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Product Definition

Product is anything that can be offered by manufacturers to note, asked, sought, purchased, used, or consumed as fulfilling market needs or desires the relevant market. Products offered include physical goods (like motorcycles, computers, TVs, textbooks), services (restaurants, lodging, transportation), or a private person (Madonna, Tom Hanks, of Michael Jordan), place (Kuta Beach, lake Toba) , organization (Indonesian Institute of Accountants, Scout, UN), and the idea (Family Planning). Thus, the product can be tangible or intangible benefits that can satisfy customers. Understanding the above products can be clarified in Figure 6.1.

Concept, Level, and Product Hierarchy
Conceptually, the product is the subjective understanding of the producers on something that can be offered in an effort to achieve organizational goals through fulfilling the needs and desires of consumers, in accordance with the competence and capacity of the organization as well as the purchasing power of the market. In addition, the product can also be defined as consumer perceptions described by the manufacturer through their products.

In planning offers or products, marketers need to understand the five levels of the product are:
1 The main products / core, namely actual benefits will be required and consumed by customers of each product. In the hospitality business, the main benefit is purchased the guests ‘rest and sleep’. For cinema, the audience actually buy ‘entertainment’.

2 generic products, ie products that are able to fulfill the basic functions of the product of the most basic (minimum product design in order to function). For example, the hotel is a building that has a lot of room for rent.

3 Products of hope, which is a formal product offered by a variety of attributes and condition as normal (viable) expected and agreed to be purchased. For example, hotel guests expect a clean bed, soap and towels, hot water, telephone, wardrobe, and serenity.

4 products are complementary, ie, the various attributes of a product equipped or add a variety of benefits and services, so as to provide additional satisfaction and can be distinguished with competitors’ products. For example, a hotel can add a TV, shampoo, fresh flowers, check-in and check-out fast, a good room services, and others.

5 potential products, ie all sorts of additions and changes that may be developed for a product in the future. Adding facilities such as a hotel internet services, video recorder with video cassette, a plate of fresh fruit, and more.