Product definition

1. Marketing

Lecture 4. Product

2. Product definition

Product can be anything that
can be offered to buyers for
consumption, use or further
processing.

3. Product functions

Functionality - the need satisfying
function
Performance – quality and durability
Ease of use of the product
Aesthetic function - the shape and
color of products
Legal functions - fulfilling the legal
requirements
Economic and the cost related
functions
Integration capabilities

4. Product classification

Due to the use and destination,
products are divided into:
Consumer (daily, basic,
impulsive, emergency,
selectable)
Industrial (capital goods,
products accessories, raw
materials, materials, supplies,
professional services)

5. Product levels by Levitt

Proposed by Theodore Levitt in the 80s:
The core - the essence of the product is
the product itself, its functional features,
and some technical solutions
Actual product is anything that has an
impact on the perception of goods
(services) to the consumer. It consists of
factors such as brand, trademark, model,
material, price, quality, packaging, style,
and appearance and behavior of sales
staff.
Product extended - additional benefits for
the consumer, such as delivery, warranty,
returns and spare parts, the availability of
convenient services, credit, instruction,
installation or maintenance etc.

6. Product levels by Kotler

Philip Kotler suggested 5 levels:
basic benefit - it is a basic need met by the
product
basic product - this part of the product,
which is necessary to meet the needs
expected product - customer expectations
towards the product (panoramic image)
expanded product
potential output - all improvements which
may be subject to the product in the future

7. BCG Grid

8. Product life cycle

9. Product life cycle models

10. Product management

11. Technological life cycle

12. Product strategy process

13. Product strategy process