot be touched, stored, or owned, but they still
deliver value. Services are often part of a company’s core
offering or complement its tangible goods.
Service
-Natural resources or unprocessed materials that are used in
manufacturing or production processes. It falls into two major groups
which include farm products (wheat, cotton, livestock, fruits, vegetables)
and natural products (fish, lumber, crude petroleum, iron ore).
Raw Materials
-Products that become part of the finished product during the
manufacturing process. Example are engine parts, screws, circuit
boards, and glass for windows.
Components and Parts
-Durable goods used in the production process but not part of the
final product. Examples are machinery, tools, buildings, and
vehicles.
Capital Goods
-Products used in the daily operations of a business but not part of the
final product. Examples are lubricants, cleaning supplies, office
stationery, and protective gear.
Supplies and Consumables
-Intangible offerings that aid in the operation or maintenance
of a business. Examples are equipment repair, IT support,
logistics services, and consulting.
Industrial Services
_____________or product assortment refers
to the complete range of goods and services
that a company offers to its customers.
Product Mix
Product Mix
Width
Length
Depth
Consistency
- the number
of product lines the
company has to offer
and sell to customers.
Width
- the total
number of products in
all the product lines.
Length
- the variety of
versions or options
for each product in a
product line.
Depth
