!

"#$%$&$'%
8CuuC1
- anyLhlng LhaL can be oered Lo a markeL for auenuon, acqulsluon, use, or consumpuon LhaL mlghL sausfy a
wanL or need.
SL8vlCLS
- form of producL LhaL conslsLs of acuvlues, beneLs, or sausfacuons oered for sale LhaL are essenually
lnLanglble & do noL resulL ln Lhe ownershlp of anyLhlng.
*Mooy compooles ote movloq to o oew level lo cteouoq voloe fot tbelt costomets. 1o Jl[eteouote tbelt o[ets, beyooJ slmply
mokloq ptoJocts & Jellvetloq setvlces, tbey ote cteouoq & moooqloq costomet experlences wltb tbelt btooJs ot compooy.
*Mooy compooles ote movloq to o oew level lo cteouoq voloe fot tbelt costomets. 1o Jl[eteouote tbelt o[ets, beyooJ slmply
mokloq ptoJocts & Jellvetloq setvlces, tbey ote cteouoq & moooqloq costomet experlences wltb tbelt btooJs ot compooy.
()'!*+& -"."-/0 &1" +*/&'2")3.4-*" 1$")4)+15
!"#$%$&$'% $2(-$+4&$'%/ )'-" '# 6)4%!/
88Anu - refers Lo a name, Lerm, slgn,
symbol, or deslgn, or a comblnauon
of Lhem, lnLended Lo ldenufy Lhe
goods or servlces of one seller or
group of sellers & Lo dlerenuaLe
Lhem from Lhose of compeuLors
(Amerlcan Markeung Assoclauon).
- A brand ls Lhus a producL or servlce
whose dlmenslons dlerenuaLe lL
ln some way from oLher producLs
or servlces deslgned Lo sausfy Lhe
same need. 1hese dlerences may
be:
- 8elaLed Lo producL performance
of Lhe brand: foocuoool, touoool,
or tooqlble
- 8elaLed Lo whaL Lhe brand
represenLs or means ln a more
absLracL sense: symbollc,
emouoool, or lotooqlble
- ldenues Lhe source or maker of a producL
& allows consumers Lo asslgn responslblllLy
for lLs performance Lo a parucular
manufacLurer or dlsLrlbuLor
- 8rands also perform valuable funcuons for
rms:
- Slmplles producL handllng or Lraclng
- Pelps Lo organlze lnvenLory & accounung
records
- Cers legal proLecuon for unlque
feaLures or aspecLs of Lhe producL
Product Management
Handouts
Core 8eneL - 1he servlce or beneL LhaL Lhe cusLomer ls really buylng
8aslc roducL
- AL Lhls level, Lhe markeLer musL be able Lo Lurn Lhe core beneL lnLo
an acLual producL LhaL can possess Lhe baslc quallues requlred ln
addresslng Lhe consumer's needs (e.g. pen, bed, paper, desk)
LxpecLed roducL
- 8efers Lo Lhe seL of aurlbuLes and condluons LhaL buyers normally
expecL LhaL ls lncluded ln Lhe producL Lhey purchased
AugmenLed roducL
- 8efers Lo Lhe aurlbuLes, condluons, ldeas and brand posluonlng LhaL
exceeds whaL Lhe cusLomer expecLs LhaL Lhe producL provldes
()'!*+& +-4//$#$+4&$'%/
+-4//$#$+4&$'% +4&"7')$"/8!"#$%$&$'% /&)4&"75
1) uu8A8lLl1? Anu
1AnCl8lLl1?
nondurable goods - Langlble goods normally consumed
ln one or few uses.
5loce tbese type of qooJs ote potcboseJ
ftepoeotly, tbe opptoptlote sttoteqy ls to
moke tbem (1) ovolloble lo mooy
locouoos, (2) cbotqe o smoll motkop, &
(J) oJvetuse beovlly to loJoce ttlol &
bollJ ptefeteoce
1) uu8A8lLl1? Anu
1AnCl8lLl1?
uurable goods - Langlble goods LhaL normally survlve
many uses.
1bese ptoJocts ootmolly tepolte (1)
mote petsoool sellloq & setvlce, (2)
commooJ o blqbet motqlo, & (J) tepolte
mote sellet qootootees.
1) uu8A8lLl1? Anu
1AnCl8lLl1?
Servlces - lnLanglble, lnseparable, varlable, and
perlshable producLs.
1bese type of ptoJocts ootmolly tepolte
mote (1) poollty coottol, (2) soppllet
cteJlblllty, & (J) oJoptoblllty.
2) CCnSuML8-CCCuS
CLASSlllCA1lCn
(boseJ oo sbopploq
boblts)
Convenlence goods - purchased frequenLly,
lmmedlaLely, and wlLh mlnlmal eorL.
