Layers of the product
Core product: All the benefit the product will provide for consumers or business
Actual product: The physical good or the delivered service that supplies the desired
Augmented product: the actual product plus other supporting features such as a
warranty, credit, delivery, installation, and repair service after the sale.
How marketers classify products
How long do products last?
Durable goods: Consumer products that provide benefits over a long period of time,
such as cars, furniture, and appliances.
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?
Convenience product: A consumer good or service that is usually low priced, widely
available, and purchased frequently with a minimum of comparison and effort.
Staple: Basic or necessary items that are available almost everywhere.
Impulse products: A product people often buy on the spur of the moment.
Emergency products: Products we purchase when we’re in dire need.
Shopping products: Goods or services for which consumers spend considerable time
and effort gathering information and comparing alternatives before making a purchase.
Intelligent agents: Computer programs that find sites selling a particular product.
Specialty products: Goods or services that have unique characteristics and are
important to the buyer and for which she will devote significant effort to acquire.
Unsought products: Goods or services for which a consumer has little awareness or
interest until the product or a need for the product is brought to her attention.
How do businesses buy products?
Equipment: Expensive goods, which last for a long time, that an organization uses in its
Maintenance, repair, and operating (MRO) products: Goods that a business customer
consumes in a relatively short time.
Raw materials: Products of the fishing, lumber, agricultural, and mining industries that
organizational customers purchase to use in their finished products.
Processed materials: Products created when firms transform raw materials from their
Component parts: Manufactured goods or subassemblies of finished items that
organizations need to complete their own products.
“New and improved!” the process of innovation
Innovation: A product that consumers perceive to be new and different from existing
Continuous innovation: A modification of an existing product that sets one brand apart
from its competitors.
Knockoff: A new product that copies, with slight modification, the design of an original
Dynamically continuous innovations
Dynamically continuous innovation: A change in an existing product that requires a
moderate amount of learning or behavior change.
Discontinuous innovation: A totally new product that creates major changes in the way we live.
New product development
New product development (NPD): The phases by which firms develop new products
including idea generation, product concept development and screening, marketing