Augmented Product

Definition

The augmented product refers to the additional features, services, and benefits that are offered alongside the core product to enhance the customer's overall experience and perceived value. It goes beyond the basic or expected product to include supplementary elements that differentiate the offering and provide added utility or satisfaction to the consumer.

5 Must Know Facts For Your Next Test

1. The augmented product is a key component of the marketing mix, as it helps create a unique and differentiated offering in the market.
2. Augmented features can include warranties, delivery, installation, customer service, and additional accessories or complementary products.
3. Enhancing the augmented product can be a powerful strategy to increase customer satisfaction, loyalty, and willingness to pay a premium price.
4. Effective management of the augmented product requires a deep understanding of customer needs, preferences, and the competitive landscape.
5. Regularly updating and improving the augmented product can help a company stay ahead of the competition and maintain a strong market position.

Review Questions

• Explain how the augmented product concept fits within the broader context of the marketing mix.
  • The augmented product is a key component of the marketing mix, which encompasses the 4Ps: product, price, place, and promotion. While the core product addresses the fundamental need, the augmented product focuses on enhancing the customer experience by offering additional features, services, and benefits. By strategically managing the augmented product, companies can differentiate their offerings, create value for customers, and ultimately influence purchasing decisions.
• Analyze how the augmented product can be used to build customer loyalty and increase perceived value.
  • The augmented product can be leveraged to build customer loyalty and increase perceived value in several ways. By offering supplementary features and services that go beyond the expected product, companies can create a more personalized and satisfying customer experience. This can lead to greater customer satisfaction, loyalty, and a willingness to pay a premium price. Additionally, regularly updating and improving the augmented product can help a company stay ahead of the competition and maintain a strong market position, further reinforcing the perceived value of the offering.
• Evaluate the role of the augmented product in a company's overall marketing strategy, and discuss how it can contribute to sustainable competitive advantage.
  • The augmented product plays a crucial role in a company's overall marketing strategy, as it can be a key driver of sustainable competitive advantage. By offering a unique and differentiated product experience through the augmented features, a company can create barriers to entry, making it more difficult for competitors to replicate the offering. This can lead to increased customer loyalty, higher perceived value, and the ability to command premium pricing. Moreover, the continuous development and enhancement of the augmented product can help a company stay ahead of the competition and maintain a strong market position over the long term, contributing to its overall strategic competitiveness.

Related terms

Core Product:

The core product is the fundamental good or service that the customer is primarily purchasing to fulfill a specific need or desire.

Expected Product: The expected product includes the basic features and characteristics that customers anticipate and expect from a particular product or service offering.

Potential Product: The potential product encompasses all the possible enhancements and future developments that a product could undergo to meet evolving customer needs and preferences.