- SLaples: convenlence goods LhaL are
purchased on a regular basls
- lmpulse goods: purchased wlLhouL any
plannlng or search eorL
- Lmergency goods: purchased when a need
os urgenL
lmpolse & emetqeocy qooJs sboolJ be
ploceJ lo oteos ot locouoos wbete
coosomets wlll llkely expetleoce oo otqe
ot compellloq oeeJ to potcbose (e.q.
ofeo colleJ polot-of-potcbose klosks)
2) CCnSuML8-CCCuS
CLASSlllCA1lCn
(boseJ oo sbopploq
boblts)
Shopplng goods - purchased by consumers
characLerlsucally compared based on sulLablllLy,
quallLy, prlce and sLyle.
- Pomogenous shopplng goods: slmllar ln
quallLy buL dlerenL enough ln prlce Lo
[usufy shopplng comparlsons
- PeLerogenous shopplng goods: dler ln
producL feaLures and servlces LhaL may be
more lmporLanL Lhan prlce
netetoqeooos sbopploq qooJs sboolJ
cotty o wlJe ossottmeot to sousfy
loJlvlJool tostes & ttolo solespeople to
lofotm & oJvlse costomets.
2) CCnSuML8-CCCuS
CLASSlllCA1lCn
(boseJ oo sbopploq
boblts)
SpeclalLy goods - Lhose oerlngs LhaL have unlque
characLerlsucs or brand ldenucauon for whlch enough
buyers are wllllng Lo make a speclal purchaslng eorL.
1bese ptoJocts Joot tepolte
compotlsoos, boyets lovest ume ooly to
teocb Jeolets cottyloq tbe wooteJ
ptoJocts. ueolets olso Joot oeeJ
cooveoleot locouoos, oltbooqb tbey
most let ptospecuve boyets koow wbete
to foJ tbem.
2) CCnSuML8-CCCuS
CLASSlllCA1lCn
(boseJ oo sbopploq
boblts)
unsoughL goods - Lhose oerlngs LhaL Lhe consumer
does noL know abouL or normally Lhlnk of buylng.
1bese ptoJocts tepolte oJvetusloq &
petsoool-sellloq soppott.
3) lnuuS18lAL-CCCuS
CLASSlllCA1lCn
(boseJ oo telouve cost &
ptoJocuoo ptocess)
MaLerlals and parLs - goods LhaL enLer Lhe
manufacLurer's producL compleLely
lts petlsboble & seosoool ootote qlves
tlse to speclol motkeuoq ptocuces. ltlce
& setvlce ote mojot motkeuoq
cooslJetouoos, wltb btooJloq &
oJvetusloq less lmpottoot
3) lnuuS18lAL-CCCuS
CLASSlllCA1lCn
(boseJ oo telouve cost &
ptoJocuoo ptocess)
CaplLal lLems - long-lasung goods LhaL faclllLaLe
developlng or managlng Lhe nlshed producL.
AJvetusloq ls mocb less lmpottoot tboo
petsoool sellloq. Ooollty, feototes, ptlce,
& setvlce ote mojot cooslJetouoos. 1be
soles fotce sboolJ be mote lmpottoot
tboo oJvetusloq.
Product Management
Handouts
+-4//$#$+4&$'% +4&"7')$"/8!"#$%$&$'% /&)4&"75
CLASSlllCA1lCn
(boseJ oo telouve cost &
ptoJocuoo ptocess)
Supplles and buslnesses - shorL-Lerm goods and
servlces LhaL faclllLaLe developlng or managlng Lhe
nlshed producL.
()'!*+& !$##")"%&$4&$'%
()'!*+& !$##")"%&$4&$'% ()'!*+& !$##")"%&$4&$'% /").$+"/ !$##")"%&$4&$'% /").$+"/ !$##")"%&$4&$'%
lC8M
lLA1u8LS
CuS1CMlZA1lCn
L8lC8MAnCL
CuALl1?
CCnlC8MAnCL
CuALl1?
uu8A8lLl1?
8LLlA8lLl1?
8LAl8A8lLl1?
S1?LL
1bls tefets to tbe slze, sbope, ot pbyslcol
sttoctote of o ptoJoct. C8uL8lnC LASL
1bls tefets to bow eosy lt ls fot tbe
costomet to ploce oo otJet wltb tbe
compooy.
1bls tefets to tbe outlbotes & cooJluoos
tbot sopplemeot tbe boslc foocuoo of
ptoJocts. compooles coo lJeoufy & select
opptoptlote oew feototes by sotveyloq
teceot boyets & tbeo colcolouoq
costomet voloe vetsos compooy cost fot
eocb poteouol voloe. Motketets sboolJ
cooslJet (1) bow mooy people woot eocb
feotote, (2) bow looq lt woolJ toke to
lottoJoce lt, & ooJ (J) wbetbet
compeutots coolJ eoslly copy lt.
uLLlvL8?
