What is a Product?

What is a Product?

A pair of Adidas trainers, a Volvo truck, a Nokia mobile telephone, a Vidal Sassoon haircut, an Oasis concert, a EuroDisney vacation, advice from a solicitor and tax

preparation services are all products. We define a product as anything that is product offered to a market for attention, acquisition, use or consumption and that might

Anything that can be satisfy a want or need. Products include more than just tangible goods. Broadly

offered to a market for defined, products include physical objects, services, persons, places, organiz­

attention, acquisition, ations, ideas or mixes of these entities.

use or consumption that Services are products that consist of activities, benefits or satisfactions that

might satisfy a ­want or need. It includes

are offered for sale, such as haircuts, tax preparation and home repairs. Services physical objects, are essentially intangible and do not result in the ownership of anything. (Because

services, persons, of the importance of services in the world economy, we will look at them more

places, organizations closely in Chapter 15.)

and ideas. Product planners need to think about the product on three levels. The most

basic level is the core product, which addresses the question: What is the buyer services really buying? As Figure 13.1 illustrates, the core product stands at the centre of

Activities, benefits or the total product. It consists of the problem­solving services or core benefits that

satisfactions that are consumers seek when they buy a product. A woman buying lipstick buys more

offered for sate. Elian lip colour. Charles Rcvson of Revlon saw this early: 'In the factory, we make

cosmetics; in the store, we sell hope.' Theodore Levitt has pointed out that buyers core product The problem­solving

'do not buy quarter­inch drills; they buy qnartcr­ineh holes'. Thus when designing services or core benefits products, marketers must first define the core of benefits that the product will

thai consumers are provide to consumers.

really buying when they The product planner must next build an actual product around the core

obtain a product. product. Actual products may have as many as five characteristics: a quality

level, features, styling, a brand name and packaging. For example, Sony's actual product Handycam camcorder is an actual product. Its name, parts, styling, features,

A product's parts, packaging and other attributes have all been combined carefully to deliver the

quality level, features, core benefit ­ a convenient, high­quality way to capture important moments.

design, brand name, Finally, the product planner must build an augmented product around the

packaging and other core and actual products by offering additional consumer services and benefits.

attributes that combine Sony must offer more than a camcorder. It must provide consumers with a

to deliver core product benefits.

complete solution to their picture­taking problems. Thus when consumers buy a Sony Ilandycam, Sony and its dealers might also give buyers a warranty on parts

augmented product and workmanship, free lessons on how to use the camcorder, quick repair

Additional consumer serviees when needed and a freephone number to call if they have problems or

services and benefits questions. To the consumer, all of these augmentations become an important part

built around the core of the total product.

and actual products. Therefore, a product is more than a simple set of tangible features. Consumers tend to see products as complex bundles of benefits that satisfy their

562 • Chapter 13 Brands, Products, Pat­Staging and Services

Figure 13.1

Three levels of product

needs. When developing products, marketers must first identify the core consumer needs that the product will satisfy, then design the actual product and finally find ways to augment it in order to create the bundle of benefits that will best satisfy consumers.

Today, most competition takes place at the product augmentation level. Successful companies add benefits to their offers that will not only satisfy, hut

also delighc the customer. For instance, hotel guests find chocolates on the pillow or a howl of fruit or a VCR with optional videotapes. The company is saying 'we want to treat you in a special way'. However, each augmentation costs the

company money, and the marketer has to ask whether customers will pay enough to cover the extra cost. Moreover, augmented benefits soon become expected benefits: hotel guests now expect cable television, trays of toiletries and other amenities in their rooms. This means that competitors must search for still more features and benefits to differentiate their offers.

Product Classifications

n on­durable product Before we examine individual product decisions, let us explain several product­ A consumer product iliat

classification schemes. Products can be classified according to their durability is niii­miilly consumed in

and tangibility Non­durable products are goods that are normally consumed one or a few uses.

quickly and used on one or a few usage occasions, such as beer, soap and food products. Durable products are products used over an extended period of time

durable product and normally survive for many years. Examples are refrigerators, cars and furni­ A consumer product thac

is usually used over an ture. Services are activities, benefits and satisfactions offered for sale which are

extended period of time essentially intangible and do not result in the ownership of anything. Examples

and [hat normally include haircuts, holiday packages and banking services. Marketers have also survives many uses.

divided products and services into two broad classes based on the types of customer that use them ­ consumer products and industrial products.

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