Build a Better Mousetrap — Add Value
Layers of the Product Concept
a product is everything a customer receives - the basic benefits, the physical product and its
packaging, and the "extras" that come with the product
The Core Product
: all the benefits the product will
provide for consumers or
business customers
Marketing is about supplying
benefits, not attributes.
• benefits are the foundation of
any value proposition
• many products provide
multiple benefits
• some also provide
customized benefits -
manufactures add them
The Actual Product
: the physical good or the delivered service that supplies the desired benefit
• also includes unique features of the product (eg. appearance, styling, packaging, brand
name)
The Augmented Product
: the actual product plus other supporting features such as a warranty, credit, delivery,
installation and repair service after the sale
• adding these features is an effective way for a company to stand out from the crowd
How Marketers Classify Products
How Long Do Products Last?
durable goods: consumers products that provide benefits over a long period of time, such as cars,
furniture, and appliances
, • we are more likely to purchase durable goods under conditions of high involvement
• high-involvement products, marketers must understand what consumers' desires and
ensure they can find the information they need
o FAQ section on company website
o fb page, twitter feed, message board, community
o content will be much more favorable and firm can keep track of feedback
nondurable goods: consumer products that provide benefits for a short time because they are
consumed (such as food) or are no longer useful (such as newspapers)
How Do Consumers Buy Products?
Consumer
• Convenience Products
o : a consumer good or service that is usually low priced, widely available, and
purchased frequently with a minimum of comparison and effort
o nondurable
o expected to be handy, buy whatever brands are easy to obtain
o consumers already know what they need and want about a convenience product,
devote little effort to purchases and willingly accept alternative brands if their
preferred brand is not available in a convenient location
Layers of the Product Concept
a product is everything a customer receives - the basic benefits, the physical product and its
packaging, and the "extras" that come with the product
The Core Product
: all the benefits the product will
provide for consumers or
business customers
Marketing is about supplying
benefits, not attributes.
• benefits are the foundation of
any value proposition
• many products provide
multiple benefits
• some also provide
customized benefits -
manufactures add them
The Actual Product
: the physical good or the delivered service that supplies the desired benefit
• also includes unique features of the product (eg. appearance, styling, packaging, brand
name)
The Augmented Product
: the actual product plus other supporting features such as a warranty, credit, delivery,
installation and repair service after the sale
• adding these features is an effective way for a company to stand out from the crowd
How Marketers Classify Products
How Long Do Products Last?
durable goods: consumers products that provide benefits over a long period of time, such as cars,
furniture, and appliances
, • we are more likely to purchase durable goods under conditions of high involvement
• high-involvement products, marketers must understand what consumers' desires and
ensure they can find the information they need
o FAQ section on company website
o fb page, twitter feed, message board, community
o content will be much more favorable and firm can keep track of feedback
nondurable goods: consumer products that provide benefits for a short time because they are
consumed (such as food) or are no longer useful (such as newspapers)
How Do Consumers Buy Products?
Consumer
• Convenience Products
o : a consumer good or service that is usually low priced, widely available, and
purchased frequently with a minimum of comparison and effort
o nondurable
o expected to be handy, buy whatever brands are easy to obtain
o consumers already know what they need and want about a convenience product,
devote little effort to purchases and willingly accept alternative brands if their
preferred brand is not available in a convenient location
