Product refers to the tangible product your organization officers, the service it provides, or a combination of the two. For many companies the product could be a new car or living room set. For others it could be a service provided like a personal trainer or pest control company. The product is then broken up into three different levels: the core product, the actual product, and the augmented product.

Core Product:

The core product is not the actually product or service itself. It refers to the benefit the consumer will gain from purchasing the product or service. For example, the benefit of purchasing a car would be freedom or independence to travel or the ability to commute to work and back. The benefit of a purchasing the services of a personal trainer would be to get in shape, increase self esteem, rehabilitate an injury, or the comfort in knowing you will stay healthy. A good question to ask to help identify the core product is “What is the consumer really buying?”

Actual Product:

The actual product is the actual tangible product or service the consumer is purchasing, the living room set, car, etc.

Augmented Product:

The augmented product refers to any attribute that goes a long with the purchase of the particular product or service. The extended warrantee on the car or living room set, or the satisfaction guarantee behind the pest control company’s service being provided. Think of the augmented product as an after sales service.