What is a product?
A product consists of 2 key components: tangible and intangible factors. Tangible factors are factors that can be seen/touch with physical features. Intangible factors are ones that we cannot interact with physically. Both tangible and intangible components of the product have to marry together to compliment one another. Some may argue that one may be more important than the other depending on the type of product, but it is ultimately still important to factor both in to better manufacture your product.
Anatomy of a product
The core product:
This refers to the actual benefit the consumer derives from using the product.
The tangible product:
This refers to products that have a greater focus on its physical features.
The augmented product:
Augmentation refers to the added value that marketers work into their products, such as: warranty, credit terms, after sales advice and support, customer service, etc. As much as the physical features of a product can be easily copied, augmentation is where you can differentiate yourself as it is much harder to copy and easier to differentiate.
Classification of products
B2C Market:
Convenience goods: goods that require little time for the consumer to purchase the item as it inherently provides little risk financially, socially, personally associated with these goods.
Shopping goods: These require more time and effort for the consumer to purchase as they incur a greater risk to purchase.
Speciality goods: These refer to luxurious goods that consumers often save up for and accept no other substitutes. They tend to incur large risks for the consumer.
Unsought goods: Goods that normally come to the attention of the consumer when an event (i.e. incident) takes place. These include, plumbing, maintenance services.
B2B Market:
Installations: These are central pieces of equipment, machinery, etc that are required and used in the production process. They are critical to the process and generally incur large upfront costs.
Accessories: These are part of the production process but are not central to it. These generally help smoothen or speed up the production process.
Raw materials: These are needed to physically produce the product in conjunction with machinery and its accessories.
Services: This includes cleaning and maintenance of your production equipment and facility. This will help prolong the longevity of the machines and location used for production.
Source: Develop Your Marketing Skills by Neil Richardson, Ruth Gosnay
Written by Darien D.
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