A fundamental principle underlying the product P is that products deliver benefits which customers desire (and for which they are both willing and able to pay) at the right cost (via cost effective designs and methods which enable profitable sales).
So, from a strategic perspective, products can be considered benefit bundles. Customers buy products not for their features (e.g. a Pentium 4 chip) or their specific functionalities (e.g. pc processor speed), but rather for the perceived benefits that products deliver.
A product's features and functions - which are often the focus of technically developed design specifications - are simply the envelope for delivering the benefits that are desired by customers. The classic example is that people don't buy a drill simply to have a drill, but rather to have the capability to make holes.
The benefits that a product delivers can be physical, logical, or emotional.
For example, a pc provides the physical capability to move and store bits and bytes, which enables the logical compilation of documents and spreadsheets that provides the emotional satisfaction of completing important projects and making sound decisions.
Similarly, a soft drink may quench thirst (physical), taste good (logical), and make a person feel hip (emotional).