Concept of product
One of the important elements of marketing mix is Product. Any firm is known by the product it is offering. The other elements of marketing mix are based on it. So there it is very important that the firm must have a sound product policy. Product is any object which satisfies the consumer needs. It can be in any form like tangible or intangible.
Levels of product
According to Philip Kotler the levels of product are five. These levels are also known as consumer value hierarchy as each level is adding more consumer value.
i) The first level of product is core benefit or core product which a consumer is actually buying.
ii) The next level of product is basic product which includes the features, quality, design etc. of the product.
iii) Then the third level is expected product which means expectations by the consumer regarding the product.
iv) The fourth level is augmented product means to offer extra services to consumer than expected by them.
v) The last level is potential product which means changes in the product in the
Thus, these above discussed are the levels of the product.
Classification of product
The product can be classified into five categories.
I) Durable product:- these are the products which have long life. They can be seen or touched. Like table, chair etc.
II) Non durable product:- these are the products which have short life, which perish quickly. They can also be seen or touched. Like fruits etc.
III) Service:- services can not be seen or touched. Like the service of chartered accountant, lawyer etc.
IV) Consumer product:- these are the products which are used by the consumer directly without processing. Like washing powder, biscuits etc.
V) Industrial product:- these are the goods which are used by manufacturer for further production like raw material.