Your product offer is the key to determining the success of the store’s offer to the market. On the following pages we illustrate all the considerations that go into formulating a product offer for a market.
Notice how the offer (your response) assumes that:
- There is a market
- That is large enough & close enough & interested enough
- With discretionary funds available to purchase.
These assumptions are significant, and retailers must go through a proper profiling process (backed by some research) before committing to an offer.
But the most important consideration when selling a product or a service, is that the customer does not simply buy a ‘product’ = “teddy bear” when they buy a toy. They are buying a gift, they are buying happiness, they are buying forgiveness. When customers go to a restaurant, they don’t only buy the steak, the are buying the ‘sizzle’ – everything else that goes with the steak: romance, entertainment and not having to do the dishes!
So, to summarise:
- Core product: A night out
- Actual product: Steak and Chips
- Augmented product: Playroom for the kids
It isn't actually easy to articulate the core benefit. Or rather it is easy to getting rather 'wanky'. (Or should I say esoteric?) The acid test is whether your definition of the core product/benefit is actually helpful. For instance if you say ' we sell self-expression' then you could be a car manufacturer or a card manufacturer.