An augmented product is a fundamental offering enhanced by its seller through added features or services, distinguishing it from competitors’ similar products. The augmentation encompasses intangible benefits or add-ons that transcend the core product itself.
Examples of augmentations might include free delivery, in-home installation, or complimentary products like cosmetics firms offering free makeovers and travel-size samples.
Key Insights
- Products manifest in three forms: core, actual, and augmented.
- Augmented products incorporate distinguishing features and services without altering the core product.
- Augmentation enriches the buying experience, often justifying a premium price.
- It’s this added value in augmented products that can propel customer preference and loyalty.
Understanding Augmented Products
To marketing professionals, every product has three layers: the core, the actual, and the augmented.
Core Product
The core product is the intrinsic benefit it provides the consumer. For instance, lipstick enhances attractiveness, sneakers promote health, and a smartphone aids in efficient communication.
Actual Product
The actual product is the tangible item, complete with branding, design, and packaging that confirms it meets core expectations. For example, a car must operate flawlessly to fulfill its promise of providing reliable transportation and added functionalities.
Augmented Product
The augmented product differentiates itself by offering supplementary features and services. These additions don’t alter the core product but significantly boost its perceived value, often justifying a higher price point. Consumers often gravitate towards products with meaningful, value-adding enhancements.
Examples of Augmented Products
Firms innovatively crafting augmented products offer exceptional buying experiences, building a steadfast customer following.
Apple TV
To promote its video and TV streaming service, launched in 2019, Apple offered a compelling augmentation for buyers of its devices: “Starting today, customers who purchase any iPhone, iPad, Apple TV, iPod touch or Mac can enjoy one year of Apple TV+ for free.”
Discounts and Freebies
Future purchase discount coupons or dissatisfaction refunds are forms of product augmentation. Similarly, a free recipe book with a kitchen appliance or enhanced services like in-store finance options for furniture, and free delivery enter the augmented realm.
Service Enhancements
Embedded augmentations in good customer service, store ambiance, fair return policies, and free classes or in-store demonstrations profoundly impact a retailer’s offerings. Retail locations, such as Apple stores, complement sales with product usage instructions and genuine customer engagement, elevating the augmented product experience.
In an age of myriad choices, effective augmentation can make products stand out in the highly competitive market landscape. Embracing these strategies leads to increased customer satisfaction, loyalty, and potential for premium pricing.
Related Terms: core product, actual product, customer experience, competitive advantage.
