What is Basic Product? Definition of Basic Product, Basic Product Meaning and Concept
The basic product is the first level of a product and is the good or service that covers a need.
It refers to the intrinsic product that covers the need. For example, it can be pure water to satisfy thirst, a car to get around, or telecommunications services to communicate.
The basic product is what represents the generic of a satisfier. However, even at this minimum level of product, the company must know that each consumer requires a product that meets his need, but this need is different in each one.
For this, products are made according to the different market segments.
What is a market segment?
It is a group of consumers who have certain homogeneous characteristics in their needs, so companies can design basic products for each group.
- For example, a shampoo is used to wash hair, but each person who wants to sanitize their hair does so motivated by a different need.
- If a person has dandruff, they need a shampoo that has certain properties to eliminate the health problem they are facing. If another person is looking for an aesthetic benefit, the company may develop a different product for each type of straight or curly hair.
- And so we could divide more groups with particular and specific needs that the company must meet by creating products that are better suited and adapted to each requirement.
Importance of product differentiation
The basis of the success of a company or business is the product it sells, for that reason every company seeks that its products are better and different from the others offered in the market.
- If you offer a good intrinsic product, consumers are willing to prefer this offering and even pay a higher price for it; since he considers that he has superior elements that allow him to better cover his dissatisfaction.
- The differentiation of a product can be real or psychological, in the case of the basic product the differentiation has to be real, it means that objectively a person is able to find differences between one product and another.
- Instead, psychological differentiation can occur through the use of a brand that gives prestige to a satisfier; or using communication strategies to position a product in a privileged way within the market.
Basic Product Features
It is the set of internal characteristics of a product, which enable it to solve a need.
These characteristics can be:
When buying a laptop, an important element is the weight of the product, because this product is used to be moved from one place to another; for this reason a consumer is happier if the computer has less weight.
Size is another important determinant when analyzing the differences of a product; When a consumer of a wristwatch buys one, the size is something very important, because it will depend on the size of his wrist to choose a large or small watch.
When products such as shampoo, deodorants, disinfectants, among others, are purchased; the smell of the product will be decisive in making the purchase choice and which later becomes a differentiating element. The smell becomes somewhat characteristic for the user.
In other types of products such as chewing gum, chocolates, food and beverages in general; flavor is what will distinguish one intrinsic product from another, and what will determine its degree of preference in the market.
Color is currently a very significant element to compete in the market. In the cell phone market, if the product wants to position itself as something luxury or high-end, colors such as gold or silver are used. If we are targeting female adolescents, lilac or pink. In any case, the aim is to be perceived as something different. The color goes according to the lifestyle of the person who is going to use it.
Functionality is one of the most important characteristics of a product, since its performance will depend on it. Currently, it is one of the variables with which there is more competition in the market and with which it is sought to achieve a higher level of differentiation and preference. This factor is worked a lot in the technology, automotive and telecommunications industries, among others.
These characteristics have nothing to do with the packaging or packaging of the product, but with the internal characteristics of the product that will determine its level of usefulness for the user.
Finally, we realize that companies always seek to differentiate themselves from their competitors, to achieve buyer preference. Product differentiation at the basic or intrinsic level can be achieved by working on durability, reliability, functionality, performance, style, design, and overall presentation. So that the product not only works properly, but also is attractive to the user. Of course, each feature depends on the specific product that we are going to refer to.