Product structure

The product is a dynamic category with different levels of complexity. In dictionary terms, it means good that arises in the production process, i.e. a work, a product, the result of artistic work, social activity, etc. In economic terms, the product is an effect of the process of transforming production factors and is designed to satisfy specific consumer needs.

Moreover, the product consists of the full range of customer or consumer experience in its relations with the business organization. Holistically, the products can include: physical things, services, ideas, ideas, places, organizations, associations, shows, meetings, projects and other products of human potential that interact with the environment.

Product levels

The structure of the product underwent T. Levitt's research already in 1980, when analyzing purchasing motifs. At that time 4 product levels were distinguished: basic level, expected level, extended level, potential level.

However, the Ph class is the most commonly used in the literature. Kotler, dividing the product structure into the following levels :

1. core of the product;
2. real product;
3. extended product;
4. potential product.

The structure and levels of the product are inherently correlated with:

• features;
• characteristics of functional characteristics;
• attributes.

The core of the product

It is the essence of a product that is responsible for meeting the basic consumer need that determines its purchase. This level is correlated with the implementation of the basic benefit. All products in the same category have the same common core, despite its subjective perception.

We count it:

• physical product;
• functional features;
• technological solutions.

Real product

It consists of specific elements that, thanks to a variety of features, create a variable combination, tailored to the needs and requirements of the auditorium. They determine the power of perceiving the product among customers, suppliers and competitors.

We count it:

• price;
• quality;
• style;
• package;
• trademark;
• brand;
• model, features;
• material, raw material;
• service;
• contact with the consumer.

The product expanded

This category is related to the provision of additional services as part of the product offer, and the benefits from them are usually immaterial. They build a source of competitive advantage, especially if they are based on innovations and the latest technological developments.

We count it:

• repairs and maintenance;
• instruction and installation;
• credit;
• Complaints;
• warranties;
• guarantees;
• supply;
• spare parts;
• service empathy;
• availability of service points;
• readiness to provide services;
• additional services.

Potential product

This is a level that refers to innovations and future improvements. They may relate to appropriate product transformations in order to adapt it to market trends and changing consumer preferences. Product upgrades and improvements testify to the company's development, and on their basis it is possible to assess the stage in the product's life cycle .

We include various innovations.

Product attributes

By analyzing the structure of products, you can determine the benefits it provides to its buyers. These benefits are in practice communicated and implemented using the following attributes :

• product quality - is one of the most important tools for positioning on the market and translates directly into the functionality and effectiveness of the product. From a consumer perspective, it is connected with building value and post-purchase satisfaction.
• product features - they depend on its variants, functions or variety of produced versions and can be a source of competitive advantage on the market. The starting point is naturally the basic product, which is the basis for developing more complex models.
• design and product design - they build visual identification, which plays an important role in the brand management process. Moreover, the aesthetic dimension affects the emotional sphere, which creates the potential for advertising in marketing activities. It is necessary to properly brand products that will distinguish them from the competition.

Examples of Product structure

• Physical goods: These are tangible products that have a physical form, such as cars, furniture, electronics, and clothing.
• Services: These are intangible products, such as financial services, legal services, and education.
• Experiences: These are products that are focused on creating a unique experience, such as amusement parks, concerts, and vacations.
• Software: These are products that are digital in nature and can be downloaded, such as computer games and mobile applications.
• Ideas: These are creative concepts and ideas that are designed to solve a problem or create a new market, such as new business models and marketing campaigns.

Advantages of Product structure

A well-structured product can provide numerous advantages:

• It can provide a better understanding of the needs of the customer. By having a clear understanding of the customer’s needs, product developers can better tailor the product to meet those needs.
• It can reduce product development costs. By understanding the customer’s needs, the product developers can create a product that requires fewer materials, fewer steps in production and a shorter design cycle.
• It can improve product quality. By understanding the customer’s needs and having a clear product structure, developers can create a product that is well-crafted and of high quality.
• It can lead to faster product launches. By having a clear product structure and understanding customer needs, product developers can create a product that can be quickly brought to market.
• It can lead to faster customer feedback. By having a well-structured product, customers can easily provide feedback on the product which can then be used to improve the product.

Limitations of Product structure

The product structure has certain limitations that need to be taken into consideration when developing a product. These limitations include:

• Cost - The cost associated with creating the product must be taken into account when designing the product. This includes the cost of materials, labour, overhead and other costs associated with the product.
• Time - The amount of time it takes to create the product must be considered. The product must be created in the most efficient manner possible to ensure it is ready for market in a timely manner.
• Quality - The product must be designed and created to meet certain quality standards. It is important to ensure that the product is of a high quality and meets customer expectations.
• Resources - The resources available to develop the product must be taken into account. This includes the availability of materials, tools and personnel.
• Regulations - The product must comply with any applicable regulations or laws. This ensures the product meets the required standards and is safe for the public.
• Market - The product must be designed with the target market in mind. This includes understanding the needs and wants of the target audience, as well as the competition in the marketplace.

Other approaches related to Product structure

Product structure can be examined from a variety of different perspectives. These include:

• The functional approach, which looks at the elements of a product and how they interact with one another to create an end product.
• The design approach, which considers the aesthetics of a product, including its shape, colour, texture, and materials used.
• The engineering approach, which focuses on the technical aspects of a product, such as its components, assembly, and production processes.
• The economic approach, which looks at the cost and profitability of a product.
• The marketing approach, which looks at how a product is packaged and marketed, and how effective its campaigns are.

In summary, the product structure can be examined from a variety of perspectives depending on the purpose of the analysis. Each approach provides different insights into the product structure, which can be used to understand the product and how it can be improved.

Product structure — recommended articles

Designed quality — Product — Business model canvas — Value innovation — Wardley map — Knowledge capital — Service economy — Product development process — Innovation

References

• Suyama, T. L., Gerwick, W. H., & McPhail, K. L. (2011). Survey of marine natural product structure revisions: A synergy of spectroscopy and chemical synthesis. Bioorganic & medicinal chemistry, 19(22), 6675-6701.
• Chu, C. H., Luh, Y. P., Li, T. C., & Chen, H. (2009). Economical green product design based on simplified computer-aided product structure variation. Computers in Industry, 60(7), 485-500.
• Svensson, D., & Malmqvist, J. (2002). Strategies for product structure management at manufacturing firms. Journal of Computing and Information Science in Engineering, 2(1), 50-58.