Core Product
This article covers meaning, importance & example of Core Product from marketing perspective.
What is Core Product?
A core product is a company's product which is manufactured from the company’s core competencies. These core products are then integrated into other products by the same company or a company which produces the main end product from this core product and the end products are marketed to the end consumers.
Every product which is manufactured can be classified as the following three levels.
- Core product offers the actual benefit which the customer needs.
- Actual product includes elements like color, branding, packaging, quality, tangible features.
- Augmented product offers benefits like warranty, customer care, finance, delivery, installation etc.
Importance of Core Product
In other words a core product is the main product which is made by the company for the customer. A company’s performance will depend on the main product. They make most of the profit from the sales and success of this product around which they build the other end products. The profitability of the main product becomes an important factor since it determines the profitability of the business.
Generally core product gives the main benefit of the product. But many more things are added to it to add value to the product. This leads to the conversion of main product to actual product and then augmented product. So, augmented product gives final complete product to the customer. The main product is not tangible physical product because the main product is the benefit of the product that gives core value for the customer.
Examples of Core product
|
Company |
Core Product |
|
Microsoft |
Windows OS |
|
|
Google search |
|
Pepsi Co |
Pepsi Cool drink |
The above example shows the main product offered by companies.
Hence, this concludes the definition of Core Product along with its overview.
Browse the definition and meaning of more similar terms. The Management Dictionary covers over 1800 business concepts from 5 categories.
Continue Reading:
