Marketing- Product level and classification

Product is anything that can be able to meet the needs and wants of target customers. A product is anything offered for sale for the purpose of satisfying a want or need on both side of the exchange process. A product is a set of tangible and intangible attributes including packaging, color, price, quality and brand, plus the services and reputation of the seller.
Levels of Product:
A customer not only purchases a product but also various attributes of a product. Specially, packaging, color, price, quality, brand, etc. So marketer has to take proper planning before introducing product in the market. Marketer mainly considers three levels of product. These are given below:
§  Core product: Core product consists of the core problem solving benefit. A warm coat will protect you from cold winds. The core product of a book is information. It is not the book itself. The book is selling the information in it. The core product of a restaurant is offering food. It is not the building of the restaurant or the service in itself. The core product is the food.
The more important the utility or the benefit you provide, the more likelihood that the customer needs your product. Unfortunately, it is also likely that your sector will have a lot of competition when the core product is a common product. The more unique the core product (engineering), the lesser the players in the market and lesser the competition. This is where, understanding the other five product types can help you as a marketer, as the other product levels can help you differentiate your product
§  Generic Product represents all the qualities in the product- fit, wind repelling, high quality zippers etc
§  Actual product: The actual product exists around the core and includes the quality level, features, design, brand name and packaging. The coat should be warm and be comfortable to wear in any situation- social or official
        As the brand grows in reputation, you have to take care of the expectations of the consumer. Daikin, which is a world renowned air conditioning brand, is expected to have world class service for its air conditioners. If it does not deliver on this expected product, then it will affect the basic product (air conditioner) as well.
§  Augmented product: The augmented product is the actual product plus the various services and benefits offered with it. Coat should be in style, trendy colors and by a well known brand along with service as well as value for money
       A BMW or a Mercedes is an augmented product. When people were bored of normal cars and passenger cars offered by the likes of Volkswagen, General Electric or others, there entered a new range of premium sports and luxury cars like the BMW, the Mercedes or Audi.
These products saw beyond the expectations of the customers and went on to provide “Exceeds customer satisfaction”. This basically means that where you expected normal seats, these seats had warmers installed. The interiors were fantastic and were designed by high end fashion designers. The pick up and handling were excellent.
Although the price was more, the product designers of BMW, Audi or Mercedes gave the consumers what they wished for. They gave them something which was far beyond an expected product. They gave them luxury on four wheels. The augmented product is the desire of the customer, which you convert to reality. A 5 star restaurant, giving a fantastic four course meal, with the relaxation and the ambiance of your life, is serving as an augmented product.
§  Potential .product- Something for the future.Warm coat thin as paper but has a protective lining to protect against the rains as well Each product in the market has a future. The telephone which was launched, was defeated by the pager and then mobiles and finally smartphones. The polaroid and film using cameras lost their market to digital cameras, who are in turn losing their markets to smartphones again. Laptops have beaten desktop computers. Amongst the five product levels, it is the potential product you have to keep an eye out for. It can bring you down to the street, or it can make you a millionaire.

Product Classification:
A product is anything offered for sale for the purpose of satisfying a want or need on both side of the exchange process. Products are classified on two types on the basis of customer characteristics.
§  Consumer product
§  Industrial product
Consumer Products: Consumer products are products and services bought by final consumers for personal consumption. Consumer products are mainly use in personal consumption. Various types of consumer products are given below:
A. Convenience products: Convenience products are consumer’s products and services that customers usually buy frequently, immediately and with minimum of comparison and buying effort. There are various types of convenience products are:
§  Staple products: Staple products are products that are bought often, routinely, and without much thought. Such as; Rice, Sault, etc.
§  Impulse products: Impulse products are products that are bought quickly as unplanned purchases because of a strongly felt need. Such as; Ice-cream, toys, magazines, etc.
§  Emergency products: Emergency products are products that are purchased immediately when the need is great. Parts of car, medicine service for emergency patient, raincoat for rainy season, etc.
§  Home delivery products: These products are mainly delivered to customer’s home.
 B. Shopping Products: The products which are purchased by customers on the basis of pre planning is called shopping product. Shopping products are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price and style. Shopping products are:
§  Fashion products: Fashion products are shopping goods that are purchased for their appearance, distinctiveness or style. Such as; garments, gift etc.
§  Service products: Service goods are durably shopping goods that represent relatively large outlays to the consumer and that usually require repair or other servicing. Such as; TV, Air conditioner etc.
C. Specialty Products: These products are charming and technology based. These are consumer products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort. Such as; Mercedes Car, High priced watch, etc.
D. Unsought products: These are consumer products that the consumer either does not know about or know about but does not normally think of buying. Such as; Life insurance policy, grave stone, etc. Unsought products are:
§  New unsought products
§  Regular unsought products
Industrial Products: Industrial products are mainly used for further production. According to Philip Koter “Industrial products are products bought by individuals and organizations for further processing or for use in conducting a business”. There are various types of industrial products are given below:
A. Materials and parts: Materials and parts are industrial products that enter the manufacturer’s product completely. It has two types:-
a). Raw materials
b). Manufactured materials and parts
B. Capital item: Capital items are industrials products that aid in the buyer’s production or operations, including installations and accessory equipment. It has two types:
a). Accessory equipment
b). Installations
C. Supplies and services: These are industrial products that do not enter the finished product at all. These are:
a). Supplies
b). Business services

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