1. CORE
2. TANGIBLE
3. AUGMENTED

CORE: Why the product exists in the first place, must provide the marketer with something to work-on, influencing the next layer

TANGIBLE: Putting flesh onto the core benefit. There must be a product-fit

AUGMENTED: Depends on the positioning of the product

GENERIC DIMENSIONS, key benefits which relate to its function

e.g. shoe polish (cleans shoes) / Freezers (store frozen foods)

SENSUAL DIMENSIONS, have an effect on the senses -design, colour, tastes, smell and texture

EXTENDED DIMENSIONS, wide range of additional benefits

e.g. servicing arrangements, credit facilities, guarantees and maintenance contracts

1. The PRODUCT ATTRIBUTES -including its features, styling, brand name, quality, packaging and the size and colour variations offered
2. The PRODUCT BENEFITS -that stem from its performance and image and which contribute to the 'bundle of satisfaction' that it delivers
3. The MARKETING SUPPORT SERVICES that are provided in addition to the product itself. These might include elements such as pre-sales services, delivery, installation and after sales support

 Managing the product mix

The product mix is defined by Lancaster and Massingham as: "A product mix constitutes the sum total of individual product items and product lines which the company markets. It is common to describe the product mix with the term's 'width' and 'depth'. This enables an analysis of the 'constituency of the product mix to be made." (1998, pg.144) 

• Product mix is not static
• Customer needs change
• Substitutes
• Competitors
• Changing technology

Changing technology, evolving competition and changing customer needs. Means a company must find ways of keeping its product range fresh and interesting.

 Product Portfolio (can be extended in a number of ways)

1. Introducing variations in model or style (product extension)
2. Changing the quality of products offered at different price levels
3. Developing associated items
4. Developing new products that have little technical or marketing relationship to the existing range

POLICY DECISIONS arise include the following areas:

• Which products should be dropped from range entirely?
• Which products should be backed with promotional campaigns?
• Which products could be adapted to fit the market better, and in what ways?
• Which new products could be introduced and at what cost?

 The BCG matrix is a useful tool for analysing product portfolio (product mix) decisions but it is only a snapshot of the current position

Management must: 

1. Retain and maintain existing products to meet their corporate objectives
2. Modify/adapt existing product to take advantage of new technology, opportunities etc.
3. Delete old products
4. Introduce a flow of new products to maintain sales/product profit levels and for tomorrow's market

1. Market penetration
2. Product development
3. Market development
4. Diversification

Branding is the major tool marketers have to distinguish their products from those of competition

Halifax Bank plc, see their brand as "It covers more than just the logo. It is made up of all the values that the Halifax represents"

• awareness
• repeat sales
• new customer sales

A brand is a name, term, symbol, design or combination thereof that identifies a sellers products and differentiates them from competitors' products (Lamb)

A BRAND NAME is that part of the brand that can be spoken e.g. Coke (Coca-Cola), Nissan (Nissan), Disney (Walt Disney)

"An important element of any product strategy is the role played by brand names. Brands are designed to enable customers to identify products or services, which promise specific benefits. They are a form of shorthand in that they create a set of expectations in the minds of customers about purpose, performance, quality and price. Allows added value to be built into products enabling the strategist to differentiate them form competitors. Brand names are of enormous strategic and financial value and in many cases the result of years of investment in advertising." (Wilson and Gilligan, 1997 pg.397)

1. CORPORATE UMBRELLA BRANDING, -where the company's name is used to cover the complete spectrum of products and services offered e.g. Heinz, Virgin
2. FAMILY UMBRELLA NAMES, -to cover a range of products in a variety of markets e.g. Marks and Spencer's use of its 'St. Michal' brand
3. RANGE BRAND NAMES, -which link products within a specific market sector e.g. Mars with mars bar, mars drink and mars ice-cream
4. INDIVIDUAL BRAND NAMES, -which are used for one or more markets e.g. Lucozade

• What values are associated with brand name?
• How can the brand be developed?
• How far cab the name be stretched, in other words, to what extent does it lend itself to being moved into related or possible new market sectors?
• How much is it worth (brand equity)?

• The brand's market position (leaders are worth more than followers)
• The age and stability of the brand
• The nature of the market (brands in market sectors such as food and drinks are less prone to fashion and have less predictable and fast-changing life cycles, than say fashion or computers)
• Geographical spread
• Sales trends in the market
• The trade marks or patents that give a form of protection
• The levels of advertising and the patterns of expenditure over the past few years

 What might be the main concerns for a marketing manager dealing with a mature product?

• How to maintain awareness, loyalty for its product (distribution, availability)
• How to defend its position against new more technically advanced competitor offerings
• Price competition
• Reinforcement advertising
• Extending life-cycle through innovation
• New strategies to combat substitute competitor strategies

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