Understanding Products

Product
Product and
and its
its Components
Components
 What is a Product?
• Any thing offered for use or consumption, to satisfy a need or
want, usually at a value or price

• Could be a physical thing, person, place, entity, experience, idea,

concept,…..

• Has a set of attributes which may be:

– Tangible: shoe, clothes, phone, TV, car, pen,………
– Intangible: insurance, software, Online game, quiz, movie, ads,…..
– Mixed: room freshener, haircut, vacation, car repair
 Elements of a Product
Price, Value
Augmented Product
Credit
Delivery Installation
Branding
Services Warranty
Tangible Product
Usability Variant Packaging

Design Quality

Features Quantity
Core Product

Core Function
(core attributes & benefit,
need satisfaction)
 What is a Service?

• Service is an act or performance offered for consumption or use

to satisfy a need or want, usually at a value or price

• Mostly intangible or experiential in nature

• Has a set of attributes which may be:

– Inseparable - difficult to separate production from consumption

– Variable - often vary in outcome (non-standardized)

– Perishable - cannot be stored

The Product – Service Spectrum

Pure Product Service Pure

Product + Service + Product Service

Soap TV Air Travel Counselling

Shampoo Car Education Dry Massage
Shoe Mobile Phone Hospital Care Taxi Ride
Toothpaste Fast Food Retail Banking Electricity
Juice Software Hair Massage TV News
…….. …….. ……… …….
…….. …….. ……… ……..

More for self-use, self-consumption More people- or equipment-delivered

More ‘physical’ in nature More ‘experiential’ in nature
More ‘standardized’, less customizable More ‘customizable’, Less standardized
 Evaluating Products / Services
Products
• Features (desirability)
• Benefits (relevance)
• Performance (satisfaction)
• Value (affordability)
• Quality (reliability, durability,…)
• Aesthetics (look, appeal,…)
• Usability (convenience, simplicity,…)
• Serviceability
• Safety
Services
• Features (desirability)
• Benefits (relevance)
• Performance (satisfaction)
• Value (affordability)
• Quality (punctuality, experience,…)
• Assurance (credibility, trust,….)
• Responsiveness
• Tangibility (evidence, reference,…)
• Safety
 Classifying Products

Products
Based on intended user
of the product

Consumer Products Business Products

Based on search effort & time Based on shelf life of Based on purpose & use
spent by consumer the product of the product
Industrial
Convenience Perishable Products
Products Products

Raw Material
Shopping Wearable Products
Products Products

Supplies
Speciality Durable Products
Products Products
Understanding Products

Product
Product Personality
Personality &
& its
its Components
Components
 What is Product Personality?

• The ‘symbolic’ meaning of a product (beyond its functional utility)

• Symbolic meaning may be:

– Social (status and group membership)
– Individualistic (the self-concept, e.g., desired self image)

• People prefer products that match / are consistent with their

‘desired’ self-concept or social status
 Components of Product Personality
na Us
rs o er
P e Design
Packaging Sta
e r t us
Us
(shape, size,…)
Aesthetics
Protection
Appeal
Handling
Branding
Meaning Imagery
Symbols
Colour
Labelling Positioning Meaning

Associated Features Logo

Identity Value
Colour (Price) Aesthetics
Design Name
(shape, size,…)
Usability
Features
Core Product Quality

Core Function
(core attributes & benefit,
need satisfaction)
Understanding Products

Products
Products as
as Brands
Brands
Brand = Product + Distinct Identity
& Meaning
Distinct Name
Distinct Visual Identity
Distinct Promise (benefit / experience)

Products are often similar. It is their brand identities that differentiate them.
 How are Brands different from Products?

Products Brands
• Functional • Emotional/Functional

• Concrete, Rational • Conceptual, Perceived

• Describes “What” • Describes “What” & “Who”

• Generic • Unique, Distinct

• Limited life span • Unlimited life span

• Transaction oriented • Relationship oriented

• Easy to copy • Can’t be copied

An Example
Brands

Coke
• Happiness, togetherness, memories,
Product Americana, the colour “red”, “the real
thing”
Cola
• A refreshing , Pepsi
effervescent, sugary, • Young, youthful, aspirations, trendy,
carbonated beverage more out of life, next generation

Thums Up
• Strong, macho, daring, bold, grown up,
thrill, adventure
People don’t taste drinks. They taste images.
- David Ogilvy
 Developing Product - Brand Synergy
“Benefit Laddering”

Detergent Car Diaper

Product Feature Strong detergent Powerful engine Special pad

So what? So what? So what?

Product Attribute Better wash More horsepower Absorbs better

So what? So what? So what?

Rational Benefit Cleaner clothes High Speed Stays dry

So what? So what? So what?

Emotional Benefit Look smart Thrill Happy baby

 Developing Product - Brand Synergy
“Using Benefit Laddering to derive Competitive Differentiation”

Soap A Soap B Soap C Soap D

Product Level Cleans my skin Cleans my skin Cleans my skin Cleans my skin

So what?
Feel fresh Glowing skin Removes germs Masks body odor

So what?
Positive energy Look beautiful Better hygiene Smell & feel good

Brand
So what?
Level Refreshed mind Get attention More protection More confident

Free & Happy Feel Appreciated Better health Better self-esteem

 Dove
Dettol

Lux
Lifebuoy

Fair & Lovely Liril