Product is the carrier of value or utility, and the user and customers pay for the value of the product. It is easy to understand the characteristics of a tangible product which are mostly physical and solid. In the modern era, internet-based products boomed exponentially so does the users of these products.
These web-based products become more complex so a breed of people is required to build, maintain, design, and manage the products. Meanwhile, some sub-functions of the main product evolved into extremely important sub-products. These sub-products need dedicated product managers to manage, these sub-products are known as features. Similarly, the managers who manage these features and products are known as product managers.
Fundamentally, products are solving the problems of the users. The product managers are nothing but a battalion of a soldier who is a problem solvers of the user, through the product and features.
Disecting a Product 🧑🔧
According to marketing wizard Prof. Philip Kotler, a product comprises three levels: Core, Actual, and Augmented.
The diagram depicts the three product layers of a washing machine to resonate with the idea of a product. I will take the help of the diagram to explain the concept of a product by Prof. Philip Kotler.
Core Product ⚡️✨🌟⭐️💫
It solves the fundamental problem and the user derives a value out of it. Example: The washing machine provides us convenience by doing the fundamental work of washing the clothes. Simply put, a customer pays the price on the washing machine to wash clothes which reduces physical labor. So, eliminating physical labor by providing convenience becomes the core offering of the product.
Actual Product 🤖👾
Actual product refers to the constituent of the product made up of at is the physical form. Example: The washing machine is made up of a motor, water inlet pipe, water outlet pipe, electronics PCB, etc. Here customers and users can see and understand the physical form of the product they are using.
Augmented Product 🐶🐒
The Augmented Product is the non-physical attribute of the product. The Augmented Product carries additional values along with the core product and the actual product. Example: Warranty for 5 years on the washing machine. Sometimes, the Augmented Product is also perceived as a delight by the user.
Product From the Modern-Day View 😎🤓🥸
Different users may perceive value out of product in different ways. Be it a tangible or non-tangible product, the product values are moving in the direction of personalization. Great features and customer engagement are just other attributes of modern-day’s packaged products. These products are designed, built, and managed by keeping the needs and wants of the users at their core.