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Unit 6: Products, Services and Brands

perceived by the customer as having value then that perception will result in a purchase. If the Notes
customer uses your product consistently and is satisfied with the results, then it will result in
creation of customer value.
In its most basic sense, customer value can be defined as the difference between the benefit that
you receive from a product and the cost associated with that product. Modern consumers are
much more educated and informed. They will purchase products that they feel are worth the cost
needed to obtain them. Consumers are aware about the products, services and brands. They tend
to know exactly what they want to purchase and will not waste time with unsuitable products.
In this unit, you will be introduced to the concepts of product, services and brands that help in
creating customer value.

6.1 Product Concepts

Taking a narrow perspective, a product can be defined as a set of attributes assembled in a
distinct and identifiable form. One can distinguish a product by a commonly understood generic
name such as salt, steel, computer, entertainment, or crèche. Other attributes such as brand name
and any added services are not a part of this description; for instance, both Dell and Zenith sell
the same product – a PC.
The need of marketing is to have a more comprehensive definition of product to understand
clearly that consumers don’t really buy attributes. What consumers really buy are specific
benefits that they perceive as solutions to problems and satisfactions for their needs. Thus,
consumers want the instant sticking benefit, and not just a thick liquid-filled tube named Fevi
Kwik. It is important to appreciate that any product feature can be meaningful only to the extent
it delivers an expected benefit and satisfaction. Therefore, a product that provides the desired
benefits can be some other alternative than just a tangible good.

Example: To relieve pain there can be several alternatives other than painkiller drugs.

Note This book adopts a sufficiently broad definition of product given by Philip Kotler.
According to this definition, “A product is anything, tangible or intangible, which can be offered
to a market for attention, acquisition, use, or consumption that might satisfy a need or want.” Thus,
a product can be a physical entity (e.g., computer, shirt, or soap), some service (e.g.,
healthcare, tuition, or bank), a retail store (e.g., music store, locality grocer, or supermarket),
a person (e.g., a singer, physician, or politician), an organisation (e.g., business organisation,
trade organisation, or not-for-profit organisation), a place (e.g., village, city, or country),
or idea (e.g., social issues, concepts, or population control). We use the word ‘product’
innumerably in everyday life.

A product can be described at five levels:
1. The first level is the core benefit that customers seek and is just a basic version of a product
or service designed for the purpose of addressing and satisfying some fundamental need.
2. The second level is a generic product, one that provides necessary attributes or properties
to address the core need. At this level, depending on whether the product is durable, non-
durable, or service, the product will have certain attributes such as a brand name, quality,
styling, packaging, colour, and perhaps an instructions manual.

3. The third level is the expected product that boasts of a set of attributes or characteristics
that buyers normally expect in a product and which persuade consumers to buy it.

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