Crafting the Offer: Products
Understanding Products
As we learned in Chapter 1, a product is anything that can be offered to a market that might satisfy a need, want, or demand. It encompasses not only physical goods but also services, experiences, events, persons, places, properties, organizations, information, and ideas.
Consider a product as a bundle of attributes that can take various forms, including ideas, physical goods, services, or combinations of these.
Product Classification Models
Several classification models have been developed to help understand the complex and varied nature of products[1]. Below are two common classification models for products:
- Levels of a product
- Types of consumer products
Levels of a Product
Levels of a product is a framework to understand the different layers of value a product offers to customers. The four levels are:
- Core Product: The fundamental benefit or value that the consumer receives from the product. It addresses the primary need or problem the product solves.
- Examples: For a smartphone, the core product is the ability to communicate and access information. For a bicycle, the core product might be improved health and fitness, as it provides exercise.
- Tangible Product: Includes the physical attributes and features of the product that can be seen, touched, or measured, such as design, features, brand name, and packaging.
- Examples: For a pair of jeans, the tangible product includes the fabric, style, colour, and brand. For a car, the tangible product includes the vehicle itself, its design, features like air conditioning, and the brand name.
- Augmented Product: Includes additional services and benefits that enhance the product’s value, such as warranties, customer service, and delivery options.
- Example: For a car, the augmented product might include a warranty, free maintenance, and roadside assistance.
- Promised Product: Involves the long-term benefits and experiences associated with the product, including brand reputation and customer satisfaction.
- Example: For a luxury watch, the promised product includes prestige, status, and reliability over time.
Example
An Airline Ticket from Montreal to Miami
The core product can vary significantly for different market segments, even when the tangible product remains the same. Using an airline ticket to Miami as an example, we can illustrate how the core product differs based on the needs and motivations of different target markets.
| Aspect | Business Traveler |
Leisure Traveler |
|---|---|---|
| Motivation to Buy | “I need to be in Miami for a meeting.” | “I need a break from my stressful life.” |
| Core Product | Transportation and productivity | Escape and peace of mind |
| Tangible Product | Airline ticket from Montreal to Miami | Airline ticket from Montreal to Miami |
| Augmented Product |
|
|
| Promised Product | Success and convenience, as the traveler expects to arrive on time and be prepared for their business meeting. | Happiness and relaxation, as the traveler anticipates a stress-free and enjoyable trip that helps them unwind and rejuvenate. |
Types of Consumer Products
Types of consumer products classifies consumer products based on consumer buying behaviour, price, and product characteristics. The four main types are:
- Convenience Products: Typically low-cost, frequently purchased items that require minimal effort for consumers to acquire. They are widely available in locations like convenience stores, supermarkets, and drug stores to provide easy access for shoppers. The key characteristics of convenience products are their standardized nature, low prices, consistent demand, and impulse-driven purchases.
- Examples: Snacks, newspapers, and bottled water.
- Shopping Products: Products purchased less frequently and involve more planning and comparison. Consumers evaluate different options based on price, quality, and style.
- Examples: Clothing, cars, travel packages, electronics, appliances, and furniture.
- Specialty Products: Unique items that consumers specifically seek out and are willing to make a special effort to purchase. These products often have unique characteristics or brand recognition that set them apart.
- Examples: Luxury cars, gourmet dining experiences, custom made items, designer handbags, and high-end electronics.
- Unsought Products: Items that consumers do not actively seek out or think about purchasing until a specific need arises. They often require significant marketing efforts to generate awareness and interest.
- Examples: Life insurance, funeral services, legal services, and emergency services.
Examples
Types of Consumer Products
Like our earlier airplane ticket example, consumer product classifications can vary for different market segments, even when the tangible product remains the same. This variation is primarily due to differences in consumer behaviour, preferences, and purchasing motivations within each segment. Below are some examples.
Convenience Products: For one segment, a product might be considered a convenience item due to its frequent purchase and low involvement in the buying process. For example, a basic smartphone might be a convenience product for tech-savvy consumers who regularly upgrade their devices without much thought.
Shopping Products: The same smartphone could be a shopping product for another segment that is more price-sensitive or less familiar with technology. These consumers might spend more time comparing features, prices, and brands before making a purchase decision.
Specialty Products: For a segment that values brand prestige or specific features, the smartphone might be classified as a specialty product. This could apply to consumers who are loyal to a particular brand or those who seek out the latest high-end models for their unique features.
Unsought Products: In some cases, the smartphone might be an unsought product for consumers who do not actively seek it out or are unaware of its benefits until a specific need arises, such as a sudden requirement for remote work or online learning.
The classification of a product can change based on how different market segments perceive its value, necessity, and desirability. This highlights the importance of market segmentation in developing targeted marketing strategies that address the specific needs and behaviours of each consumer group.
Media Attributions
- Figure 1: “Levels of a product” [created using Napkin.ai] by the author is under a CC BY-NC-SA 4.0 license.
- Figure 2: “A large airplane flying in the sky” by Adam Khan (2022), via Unsplash, is used under the Unsplash license.
- Figure 3: “Types of consumer products” [created using Napkin.ai] by the author is under a CC BY-NC-SA 4.0 license.
- Figure 4: “Quebec ville, Canada 06” by Wilfredor (2017), via Wikimedia Commons, is used under a CC BY-SA 4.0 license.
- Kotler, P., Keller, K. L., & Chernev, A. (2021). Marketing management (16th ed.). Pearson Education Limited. ↵
Anything that can be offered to a market that might satisfy a need, want, or demand — encompassing physical goods, services, experiences, and ideas.
A framework to understand the different layers of value a product offers to customers, including core, tangible, augmented, and promised benefits.
The fundamental benefit or value that the consumer receives from the product, addressing the primary need or problem the product solves.
The physical attributes and features of the product that can be seen, touched, or measured.
Additional services and benefits that enhance the product's value, such as warranties, customer service, and delivery options.
The long-term benefits and experiences associated with the product, including brand reputation and customer satisfaction.
Classification of products based on consumer buying behavior, including convenience, shopping, specialty, and unsought products.
Low-cost, frequently purchased items that require minimal effort for consumers to acquire.
Products purchased less frequently that involve more planning and comparison.
Unique items that consumers specifically seek out and are willing to make a special effort to purchase.
Products that consumers do not actively seek out until a specific need arises.
