Understanding Product Attributes, Benefits, and Classification
What is a Product?
A product is anything that can be offered to a market to satisfy a want or need. It can be a physical item, a service, or an idea.
Basic Benefits of Products
These are the core benefits a product offers, defining its primary function or raison d’être.
Ancillary (Auxiliary) Benefits
These benefits add extra features or attributes, increasing the product’s perceived value to the consumer.
Aesthetic Benefits
Aesthetic benefits enhance a product’s attractiveness through shape, design, and color.
Symbolic Benefits
These benefits fulfill needs related to social affiliation, self-esteem, and self-fulfillment.
Who Perceives the Benefits? The Consumers
- Benefits are subjective.
- Benefits must be perceived to be valued.
- Benefits affect individuals differently and change over time.
Product-Market Concept:
- What product are we going to offer? FUNCTIONS
- Does the need exist? (Basic benefit)
- Can it be supplemented? (Ancillary benefit)
- Can we differentiate ourselves? (Aesthetic and symbolic benefit)
- To which market/consumers are we going to offer it? CUSTOMER SEGMENTS
- What are the consumer segments we are going to offer our product to?
- Are they willing to pay to buy / use?
- Can they differentiate between product / brands?
- How are we going to manufacture it / make it available to the market? TECHNOLOGY
How the company will face the reality Product – Market (Needs + Segment)
Tangibility of Products:
GOODS:
- Tangible: Touch, feel, aesthetic benefit
- Transfer of ownership (seller – buyer)
- Complete logistics process
- Manufacturing, transport, storage, delivery
SERVICES:
- Intangibility: Not perceivable to the senses
- Inseparable: Production and consumption simultaneously
- Heterogeneity: No two are alike
- Expiration + Non-Transfer of ownership (seller-buyer): If not consumed might be lost (airplane ticket)
Product Classification
According to Ownership
Free products: Abundant quantities which exceed actual needs.
Economic products: Limited quantities, with a market regulating supply and demand.
According to Use
Consumption products: Satisfy a final need; consumption is immediate.
Production / capital products: Used to obtain or modify other goods.
According to the Purchase Process
Convenience: Purchased regularly.
Shopping: Sporadic, requires planning.
Specialty: Luxury and exclusive component.
Unsought: Not a priority, lack of desire, becomes an urgent impulse.
Product Differentiation: The Attributes
ATTRIBUTES: Characteristics that define a product.
In which aspects we can differentiate ourselves from our competitors.
Actual Product Attributes:
BRAND ATTRIBUTE: Name / Logo
DESIGN ATTRIBUTE: Color, Size, Shape, Quantity
QUALITY ATTRIBUTE: Materials, Workmanship
PACKAGING ATTRIBUTE: Individual Packaging Product / POS / Distribution
PRICING ATTRIBUTE: RRP / Wholesale
Augmented Product Attributes:
AFTER-SALES ATTRIBUTE: Customer Service
TECHNOLOGY ATTRIBUTE: Added values of differentiation
WARRANTY ATTRIBUTE: Replacements, time, terms and conditions
ADDITIONAL SERVICES ATTRIBUTES
BASIC PROD = BASIC BENEFIT
ACTUAL PROD = AESTHETIC + SYMBOLIC BENEFIT
AUGMENTED PROD = ANCILLERY BENEFIT
Product Attributes Map
Features or characteristics that are most appreciated or most important to a consumer.
How our product is doing vs. how our competitor’s products are doing.
Filling in variables (Product Attributes).
Value our brand + competition.
