Association of Chartered Certified Accountants (ACCA) Certification Practice Test

What does the term "core product" refer to?

1. A product’s additional benefits

2. A product’s essential features

3. The physical form of a product in the market

4. The promotional materials used for marketing

The correct answer is: A product’s essential features

The term "core product" specifically refers to a product's essential features — essentially, what the product fundamentally provides to the consumer. It is the primary benefit or utility that the product offers. This concept goes beyond the physical attributes of the product or additional services; it encapsulates the main reason consumers choose the product in the first place. For example, if we consider a smartphone, the core product is not just the hardware (like the screen or battery) but rather the key function it serves, which is facilitating communication and access to information. Understanding the core product helps marketers align their strategies with consumer needs, ensuring that the fundamental value proposition is clear and compelling. This understanding is crucial for businesses to effectively create and deliver their offerings in a way that resonates with the target audience.