Signature product

Core products are a company's products or services which are most directly related to their core competencies. They refer to the use, benefit or problem-solving service that the consumer is purchasing the product. They are at the first level in the model - Three Levels of a Product. These products are then integrated into a variety of end products, either by the company holding the core product or by a second company to which the core product is sold to, and the actual products are sold to users. In simple words, core products are derived by customers when they use the product.

The concept of a Core Product originates from Philip Kotler, in his book - "Marketing Management: Analysis, Planning and Control" in 1967. This is the first level of the concept of Three Levels of a Product.

Kotler suggested that the nature of a product can be divided into three levels: the core product, actual product and augmented product. At this first level, the core product is defined as the benefit that the product brings to the customer. At the second level, the term, actual product refers to the tangible object, and relates to the physical quality and the design. At the third level, the augmented product consists of the measures taken to help the consumer put the actual product to sustained use. In marketing, the core product is viewed as one of the most important features. If a product does not function well or have clear benefits, regardless of how the actual product looks, customers will not use it. By using a mixture of the three levels of product in research and development, business firms can better understand their customers, better position themselves in the market, and create a better product .

The New Product Development (NPD) process, often referred to as The Stage-Gate innovation process, was developed by Dr. Robert G. Cooper as a result of comprehensive research on reasons why products succeed or fail. The New Product Development process focuses on the idea generation at the first stage of the product stages model, which describes the function of the core product. The core product is essential to product and service innovation. If the core product is innovative and meets public wants and demand, the product will be successful. However, if the core product is too abstract and does not meet public demands, the product will fail.

Core products are central to the company's performance and make the most money that sustains the business. One of the marketing strategies is to deal with product issues. In a competitive market, a successful product can't be determined by the actual look of the product. The use of the product is the most important that affect customers' interest to buy a product. Even though they are other augmented products that affect the successfulness of a product, but undoubtedly the core product is the most important factor.

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