Introduction to Products in Marketing

UNDERSTANDING PRODUCTS
 A product is anything that can be offered to a market for attention, acquisition, use, or consumption that
might satisfy a want or need.
 In the context of marketing, a product refers to a tangible or intangible offering that is created, designed,
or developed to satisfy a specific need, want, or demand of a target market. Products are what a company
offers to its customers for attention, acquisition, use, or consumption. The term "product" encompasses
more than just physical goods; it also includes services, experiences, and ideas.

TYPES OF PRODUCTS
 Tangible goods
 Services
 Experiences
 Ideas

1. Tangible Goods:
Tangible goods are physical, touchable products that you can see and feel.
Examples:
 Smartphones (e.g., iPhone, Samsung Galaxy)
 Apparel (e.g., Nike shoes, Levi's jeans)
 Automobiles (e.g., Toyota Corolla, Ford Mustang)
 Consumer electronics (e.g., Sony TV, HP laptop)

2. Services:
Services are intangible offerings that provide a benefit or solution to customers.
Examples:
 Healthcare services (e.g., doctor's visit, dental check-up)
 Banking services (e.g., savings account, mortgage)
 Transportation services (e.g., Uber, airline travel)
 Education services (e.g., tutoring, online courses)

3. Experiences:
Experiences involve events or activities that create memorable encounters.
Examples:
 Vacation experiences (e.g., trip to Paris, hiking in the Grand Canyon)
 Concert experiences (e.g., attending a live music concert)
 Theme park experiences (e.g., Disneyland visit)
 Dining experiences (e.g., gourmet dinner at a fine restaurant)

4. Ideas:
Ideas are concepts or opinions that can be marketed to influence behavior or create awareness.
Examples:
 Public service campaigns (e.g., anti-smoking campaigns)
 Social movements (e.g., environmental conservation campaigns)
 Educational programs (e.g., promoting literacy in underprivileged areas)
 Government initiatives (e.g., encouraging vaccination)

CLASSIFICATIONS OF PRODUCTS
Products can be classified into various types based on different criteria. Here are some common classifications of
products:
A. Tangible vs. Intangible Products:

 Tangible products - are physical goods that can be touched, seen, and felt. Examples include smartphones,
clothing, and vehicles.
 Intangible products, also known as services, - are non-physical offerings that provide a benefit without being
a physical object. Examples include consulting, healthcare, and education.

B. Consumer Products:
Consumer products are items purchased by individuals or households for personal use. They can be further
categorized into:
 Convenience Products: Everyday items consumers purchase frequently with minimal effort, such as
toothpaste, snacks, and bottled water.
 Shopping Products: Products consumers compare and shop for based on features, quality, price, and style.
Examples include clothing, appliances, and electronics.
 Specialty Products: Unique products with specific characteristics or brand identification, and consumers show
a strong preference or loyalty. Examples include luxury watches, high-end cars, and designer clothing.
 Unsought Products: Products that consumers do not actively seek, often because they are unaware of the need
or they require significant marketing efforts to generate interest. Examples include life insurance and funeral
services.

C. Industrial Products:
Industrial products are purchased by businesses and organizations for further processing or for use in conducting
their operations. They can be categorized into:

D. Raw Materials: Basic materials used in the manufacturing process, such as metals, wood, and chemicals.

E. Component Parts and Materials: Products used in the assembly of other products, like engines for cars or
computer chips for electronics.

F. Capital Equipment: Large, expensive, long-lasting products used in production or operations, such as machinery,
buildings, and vehicles.

G. Supplies and Business Services: Consumable goods used in daily operations, including office supplies,
maintenance services, and software.

H. Augmented Products:
Augmented products include the core product along with additional features, benefits, or services that enhance its
value and satisfaction for customers. For instance, a car purchase might include warranties, maintenance services,
and customer support.

I. Branded Products:
Branded products are products that carry a specific brand name and identity, often associated with a particular
company or manufacturer. Branding helps differentiate products, build customer trust, and establish a distinct
market presence.

J. Generic Products:
Generic products are unbranded or store-brand products that do not carry a specific brand name. They are typically
more affordable than branded products and aim to provide cost-effective alternatives to consumers.

