A product is anything that can be offered to a market to satisfy a want or need.
- It includes physical goods, services, experiences, events, persons, places, properties, organizations, information, and ideas.
Note: It is not limited to physical items but includes tangible and intangible offerings such as:
- Physical goods (e.g., smartphones, clothes)
- Services (e.g., banking, education)
- Experiences (e.g., amusement parks, tourism)
- Events (e.g., concerts, sports matches)
- People (e.g., celebrities, politicians)
- Places (e.g., cities, tourist destinations)
- Properties (e.g., real estate, patents)
- Organizations (e.g., NGOs, companies)
- Information (e.g., news, books)
- Ideas (e.g., health campaigns, social causes)
Levels of Product:
To understand the value a product provides, marketers break it down into different levels:
1.) Core Product:
- The core product is the basic benefit or fundamental need that the customer is buying. It is not a physical product, but the value or solution that satisfies the customer’s need
- Example: A person buying a smartphone is essentially buying the ability to communicate, access information, and stay connected.
2.) Actual Product:
- The actual product is the physical or tangible product that includes features, design, packaging, quality level, and brand name. This is what the customer actually receives.
- Example: A Samsung Galaxy phone with a specific design, camera, processor, and brand reputation is the actual product.
3.) Augmented Product:
- The augmented product includes additional services or benefits that go beyond customer expectations. These can include warranty, customer service, free delivery, or loyalty rewards.
- Example: When you buy a smartphone and the company offers free cloud storage, a 2-year warranty, and 24/7 tech support, that’s part of the augmented product.
4.) Expected Product:
- The expected product is the set of attributes and conditions that buyers normally expect when they purchase a product. These are basic expectations of performance and quality.
- Example: When buying a smartphone, a customer expects a touchscreen, good battery life, camera, and warranty. These are not extra features but are expected as standard.
5.) Potential Product:
- The potential product consists of all the possible future enhancements or improvements that a product may undergo to remain competitive or delight customers.
- Example: A smartphone that may introduce foldable screens, AI-based features, or holographic displays in the future is tapping into its potential product level.
