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Eight demand states are

possible NEGATIVE DEMAND consumer

dislike the product

NONEXISTENT DEMAND consumermay be uninterested in the product

LATENT DEMAND consumer mayshare a strong need that cannot be

satisfied by an existing product DECLINING DEMAND consumer buy

a product less frequently

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Eight demand states are possible

IRREGULAR DEMAND consumer purchases

vary on seasonal, monthly, etc.

FULL DEMAND consumer are adequatelybuying all products

OVERFULL DEMAND more consumers

would like to buy the product

UNWHOLESOME DEMAND consumer maybe attracted to products that have

undesiderable social consequences

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Product Levels:The customer

value HierarchyPotential product

Augmented product

Expected product

Basic product

Core benefit

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Product classification

Durability

Nondurable goods

Durable goods

Services

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Specialty ProductsSpecialty Products Unsought ProductsUnsought Products

Shopping ProductsShopping Products

Buy less frequently> Gather product information> Fewer purchase locations> Compare for:

Suitability & Quality Price & Style

Convenience ProductsConvenience Products

Special purchase efforts> Unique characteristics> Brand identification> Few purchase locations

New innovations> Products consumers dontwant to think about.>Require much advertising &personal selling

Buy frequently & immediately> Low priced> Many purchase locations> Includes:

Staple goods Impulse goods Emergency goods

Consumer-Goods Classification

on Shopping habits

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Industrial Goods Classification

Material and parts : raw material ( farm and naturals) and

manufactured materials (component material and parts) .

Capital Items: Installations and Equipment.

Supplies and business services: maintenance and repairitems (paint, nails, brooms); and operating supplies

(lubricants, coal, writing paper, pencils)

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Differentiation

Product Differentiation

Form

Features

Customization

Performance Quality

Conformance Quality

DurabilityReliability

Reparability

Style

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Differentiation

Design

Design is the totality of features that

affect how a product looks, feels, andfunctions in terms of customer

requirements

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Services Differentiation

Ordering ease Delivery

Installation

Customer Training

Customer Consulting

Maintenance and Repair

Return

Differentiation

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Product and Brand Relationship

The Product Hierarchy

1. Need family

2. Product family

3. Product class

4. Product line

5. Product type6. Product variants

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Product Mix

Width

Length

Depth

Consistency

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Product Line Stretching

Down Market Stretch

Up- market stretch

Two way stretch