These classifications help businesses and marketers tailor their strategies for product development, marketing, and
positioning based on the nature and characteristics of the products they offer.

HERE ARE THE MAIN COMPONENTS OF A PRODUCT:

CORE PRODUCT: The core product represents the primary benefit or fundamental solution that a product provides
to meet a customer's need or want. It is the essence of what the customer is truly buying and the reason they are
motivated to make a purchase. This level addresses the question, "What is the fundamental problem or desire this
product is addressing for the customer?"
Example: For a smartphone, the core product is communication, information access, and staying connected with
others.

ACTUAL PRODUCT: The actual product is the tangible and visible aspect of the product that surrounds the core. It
includes all the features, design, packaging, branding, and attributes that make up the physical or experiential
product. It embodies the characteristics that customers can see, touch, and experience when using the product.
Example: For a smartphone, the actual product encompasses the device itself, its design, the user interface, camera,
display, and other technical specifications.

AUGMENTED PRODUCT: The augmented product includes additional elements or offerings beyond the core and
actual product. These extras are provided to enhance the overall product experience and provide added value to the
customer. They are not essential to the basic functionality but serve to differentiate the product and create a
competitive advantage.
Example: For a smartphone, the augmented product may encompass warranties, customer service, app stores,
accessories, software updates, and special offers.

Understanding and strategically managing these levels of a product is crucial for marketers. It allows them to tailor
their marketing strategies effectively, not only addressing the basic needs but also enhancing the overall product
offering to meet customer expectations and create a stronger market presence.

Core Product (The Taste):

The core product is the main reason why someone buys the ice cream — the delicious taste. It represents the
fundamental benefit or solution that the product provides to meet a customer's need or desire. In our ice cream
example, it's all about satisfying the craving for a sweet and creamy treat.

Actual Product (The Ice Cream Cone):

The actual product is what you can see, touch, and experience. It's the tangible form of the product that surrounds
the core. For our ice cream, this would be the cone, the ice cream itself, the flavors, the colors, and the texture. It's
everything that makes the experience enjoyable and memorable.

Augmented Product (The Extras):

The augmented product is like the extra toppings or special offers that enhance the overall ice cream experience. It
includes additional features and benefits that go beyond the basic ice cream, such as sprinkles, whipped cream, or a
special discount. In a broader sense, it can involve warranties, customer service, or delivery options—anything that
adds extra value and satisfaction to the customer beyond just the ice cream itself.

So, think of it this way: the core product is the basic need or desire being fulfilled (the delicious taste of ice cream),
the actual product is the tangible, visible form that provides the experience (the ice cream cone and its features), and
the augmented product is the extra goodness that makes the experience even better (toppings and special offers).

Let's explore examples of core products, actual products, and augmented products for a few different offerings to
illustrate these concepts clearly:

1. Smartphone (e.g., Apple iPhone):

 Core Product: The core product is the basic benefit the customer seeks, such as communication, internet
access, and the ability to download applications and games.
 Actual Product: The actual product includes the physical attributes and features of the iPhone, such as the
design, brand logo, screen size, camera quality, operating system, and user interface.
 Augmented Product: The augmented product adds value beyond the core and actual product. For the
iPhone, this might include services like warranty, technical support, iCloud storage, Apple Music
subscription, access to exclusive apps, and free software updates.

2. Airline Travel (e.g., Delta Airlines):

 Core Product: The core product is the ability to travel from one location to another via air transportation.
 Actual Product: The actual product encompasses the tangible aspects such as the aircraft, seating
arrangements, in-flight entertainment, meals, and the airline's branding.
 Augmented Product: The augmented product involves additional services like priority boarding, frequent
flyer miles, customer service assistance, travel insurance, and exclusive airport lounges for premium
passengers.

3.Fast Food Restaurant (e.g., McDonald's):

 Core Product:
 The core product is the basic need fulfillment for hunger and convenience in obtaining quick meals.

 Actual Product:
 The actual product comprises the tangible elements like the food items (burgers, fries, beverages),
the restaurant ambiance, the packaging, and the overall service experience.

 Augmented Product:
 The augmented product includes additional services like drive-thru convenience, mobile ordering,
free Wi-Fi, loyalty programs, and birthday promotions, enhancing the overall customer experience.