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Difference between revisions of "Product"

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*A product needs a name: a name that people remember and relate to. A product with a name becomes a brand. It helps it stand out from the clutter of products and names.
 
*A product needs a name: a name that people remember and relate to. A product with a name becomes a brand. It helps it stand out from the clutter of products and names.
 
*A product should be adaptable: with trends, time and change in segments, the product should lend itself to adaptation to make it more relevant and maintain its revenue stream.<ref>What a product needs to be [https://economictimes.indiatimes.com/definition/product Economics Times]</ref>
 
*A product should be adaptable: with trends, time and change in segments, the product should lend itself to adaptation to make it more relevant and maintain its revenue stream.<ref>What a product needs to be [https://economictimes.indiatimes.com/definition/product Economics Times]</ref>
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== The Four Levels of the Product<ref>What are the four levels of the product? [https://courses.lumenlearning.com/boundless-marketing/chapter/what-is-a-product/ Lumen Learning]</ref> ==
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The four levels of a product include: core, tangible, augmented, and promised. Core, tangible, augmented and promised products feature characteristics (i.e., the total product concept or offer), which includes everything a consumer evaluates before making a purchase. These factors can include:
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*Price
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*Store environment and/or surroundings
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*Brand promise/ value
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*Advertising and marketing activities
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*Buyer’s past experience
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*Accessibility or convenience
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*Brand reputation
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*Packaging
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[[File:Product_Levels.png|400px|The Four Levels of the Product]]<br />
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source: Lumen Learning
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*We begin with the notion of '''core product''' which identifies what the consumers feel they are getting when they purchase the product. The core benefits derived when an overweight 45-year-old male purchases a $250 ten-speed bicycle is not transportation–it is the hope for better health and conditioning. In a similar vein, that same individual may install a $16,000 swimming pool in his backyard, not to obtain exercise, but to reflect the status he so desperately desires. Both are legitimate product cores. Because the core product is so individualized, and oftentimes vague, a full-time task of the marketer is to accurately identify the core product for a particular target market.
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*Once the core product has been indicated, the '''tangible product''' becomes important. This tangibility is reflected primarily in its quality level, features, brand name, styling, and packaging. Literally every product contains these components to a greater or lesser degree. Unless the product is one-of-a-kind (e.g. oil painting), the consumer will use at least some of these tangible characteristics to evaluate alternatives and make choices. In addition, the importance of each will vary across products, situations, and individuals. For example, for a 25-year old man, the selection of a particular brand of new automobile (core product = transportation) was based on tangible elements such as styling and brand name (choice = Corvette). In contrast, at age 45, the core product remains the same, but tangible components such as quality level and features become more important (choice = Mercedes).
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*The next level is the '''augmented product'''. Every product is backed up by a host of supporting services. The buyer often expects such services, so they will reject the core-tangible product if these are not available. Examples include restrooms, escalators, and elevators in the case of a department store, and warranties and return policies in the case of a lawn mower. For example, Dow Chemical has earned a reputation as a company that will go the distance to service an account. It means that a Dow sales representative will visit a troubled farmer after-hours in order to solve a serious problem. This extra service is an integral part of the augmented product and a key to their success. In a world with many strong competitors and few unique products, the role of the augmented product is clearly increasing.
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*The outer ring of the product is referred to as the '''promised product'''. Every product has an implied promise. An implied promise is a characteristic that is attached to the product over time. The car industry rates brands by their trade-in value. There is no definite promise that a Mercedes-Benz holds its value better than a BMW. There will always be exceptions. How many parents have installed a swimming pool based on the implied promise that their two teenagers will stay home more or that they will entertain friends more often?
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== See Also ==
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[[Product-as-a-Service (PaaS)]]<br />
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[[Product/Market Fit]]<br />
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[[Product/Market Grid]]<br />
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[[Product Data Management (PDM)]]<br />
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[[Product Design]]<br />
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[[Product Information Management (PIM)]]<br />
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[[Product Life Cycle]]<br />
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[[Product Lifecycle Management]]<br />
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[[Productivity]]<br />
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[[Software]]
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== References ==
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<references/>

