This chapter discusses product characteristics and classifications. A product is anything that is offered in a market that satisfies a need or want. A product has 5 levels of offering: 1. Core benefit- reason why a person is really buying the product. 2. Basic product- core benefit. 3 Expected product- attributes or qualities expected from the product 4. Augmented product- exceeds expectations and 5. Potential product – takes into what the product is and can be in the future. All the five levels are important factors for the marketer to understand to incorporate product classification. There are 3 product classifications marketers categories products: 1.durabilty 2. Tangibility 3. Industrial or Consumer use. All the following elements are important for the product mix strategy when it comes to packaging and labeling.
The chapter also discusses managing new products. Most products are either acquired through acquisitions or through research and development. It is important to understand during new product development the need or want. A need has to be there for the idea to generate. A screening process takes place to weed out any other contenders that are not as strong or cannot meet the needs. The next phase is the concept development to determine who will use the product and to test the concept; whether targeted audience feel that the product will be relevant to the need or want. This process will help marketers come up with a marketing strategy. A general life cycle of a product is introduction, growth, maturity, and decline. Each stage requires a different marketing strategy. It is important for companies to bring ideas to concept to keep meeting the demands and needs of the consumer