Levels of product
The core product is not the tangible physical product. We can’t touch it. That’s because the core product is the benefit of the product that makes it valuable to us. So with the car example, the benefit is convenience the ease at which we can go where we like, when we want to. Another core benefit is speed since we can travel around relatively quickly. Actual product
The actual product is the tangible, physical product. We can get some use out of it. Again with the car, it is the vehicle that we test drive, buy and then collect. We can touch it. The actual product is what the average person would think of under the generic banner of product. Augmented product
The augmented product is the non-physical part of the product. It usually consists of lots of added value, for which we may or may not pay a premium. So when we buy a car, part of the augmented product would be the warranty, the customer service support offered by the car’s manufacturer and any after-sales service. The augmented product is an important way to tailor the core or actual product to the needs of an individual customer. The features of augmented products can be converted in to benefits for individuals.
Consumer products are product and services bought by final consumers for personal consumption. Four types of consumer products: 1. Convenience products: Convenience products are consumer products and services that customers usually buy frequently as soon as they feel the need for them and with a minimum of comparison and buying effort. They require minimum or no planning before the purchase. Convenience products are usually low priced. Examples include laundry detergent soft drinks, cigarettes, chocolates, candy and fast food. 2. Shopping products: Shopping products are less frequently purchased consumer products and services that customers compare carefully on suitability quality price and style. When buying shopping products and services consumers spend much time and effort in gathering information and making comparisons. Examples include furniture, clothing, used cars, jewelry and hotel and airline services. 3. Specialty products: Specialty products are consumer products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort. They are more expensive than convenience products and are not purchased frequently. Examples include specific brands of car, designer clothes and household appliances like TVs refrigerators. 4. Unsought products: Unsought products are consumer products that the consumer either does not know about or knows about but normally think of buying. Examples include life insurance, donations for charity, blood donation to hospitals or Red Cross.
A product bought by individuals and organization for further processing or for use in conducting a business. Three categories of industrial products: Materials and parts:
Materials and parts include raw materials manufactured materials and parts. Raw materials consist of farm products (cotton, livestock and fruits) and natural Products (fish, lumber, iron). Manufactured materials and parts consist of component materials (iron, cement, wires) and component parts (small motors, tires, castings) Capital items:
Capital items are industrial product that aid in the buyer production or operation, including installations and accessory equipment. Installations consist of major purchases such as buildings (factories, offices) and fixed equipment (generators, drill presses). Accessory equipment includes portable factory equipment and tools (hand tools) and office equipment (computers, desks). Supplies and services:
Supplies are the convenience products of the industrial field because they are usually purchased with a minimum of effort or comparison. Supplies include operating supplies (coal, paper, pencils) and repairs maintenance items...
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