Product Concept

The product, from a marketing point of view, is a batch of benefits that a company offers to its customers in order to satisfy their needs and requirements( the product is not just the metallic or non-metallic material assembly). The product is approached form the customers’ satisfaction point of view, considering that they buy satisfaction, not just material objects.

The product is the offer of a company, addressed to the market in order to captivate their interest so that the customers purchase it, use it or consume it for a specific need or desire.
Therefore, the products can be material goods, services, persons, organizations, places, ideas.
In order for the product to be better understood, it needs to be analyzed on more levels, beginning with its essence to all the other features that can be added to the product so that it generates a maximum satisfaction.

3 level product analysis reveals the following aspects:

  • The product essence is the benefit that the product provides
  • The actual product consists in the tangible and intangible features of the product, that can also meet customers’ needs
  • The completed product has a series of extra intangible traits, that influence the purchasing decision and contribute to customer satisfaction (extra services, brand image, strong customer support)

Considering the various classification criteria, a product typology can be made:

  1. Classification regarding the destination
  • Individual consumption
    • General use products
      • Basic products (bread, basic foods, toothpaste, soap, clothes)
      • Extra products – unplanned purchases, caused by impulse and a momentary encounter with a limited offer (sweets near the cash register, ice cream and fresheners in crowded places)
    • Special products (luxury) – have unique features and the buyers are ready to make effort in order to buy them so that they can make a display of a certain social status
  • Industry consumption
    • Raw materials
    • Subassembly
    • Investment goods
    • Commercial services
  1. Classification regarding the durability
  • Short usage goods – are consumed at the first usage( foods, drinks, fuel)
  • Long usage goods – are used for longer periods of time( buildings, furniture, clothes)
  • Services – activities conducted to satisfy needs that do not require possession over the product (are intangible).