What is a product?

Components of a product

A diagram of the things needed to build a product. A triangle, each point representing customers, technology and business. Each side depicting an intersection of 2 points; design, functionality, and monetisation. Finally the area of the triangle depecting 4 risks, Value, feasibility, viability and usability.
The product triangle — depicting things needed to build a product, and the risks involved.

Levels of product

  1. Core Product- This is the value part of the equation. What do customers get from your product? For Netflix this could be; to be entertained or to relax & switch off
  2. Actual product- This is the thing that is actually made (the creation part). Again taking Netflix; aggregated, convenient watching experience for a catalogue of TV
  3. Augmented product- This is usually the differentiating services around the the acutal product, brand, after sales care, positioning etc. Again take Netflix they have different subscriptions neither the core, nor actual product change; Basic (1 screen 720p), Standard (2 screens 1080p) and Premium (4 screens, 4K HDR)

What is not a product? — Software edition

Features

  • This doesn’t create significant customer value. People don’t buy amazon prime because of easy search functionality. They get that for free on google! 📦
  • Yes this is a necessary subset of the product, but it is not sufficient.

Components

  • Again, not sufficient value. But in this case, more about availability. You don’t make the API endpoints available to booking.com customers, and your customers don’t care about payment components. They care about holidays! 🏝
  • But, again it isn’t that simple. This might be an example of a product if the component was built by Braintree or stripe. Because customers will then pay for this service.

Channels

  • When the channels serve significantly different users and / or their problems. E.G facebook web vs FacebookLite App is another (serves users in developing countries with poor connectivity)
  • When the business viability (monetisation strategy) is significantly different. E.G web = advertising and the app= subscription

A new product mentor, figuring the best way to learn new stuff, and teach it in less time than I took to learn it.

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

READ/DOWNLOAD$& The Product Manager’s Survival Gui

3 takeaways on how to become a product-driven company

What is an A/B test? And how to Perform it?

Solving Customer Problems in an Agile Enterprise

Your first steps as a product manager

Reflections on Product Management in 2021

What is a Product Backlog?

Strategic Agility Is The Future. Here’s What You Should Do

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Sam Buddington

Sam Buddington

A new product mentor, figuring the best way to learn new stuff, and teach it in less time than I took to learn it.

More from Medium

Product manager

Top Blockchain Trends That Will Impact Your Business in 2021

How science is working to turn sugarcane into fuel for jet travel

Are Things Better With Amazon, UPS, and FedEx Drivers?