What Is a Core Product?

Any product is composed of three layers. The innermost layer is the core product, the second layer is the peripheral product, and the third layer is the epitaxial product. The core product is the basic utility or benefit of the product provided by the customer. The core product is the benefit that the customer really wants to buy, that is, the value of the product. For example, for a washing machine, consumers want to buy convenient, fast, and clean; for a movie theater, consumers want to buy entertainment.

Core Products

Any product is composed of three layers. The innermost layer is the core product, the second layer is the peripheral product, and the third layer is the epitaxial product. The core product is the basic utility or benefit of the product provided by the customer. The core product is the benefit that the customer really wants to buy, that is, the value of the product. For example, for a washing machine, consumers want to buy convenient, fast, and clean; for a movie theater, consumers want to buy entertainment.

Chinese name

Core Products

Foreign name

core product

Relative concept

Epitaxial product

Location

Basic foothold

Basically, each product is essentially a service provided to solve a problem. For example, health care products are products for the middle and high-end consumer groups, and the prices are quite high. As a high-priced product, first of all, in the concept of core products, she must have super mainstream quality, and she must be reliable in quality assessment. And most consumers do nt think it s a problem,

Products are generally divided into core, tangible and add-on products. The core product is the final demand of the customer. Sometimes when a customer buys something, what he says is often the name of a product, but his needs may not be so. Customer to

After understanding the core values, the problem of positioning comes next.

The basic elements of the core product are divided into 5 aspects: the basic structure of the product family technology platform;

The basic structure and function of the product family;

The basic components and materials of the product family;

The basic production mode of the product family;

Basic marketing and service model of product family. A unified model (Figure 1) can be used to describe its conceptual form.

(1) The core product is the bridge between the product platform and the platform product

The enterprise product innovation platform is an organic system composed of innovative resources (R & D personnel, facilities, information and data, product and process standards), interfaces and contacts owned, controlled or shared by the enterprise. The product platform is a technology platform, basic resources and basic organizational structure integrated, the development and production of a certain type or series of products of the minimum technical specifications, resource requirements and organizational elements of the framework.

The core products reflect the basic elements, structure, level and value of the product platform. The core product is the initial and primary application of the product platform.

The platform product is derived from the core product, and it is the display of the value, potential and boundary of the product platform and the technology platform supporting it in time and space. The core product is the basic model of platform product development and production, and the platform product is the result of the differentiation of core products.

(2) The core product is a solid carrier of core competitiveness

The product's competitive advantage is a comprehensive display of the company's core competitiveness. Through "core technology technology platform product platform core product platform product", enterprises pass and establish the advantages of technological leadership and commercialization in the production process and market process. Based on its product platform, enterprises develop and maintain core products and platform products in succession or in parallel to show and maintain their competitive advantages based on core technologies in time and space.

After the initial commercialization of the new core technology, core products have been developed, making the enterprise a first mover in the market, and gaining a monopoly position and excess profits through technological leadership and value innovation. The core product integrates the advantages of both product technology and process technology, which is the concentrated reflection of core competitiveness. From the perspective of sustainable competitive advantage, core technology is the core and foundation of all competitive strategies for high-tech companies and their products, and the core products supported by it are the solid carriers for the display and preservation of the company's core competitiveness.

(3) The core product is a concrete manifestation of the value of the commercial platform

The core product of an enterprise is one of the most important results of the preliminary commercialization of its core technology. As the basic productization form of the product platform, it includes new product concepts that apply new technologies, the technical platform elements that support the product platform, and the core customer value to win the basic market. Or need to be developed).

If the business platform established during the commercialization of high-tech achievements is the carrier of the commercial value of high-tech enterprises and their venture capital, then the core product is a concrete manifestation of the value of the business platform of high-tech enterprises.