Chapter 1 Flashcards
Defining the product
It is the means through which a company satisfies the customers’ needs. Product are not only fast-moving consumer goods, like sweets and electronics with physical properties, but can also involve a intangible service, a location, a person or an idea. Most products are a combination of two or more of the above.
Tangible Products
Something that is physical and that can be touched.
Intangible Products
Something that can not be touched.
The four levels of a product: Product concept
The core product The tangible product The augmented product The product image
The core product
At the centre of the product concept is the core product, which is the most basic level of the product. The core product is the part of the product that the customer actually buys. It represents the main benefit or service the product gives the customers in order to satisfy their needs.
The tangible product
tangible product is the desired benefits the consumer sees in the core product, which must now be turned into product attributes. Product attributes can be divided into five categories, namely quality level, product features, styling, y brand name and packaging.
Product attributes can be divided into three categories
product quality, product features and design.
Product quality
Product quality is one of the product positioning tools used by marketers. A product should not only provide the quality that customers want consistently but also support the product with quality services.
Product features
Product features are things that are added to a product to improve it and make it more competitive.
Design
Design is another product attribute that adds value to a product. For example, power tools such as drills and electric screwdrivers are designed with a rechargeable battery instead of a power cord. This design does not restrict the customers, which means that they can move around more freely when using these tools, which in turn adds value to the product.
The augmented product
The augmented product is the third element of the product concept. It comprises sales support features, such as delivery, installation, warranties and support services. It is the additional features or services the customer receives when buying the product/service.
Product image
This is the fourth dimension of a product and it arises from the tangible and augmented features present in the product, as well as from the other marketing activities performed by the company.