1bls tefets to bow well tbe ptoJoct ot
setvlce ls btooqbt to tbe costomet. lt
locloJes speeJ, occotocy, & cote
tbtooqboot tbe ptocess.
As compooles bove qtowo ptofcleot lo
qotbetloq lofotmouoo oboot loJlvlJool
costomets & bosloess pottoets (soppllets,
Jlsttlbotots, tetollets), & foctotles beloq
JeslqoeJ mote fexlbly, tbey bove
locteoseJ tbelt oblllty to loJlvlJoollze
motket o[etloqs, messoqes & meJlo.
lnS1ALLA1lCn
1bls tefets to tbe wotk Jooe to moke o
ptoJoct opetouoool lo lts ploooeJ
locouoo. ocb lostollouoo ls o ttoe
sellloq polot fot boyets of complex
ptoJocts.
1bls tefets to tbe level ot wblcb tbe
ptoJocts ptlmoty cbotoctetlsucs opetote.
compooles sboolJ Jeslqo o petfotmooce
level opptoptlote to tbe totqet motket &
compeuuoo, bot oot oecessotlly tbe
blqbest level posslble. 1bey most olso
moooqe tbls tbtooqb ume--l.e.
coouoooosly lmptovloq tbe ptoJoct coo
ptoJoce blqb tetotos & motket sbote.
CuS1CML8
18AlnlnC
1bls belps tbe costomets employees
ose tbe veoJots epolpmeot ptopetly &
e[cleotly.
1bls tefets to tbe Jeqtee to wblcb oll
ptoJoceJ oolts ote lJeoucol & meet
ptomlseJ speclfcouoos
CuS1CML8
CCnSuL1lnC
1bls locloJes Joto, lofotmouoo
systems, & oJvlce setvlces tbe sellet
o[ets to boyets.
1bls tefets to tbe meosote of o ptoJocts
expecteJ opetouoq llfe ooJet oototol ot
sttessfol cooJluoos.
MAln1LnAnCL &
8LAl8
1bls tefets to ptoqtoms belp costomets
keep potcboseJ ptoJocts lo qooJ
wotkloq otJet.
1bls ls o meosote of tbe ptoboblllty tbot o
ptoJoct wlll oot molfoocuoo ot foll wltblo
o speclfeJ ume petloJ.
8L1u8nS
1bls meosotes tbe eose of fxloq o
ptoJoct wbeo lt molfoocuoos ot folls.
1bls Jesctlbes tbe ptoJocts look & feel to
tbe boyet cteouoq Jlsuocuveoess tbot ls
botJ to copy.
Product Management
Handouts
!"/$7% ls Lhe LoLallLy of feaLures LhaL aecL how a producL looks, feels, & funcuons Lo a consumer. lL oers funcuonal & aesLheuc
beneLs & appeals Lo boLh our rauonal & emouonal sldes.
()'!*+& -$#"3+5+-" /&47"/
ln18CuuC1lCn
C8CW1P
MA1u8l1?
uLCLlnL
1be lottoJocuoo stoqe of tbe ptoJoct llfe cycle ls wbeo tbe motkeuoq teom empboslzes ptomouoo ooJ
tbe ptoJoct's loluol Jlsttlbouoo. Ofeo tbe ptoJoct wlll bove llule ot oo compeutots ot tbls polot.
Nooetbeless, soles moy temolo low becoose lt tokes ume fot tbe motket to occept tbe oew ptoJoct. At
tbls stoqe of tbe llfe cycle, tbe compooy osoolly loses mooey oo tbe ptoJoct.
lo tbe qtowtb stoqe of tbe ptoJoct llfe cycle, tbe motket bos occepteJ tbe ptoJoct ooJ soles beqlo to
locteose. 1be compooy moy woot to moke lmptovemeots to tbe ptoJoct to stoy compeuuve. At tbls
polot, tbete ote sull telouvely few compeutots.
lo tbls stoqe of tbe ptoJoct llfe cycle, soles wlll teocb tbelt peok. Otbet compeutots eotet tbe motket wltb
oltetoouve solouoos, mokloq compeuuoo lo tbe motket fetce. 1be compooy tbot lottoJoceJ tbe oew
ptoJoct moy beqlo to foJ lt Jl[colt to compete lo tbe motket.
At tbls stoqe of tbe ptoJoct llfe cycle, soles wlll beqlo to Jeclloe os tbe ptoJoct teocbes lts sototouoo
polot. Most ptoJocts ote pboseJ oot of tbe motket ot tbls polot Joe to tbe Jecteose lo soles ooJ becoose
of compeuuve ptessote. 1be motket wlll see tbe ptoJoct os olJ ooJ oo looqet lo JemooJ.
Product Management
Handouts