Strategic Marketing: Planning and Control, Third Edition

214 Strategic Marketing: Planning and Control

Kotler et al. (1999) defines a product as having three levels. Firstly, a core

productdefines the fundamental need being meet. Fundamental needs are

generic in nature (e.g. transportation, data storage or self-esteem).

Secondly, the actual productis the specific offering aimed at meeting a core

need. This includes attributes such as; styling, branding, performance fea-

tures and packaging. Finally, the augmented product, which enhances the

actual product by offering additional services and benefits, making the

product a more attractive proposition to the consumer. Examples include

factors such as after-sales support, maintenance and affordable finance.

It is important to consider product development at each of the above

levels. Organisations must fully understand their core product(s) – what

need does it meet? Then develop actual and augmented product offerings

that are attractive to specific customers groups. As an illustration, con-

sider Orange PLC:

Core Actual Augmented

●Communications ● Mobile phone network ●Voice mail

● Handset ●Insurance against lost

● Brand image

One ‘school-of-thought’ suggest that in certain markets, advances in qual-

ity management, manufacturing systems and information technology,

will tend to generate competitive products indistinguishable from each

other. Therefore, the only way to differentiate products is at an augmented

level – who offers the best service and support? Indeed, the augmentation

may become such a vital part of the product offering, that it is absorbed

into the actual product. It becomes an integral, essential part of the prod-

uct. For example when buying a new car, the warranty package is an inte-

gral part of the product offering.

Illustrative Example 10.1

Clarks footwear

Clarks dates back to 1825, when Cyrus Clark started tanning sheepskin rugs. He was joined by
his brother in 1830, who introduced sheepskin slippers. Production was boasted in 1856 with
the advent of the Singer sewing machine. An early marketing success was William Clark’s
introduction of the ‘Hygienic line’, a range which followed the natural shape and line of the
foot and established Clarks reputation for producing foot-friendly shoes. Clarks expanded rap-
idly during the early twentieth century. They introduced new technologies and materials, took
full advantage of the economies of mass production, and responded to changing fashions and
the emergence of the female ankle by putting much more emphasis on the development of
women’s shoes.
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