First task; the most fundamental level is the core product, which seeks the

answer to the question: What is the buyer really buying?

The core product forms the nucleus of the total product, indicates the problem-
solving features or core benefits that consumers look for on the product. benefit of
the product that make it valuable to each specific consumer

A toaster needs to toast, micro-oven needs to cook the food – no matter how many
smart features a company gives with them. A smart toaster or micro-oven will fail
in the market if it is not adequate to cook meals. A new phone for communicate
efficiently lipistick - attractive

So, in designing a product, marketers must start with defining the core of benefits,
that is, the functional features the product will possess

The 2nd task of a marketer is to build an actual product surrounding the core
product.

Actual products usually have as many as five characteristics; a quality level,

features, design, a brand name, and packaging. For instance, Sony’s – Eye Master
Television set is an actual product. Its name, parts, styling, features, packaging,
and other attributes have all been combined carefully to deliver the core benefit -
entertainment through watching TV programs.

Finally, third task; the marketer must build an augmented product around
the core and actual products by adding extra consumer services and benefits.
Sony must offer more than just a television set.
It must provide consumers with a complete solution to their operating problems.
Sony and its dealers also might give buyers a warranty on spare parts and better
quality, free lessons on use methods, quick repair services when needed, and a
telephone number to call if they have any query.

Consumers consider all of these augmentations as an important component of the

total product. These added value may also allow the seller to command a premium
price.

Therefore, a product is something more than a combination of tangible features. To

the consumers, products are complex bundles of benefits that satisfy their needs.

Case Study- 1 PS5

 Core
- The core product is
intangible, which means it is
not a physical product that can
be
touched. It is what we refer to
as the benefit of the product
that make it valuable to
each specific consumer.
- The benefit of the PS5 for
customers is that it provides
them with a platform to
interact with friends or play by
themselves to unwind. It
allows users to get access to
a massive gaming platform at a
discount as compared to the
traditional PC gaming.

 Core
- The core product is
intangible, which means it is
not a physical product that can
be
touched. It is what we refer to
as the benefit of the product
that make it valuable to
each specific consumer.
- The benefit of the PS5 for
customers is that it provides
them with a platform to
interact with friends or play by
themselves to unwind. It
allows users to get access to
a massive gaming platform at a
discount as compared to the
traditional PC gaming.
 Core
- The core product is
intangible, which means it is
not a physical product that can
be
touched. It is what we refer to
as the benefit of the product
that make it valuable to
core - The core product is intangible, which means it is not a physical product that can be
touched. It is what we refer to as the benefit of the product that make it valuable to each
specific consumer. - The benefit of the PS5 for customers is that it provides them with a
platform to interact with friends or play by themselves to unwind. It allows users to get
access to a massive gaming platform at a discount as compared to the traditional PC gaming.
Actual - This refers to the PS5 itself, the physical product. Gamers will use this product to
play games and even be able to use platforms such as Netflix to stream movies to watch.
Augmented - Refers to the non-physical part of the product. Augmented consists of added
value apart from the product itself. In the case of PS5, it refers to the warranty given – 1year
from date of purchase. Another value added service would be the PlayStation Network, a
premium subscription service which allows users to get access to a variety of benefits -
enhanced gaming and social features (PlayStation Plus), movie streaming, rentals and
free purchases (PlayStation Video), music streaming(PlayStation Music, powered by
Spotify) and a cloud gaming service (PlayStation Now)

Discuss the three levels of product offered by "Kindle".LevelsofProduct- All three levels of
product are implemented in order to create CUSTOMERVALUE and create the most
satisfying CUSTOMER EXPERIENCE.
Core Customer Value-What is the customer REALLY buying? (Blackberry phone owners are
buying"freedom" or "staying connected".)
oThe core customer value for Amazon's Kindle lies in its "Convenience" and "Simplicity".
Customers who purchase the Amazon Kindle E-Book Reader are not only buying a digital
book reading device, they are buying newfound "convenience" for purchasing and reading
books -"Kindle has revolutionized the way we purchase and read books, by making it mobile,
easy and intuitive".
Actual Product -Develop the product and/or service features, design, quality level, brand
name and packaging. These attributes are combined to deliver the "core customer value".
For the Amazon Kindle, the actual product is the e-book reader itself; A high-quality device
which allows customers to experience the Kindle's core customer value - "convenience". It
allows access to the self-proclaimed "largest online bookstore", and direct purchases to
the device -where such purchases from this online bookstore directly to the device is not
available for competing products.
o”Convenience” is also in the software and system Whispernet used by Amazon. It boasts
that consumers are able to be in any part of the world and download an English-language
book within60 seconds, providing free 3G global coverage.
Augmented Product -Additional consumer services and benefits, such as After-sale service,
warranty, product support, delivery and credit.
Kindle books have a seven-day return policy.
The website provides a lengthy list of troubleshooting topics and issues. It also provides
free software updates to ensure all consumer devices are functioning to its maximum
performance capabilities to deliver superior customer value and satisfaction

 Product quality
 Product features
 Product design
Product quality decision
Quality of the product refers to how well the product has been made. A high
quality product and typically work better, be more reliable, look more stylish,
the easy to use, and consist of higher quality components/ingredients.

While we often associate the concept of quality with a luxury product, such as
a car or a watch, the concept of quality can exist across any type of product.
For example, for a candy bar – the product would incorporate very high quality
chocolate and target occasional consumers or it could consist of low quality
chocolate possibly targeting children.

Stronger brands tend to have the perception of having higher-quality

products. Therefore, you’ll find that most well-known brands try to avoid
reducing quality in order to cut costs – however this may occur at times.

We need to avoid the perception that higher-quality products will

necessarily do better in the marketplace. Indeed there are large numbers
of very budget conscious consumers in the market, who will make
decisions on price and deal and would be attracted to lower quality
products.

For example, they can share it may be willing to fly a lower quality airline (that
is, with no food provided and with smaller seating) if it means saving a
reasonable amount of money.

The extent of quality in the product and its components/features

becomes a strategic choice. As would you expect, a higher quality product
allows for a price premium to be charged. However, this also has the impact of
reducing the overall sales volume. And of course, higher-quality products will
have a higher unit cost which may impact overall profitability.
The decision on quality is somewhat of a competitive decision which will
determine at what and of the market that the product will compete.
Therefore, the overall product quality decision needs to be aligned to the
overall positioning of the brand and the needs of the target market.

Product features decision

As mentioned above, product features refer to the actual components or
ingredients of the product. Using our hamburger example again – one fast
food chain may have a very basic hamburger with just bread, meat and
sauce – where another fast food chain may offer a more complex
hamburger design with 15 different ingredients (including sauces and
salads).

Using another example, let’s look at a credit card offered by bank. One
bank may have a very “basic” credit card with no flexibility, whereas
another bank may have a more “complex” credit card that is linked to
other accounts, has lots of flexibility, and has a supporting rewards
program.

And of course, the inclusion of specific product features will mean that
the product will be designed for needs of a particular target market. If we
continue the hamburger example above, the very simple hamburger would
probably be targeted at children or at consumers just after a snack – whereas
the more complex hamburger would be targeting people who are looking for a
meal and are concerned with taste and perhaps nutrition.

Product design decision

Final element in the product attribute decision is the overall product
design. Design of the product refers to how the product looks, functions
and is put together.

Product design has become more prominent in recent years primarily due to
the success of Apple with their design of their smart phones in particular. If
you think about an Apple smart phone, they work hard on physical look and
the ease of using various features.

Likewise, with our hamburger example, how the hamburger looks (particularly
in the menu board) is quite important in attracting potential sales.