tangible and intangible attributes of products

3.3 The Marketing Mix – Product

Objective

To master all product‑related concepts required by the Cambridge International Business (9609) syllabus, including goods vs. services, tangible & intangible attributes, product development, the product life‑cycle, USP & differentiation, portfolio analysis, and the interaction of product decisions with price, promotion, place, and international considerations.

1. What is a Product?

Cambridge definition: “Anything that can be offered to a market to satisfy a want or need.” A product therefore comprises the physical good (if any), the associated services, benefits and experiences that together create value for the customer.

2. Goods vs. Services

• Goods (tangible products) – physical items that can be seen, touched, stored and inventoried (e.g., a smartphone, a pair of shoes).
• Services (intangible products) – activities or benefits that are produced and consumed simultaneously and cannot be stored (e.g., a haircut, online streaming).

2.1 Four Characteristics of Services and Their Marketing Implications

3. Tangible vs. Intangible Product Attributes

3.1 Tangible (Physical / Functional) Attributes

• Design & style (e.g., sleek aluminium body)
• Material quality (stainless‑steel vs. plastic)
• Size, weight and dimensions
• Colour & finish
• Packaging – protective, informative, aesthetic
• Durability & reliability (MTBF – mean time between failures)
• Environmental impact – recyclability, carbon footprint

3.2 Intangible (Psychological / Experiential) Attributes

• Brand reputation & brand equity (e.g., Apple’s premium image)
• Customer service & after‑sales support
• Warranty & guarantees (length, terms, ease of claim)
• Image & status (luxury, eco‑friendly)
• Convenience & accessibility (availability, ease of use)
• Emotional benefits (confidence, pride, belonging)
• Perceived quality – overall judgement shaped by both tangible and intangible cues

3.3 Quick‑Reference Comparison (Exam‑style)

4. Product Development & Product Life‑Cycle (PLC)

The PLC shows the typical pattern of sales and profit over time. At each stage marketers adopt different objectives and actions.

5. Unique Selling Point (USP) & Differentiation

USP definition: The single, clear benefit that makes a product stand out from competitors.

5.1 3‑Step Template

1. Feature – What the product has (e.g., “5‑nm processor”).
2. Benefit – What the customer gains (e.g., “faster app loading”).
3. USP – Concise statement linking the two (e.g., “The fastest smartphone for multitasking”).

Fill‑in example: Feature = “Zero‑oil cooking technology”; Benefit = “Healthier meals with no added fats”; USP = “Cook without oil – healthier meals in half the time”.

6. Product‑Portfolio Analysis – Boston (Growth‑Share) Matrix

6.1 How to Place a Product – Checklist

• Market‑share % (relative to the largest competitor)
• Industry growth rate (% per annum)
• Profitability trends (high margin vs. low margin)
• Competitive intensity (number of rivals, price pressure)
• Strategic fit with corporate objectives

6.2 Decision Process (simple flow)

1. Gather quantitative data (market‑share, growth).
2. Plot the product on the matrix.
3. Apply the checklist – confirm quadrant.
4. Choose strategy: invest, harvest, divest, or reposition.
5. Allocate resources accordingly.

7. Integration with the Other 3 Ps (Price, Promotion, Place)

• Price
  • Cost‑based floor – derived from tangible inputs (materials, production).
  • Value‑based ceiling – derived from intangible benefits (brand equity, warranty, service).
• Promotion
  • Highlight tangible specs (size, battery life) and intangible benefits (status, reliability).
  • Use testimonials and guarantees to reduce perceived risk of intangibility.
• Place (Distribution)
  • Tangible: physical availability, packaging, shelf‑presentation.
  • Intangible: channel service level, delivery speed, after‑sales support.

Effective product strategy aligns all four Ps to deliver a coherent value proposition.

8. International Product Considerations (A‑Level)

• Standardisation vs. Adaptation – Decide whether the same tangible design and intangible brand message can be used worldwide or need localisation (e.g., colour preferences, cultural symbolism).
• Regulatory requirements – Safety standards, labelling laws, and environmental regulations affect tangible attributes (materials, packaging).
• Cultural influences on intangible attributes – Status symbols differ across markets; a “luxury” positioning in Europe may need a different emotional appeal in emerging economies.

9. Digital & Technological Impacts on Product

• Smart products (IoT) blend hardware (tangible) with software services (intangible) – e.g., a smartwatch that tracks health data.
• “Product as a Service” models (e.g., Adobe Creative Cloud) where the core offering is an intangible subscription.
• Online reviews and social media amplify intangible attributes such as perceived quality and brand reputation.

10. Ethical, Sustainability and CSR Aspects

• Eco‑design – Choice of recyclable materials, energy‑efficient production (tangible).
• Ethical sourcing – Fair‑trade ingredients, labour standards (intangible perception of corporate responsibility).
• CSR communication – Using packaging and branding to convey sustainability commitments, influencing consumer trust.
• These factors increasingly affect purchasing decisions, especially among younger consumers.

11. Product Decisions Involving Tangible & Intangible Attributes

1. Product design – Material selection, ergonomics (tangible) combined with brand personality and emotional appeal (intangible).
2. Packaging – Durability, information, recyclability (tangible) plus storytelling, visual identity (intangible).
3. Branding – Logo, colour palette (tangible) alongside brand promise, values and equity (intangible).
4. Warranty & service – Length, coverage (tangible) and quality of after‑sales support, response time (intangible).
5. Product‑line decisions – Adding models with distinct physical features (tangible) while positioning each to meet lifestyle aspirations (intangible).
6. Portfolio management – Using the Boston Matrix to allocate resources between stars, cash cows, question marks and dogs.

12. Why Intangible Attributes Matter

Intangible attributes create a competitive advantage that is hard for rivals to copy. They drive customer loyalty, enable premium pricing, and shape post‑purchase satisfaction. In many markets—especially services and high‑tech products—the intangible component (brand, support, perceived quality) accounts for the majority of perceived value.

13. Suggested Diagram

Key Takeaways

• Products consist of both tangible (physical) and intangible (psychological) attributes; both are essential for value creation.
• Goods and services differ in intangibility, inseparability, variability and perishability – each characteristic influences pricing, promotion and distribution.
• The PLC provides stage‑specific objectives and actions; tangible and intangible attributes are adjusted accordingly.
• USP and differentiation combine a clear feature‑benefit statement with emotional or brand‑related benefits.
• The Boston Matrix helps manage a diversified product portfolio; use the checklist and decision flow to place products accurately.
• Product decisions must be integrated with price, promotion and place, and adapted for international markets.
• Digital technology, ethical considerations and sustainability are now core to product strategy.
• Balancing tangible and intangible attributes is the key to achieving competitive advantage and meeting diverse customer needs.