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Whole-Product Concept

Chapter · December 2010

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whole-product concept

Jeffrey B. Schmidt
status (e.g., Rolex) or the activities that one is
LEVELS OF THE OFFERING interested in or participates in (e.g., running,
aviation).
Product planners should see their organization’s
offerings in the market at three levels, as shown ACTUAL PRODUCT
in the Figure 1, as customers do: core customer
benefit, actual product, and augmented product The actual product (or service) is how the
(Kotler and Armstrong, 2010). core customer benefit is manifested or made
available for consumption. Various features,
CORE CUSTOMER BENEFIT design characteristics, and elements, the brand
name, level of quality, and packaging, along
At the most basic level, products and services with other attributes, comprise the actual
are purchased to provide some perceived product. In essence, the actual product is made
benefit(s) to the user. Marketers, designers, from a collection of attributes (i.e., features,
and product planners must determine ‘‘What functions, and benefits) (Crawford and Anthony
is the customer really buying?’’ For example, di Benedetto, 2008).
a smart phone is more than a device that
allows one to make phone calls, check email, AUGMENTED PRODUCT
access the Internet, and send text messages.
Instead, it provides the freedom and the ability The outer level in Figure 1, the augmented

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to connect to information and people from product, consists of additional products,
many locations. Similarly, a wristwatch might services, and benefits that enhance/facilitate
give the user the ability to be punctual for buying (such as credit and delivery terms),
meetings and appointments, while certain using, and disposing of the product (e.g.,
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watches might also communicate one’s social after-sales service, warranties, and technical
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Augmented product

Actual product
E

Delivery After-
Brand
& Features sales
G

name Core
credit service
customer
benefit
PA

Quality Design
level
Design
Training Warranty
ST

Product
support
R

Figure 1 The whole-product concept. Source: Kotler and Armstrong, (2010).

2 whole-product concept
assistance). Components of the augmen- Bibliography
ted product offer ways in which to differentiate
offerings when customers perceive little variance Kotler, P. and Armstrong, G. (2010) Principles of
in the actual product or service. Marketing, 13th edn, Prentice-Hall, Upper Saddle
River, p. 225.
Crawford, C.M. and Anthony Di Benedetto, C. (2008)
WHOLE-PRODUCT CONCEPT AND CUSTOMER New Products Management, 9th edn, McGraw-Hill
VALUE PROPOSITION Irwin, Boston, p. 132.
wiem05057 VALUE PROPOSITION can be defined as what
the customer gets, relative to competitors,
compared to what he/she pays. Consequently,
the whole-product concept and customer
value proposition are related concepts. The
whole-product concept equates to what the
customer gets; that is, it is the entire bundle of
attributes and benefits.

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PA
ST
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 wiem05053

Please note that the abstract and keywords will not be included in the printed book, but
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If the abstract and keywords are not present below, please take this opportunity to add
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Abstract: Products and services may be thought of as having different levels of importance to those
who consume them. The whole-product concept considers (i) core customer benefits, (ii) the actual
product/service, and (iii) the augmented (ancillary) product/service as comprising market offerings.
The ability to differentiate products and services is possible by changing the actual product/service
and the augmented product/service even when competitive products provide the same or similar

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benefits to customers. The whole-product concept and its three levels are discussed and examples are
provided. Finally, the whole-product concept is related to customer value proposition.

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Keywords: whole-product concept; core customer benefit; actual product/service; augmented
product/service; customer value
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