Revision as of 21:18, 10 October 2019

Business Dictionary defines Product as "a good, idea, method, information, object or service created as a result of a process and serves a need or satisfies a want." It has a combination of tangible and intangible attributes (benefits, features, functions, uses) that a seller offers a buyer for purchase. For example a seller of a toothbrush not only offers the physical product but also the idea that the consumer will be improving the health of their teeth.
Law: A commercially distributed good that is (1) tangible personal property, (2) output or result of a fabrication, manufacturing, or production process, and (3) passes through a distribution channel before being consumed or used.
Marketing: A good or service that most closely meets the requirements of a particular market and yields enough profit to justify its continued existence. As long as cars are manufactured, companies such as Michelin that produce tires fill the market need and continue to be profitable.[1]

  • A product needs to be relevant: the users must have an immediate use for it. A product needs to be functionally able to do what it is supposed to, and do it with a good quality.
  • A product needs to be communicated: Users and potential users must know why they need to use it, what benefits they can derive from it, and what it does difference it does to their lives. Advertising and 'brand building' best do this.
  • A product needs a name: a name that people remember and relate to. A product with a name becomes a brand. It helps it stand out from the clutter of products and names.
  • A product should be adaptable: with trends, time and change in segments, the product should lend itself to adaptation to make it more relevant and maintain its revenue stream.[2]


The Four Levels of the Product[3]

The four levels of a product include: core, tangible, augmented, and promised. Core, tangible, augmented and promised products feature characteristics (i.e., the total product concept or offer), which includes everything a consumer evaluates before making a purchase. These factors can include:

  • Price
  • Store environment and/or surroundings
  • Brand promise/ value
  • Advertising and marketing activities
  • Buyer’s past experience
  • Accessibility or convenience
  • Brand reputation
  • Packaging

The Four Levels of the Product
source: Lumen Learning

  • We begin with the notion of core product which identifies what the consumers feel they are getting when they purchase the product. The core benefits derived when an overweight 45-year-old male purchases a $250 ten-speed bicycle is not transportation–it is the hope for better health and conditioning. In a similar vein, that same individual may install a $16,000 swimming pool in his backyard, not to obtain exercise, but to reflect the status he so desperately desires. Both are legitimate product cores. Because the core product is so individualized, and oftentimes vague, a full-time task of the marketer is to accurately identify the core product for a particular target market.
  • Once the core product has been indicated, the tangible product becomes important. This tangibility is reflected primarily in its quality level, features, brand name, styling, and packaging. Literally every product contains these components to a greater or lesser degree. Unless the product is one-of-a-kind (e.g. oil painting), the consumer will use at least some of these tangible characteristics to evaluate alternatives and make choices. In addition, the importance of each will vary across products, situations, and individuals. For example, for a 25-year old man, the selection of a particular brand of new automobile (core product = transportation) was based on tangible elements such as styling and brand name (choice = Corvette). In contrast, at age 45, the core product remains the same, but tangible components such as quality level and features become more important (choice = Mercedes).
  • The next level is the augmented product. Every product is backed up by a host of supporting services. The buyer often expects such services, so they will reject the core-tangible product if these are not available. Examples include restrooms, escalators, and elevators in the case of a department store, and warranties and return policies in the case of a lawn mower. For example, Dow Chemical has earned a reputation as a company that will go the distance to service an account. It means that a Dow sales representative will visit a troubled farmer after-hours in order to solve a serious problem. This extra service is an integral part of the augmented product and a key to their success. In a world with many strong competitors and few unique products, the role of the augmented product is clearly increasing.
  • The outer ring of the product is referred to as the promised product. Every product has an implied promise. An implied promise is a characteristic that is attached to the product over time. The car industry rates brands by their trade-in value. There is no definite promise that a Mercedes-Benz holds its value better than a BMW. There will always be exceptions. How many parents have installed a swimming pool based on the implied promise that their two teenagers will stay home more or that they will entertain friends more often?


See Also

Product-as-a-Service (PaaS)
Product/Market Fit
Product/Market Grid
Product Data Management (PDM)
Product Design
Product Information Management (PIM)
Product Life Cycle
Product Lifecycle Management
Productivity
Software


References

  1. Defining Product Business Dictionary
  2. What a product needs to be Economics Times
  3. What are the four levels of the product? Lumen Learning