Product anatomy

Product definition

A product is a physical good, service, idea, person or

place that is capable of offering tangible and intangible
attributes that individuals or organisations regard as so
necessary, worthwhile, or satisfying that they are
prepared to exchange money, patronage or some other
unit of value in order to acquire it.
 The anatomy of a product

Figure 7.1
 Product layers

All four layers of a product contribute to the buyer’s

satisfaction.

The outer two depend on the core product to determine

how they are realised.
 Product based classifications

• Durable products - last for many uses and over a long

period before having to be replaced.
• Non-durable products - can be used once or a few
times before having to be replaced.
• Service products - intangible products comprising
activities, benefits or satisfactions that are not embodied
in physical products, e.g. financial services, holidays,
etc.
 User based classifications: consumer goods/services

• Convenience goods - relatively inexpensive, frequent

purchases which respond to routine response buying
situations.
• Shopping goods - represent more of a risk and an
adventure to consumers.
• Speciality goods - high risk, expensive and infrequently
purchased products.
• Unsought goods - e.g. sudden emergencies.
 User based classifications: B2B goods/services

• Capital goods - buildings and fixed equipment that

contribute to production.
• Accessory goods - items that give peripheral support to
the production process.
• Raw materials.
• Semi-finished goods.
• Components and parts.
• Supplies and services.
 The product mix

The sum of all the products and variants offered by an

organisation.
The product mix can be split into the following:
• Product lines.
• Product items.
• Product line length.
• Product line depth.
• Product mix width.
 Importance of branding

A brand is any name, design, style, words or symbols,

singly or in combination that distinguish one product
from another in the eyes of the customer.

Brands are used by people to establish their status far more

than religion or political party.
 Branding

• An important element of the tangible product.

• In consumer markets can link items within a product line.
• Can help in the development of a new product.
• Creates and communicates a three dimensional
character of a product that is not easily duplicated by
competitors.
 The UK’s top ten brands 2001

Table 7.1
Source: adapted from data compiled by AC Nielsen, a VNU company, Hiscock (2001).
 Branding terms

• Brand name - word or illustration that distinguishes one

seller’s goods from another.
• Trade name - the legal name of an organisation, which
may or may not relate directly to the branding of its
products.
• Trade mark - brand name, symbol, or logo which is
registered and protected for the owner’s sole use.
• Brand mark - the element of the visual brand identity
that does not consist of words but design and symbols.
 Benefits of branding

Figure 7.4
 Types of brands

• Manufacturer brands.

• Retailer and wholesaler brands.

 The rules for good brand naming

• Distinctive.
• Supportive.
• Acceptable.
• Available.
 Packaging

Serves a functional purpose and a means of promotional

communication about the product or brand.

A container or wrapping in which a product is offered for

sale.

Effective and thoughtful packaging can increase sales.

 Product quality dimensions

Figure 7.6