Product

The goods and services a company sells are its product. A product can be defined in terms of features, design, size, packaging, service type, return policies, and warranties, together intended to meet the customer’s needs.

How it works

Consumers can be said to buy benefits rather than products. For the marketer, the product itself is that benefit to the consumer, as packaged and presented.Marketers identify the goods and services they sell in three or five product levels, with the benefit at the core. The marketer’s job is to translate and communicate each product level as an offer to the consumer.

Total product concept: three product levels

From a marketer’s perspective, a product is more than the end commodity bought by a customer. It is a total product concept with several layers of benefit, and these must be conveyed to the consumer.

Actual product Packaging, brand name, quality level, design, and additional features that set it apart from rival products

Augmented product Additional benefits, such as delivery and credit, warranty, after-sales service

Core product Product’s basic function and its core benefit to consumer

Variation: five product levels

This variation on the total product concept is more detailed. It introduces two more levels by breaking down the actual product level into a generic and an expected product, and also includes an extra level of benefit—the potential product.

Core product Product’s core benefit to consumer

Generic product Basic functional benefits

Expected product Additional desirable benefits

Augmented product Extra features and benefits

Potential product Future, improved version

NEED TO KNOW

❯ Personal branding Promoting oneself as a product with a distinct brand personality

❯ Fast-moving consumer goods (FMCGs) Sold quickly and at relatively low unit cost, such as food and household products

42%
of new product launches can be
expected to fail