THE CONCEPT OF THE AUGMENTED PRODUCT 2012

The concept of the augmented product: an Application and evaluation of the concept on a brand: Canon 450 D

The concept of the augmented product arises from the need to differentiate a generic product from those of its competitors. Brands cannot exist in the long-run unless consumers can distinguish it from others. The more distinctive a brand position, with favourable attributes that the customer considers important, the less likelihood that a customer will accept a substitute.

To attract and retain consumers, the brand must convince them that it is relevant to the consumers’ individual needs (de Chernatony and McDonald, 2003). In order to do that, marketers must understand what a consumer segment considers as the core benefit of the product (generic product) and their expectations are from the brand (expected product).

Example: Digital camera market

Take the example of the digital camera market, it is a mature market characterised by extremely intense competition driven by technology and innovation. The core product of the digital camera market is a camera, which meets the consumers’ basic need of taking images. Hence, all camera manufacturers in the market can equally satisfy the consumers’ basic need. With no differentiation, they are easily substitutable. Hence, product augmentation is extremely important in the digital camera market.

The digital camera market is filled with highly distinguished brands such as Canon, Nikon and Sony.

The augmented product helps the consumers choose what brand they will buy and how much they will pay; it differentiates a brand from its competitors.

There are three layers:

1. The core product: (the generic product).2. The service elements (the expected product)3. The intangible product dimension (the augmented product)

BRAND: CANON 450D

[DRAW DIAGRAM]

The three layers that make up the augmented product:

LAYER 1: The Core Product (The Generic Product)The core product is usually undifferentiated. The core product is what actually meets the consumer’s basic needs. It involves the tangible and intangible benefits and features of the core product. The core product is easy to imitate.

Atiqah Ismail Direct and Strategic Marketing 2012

THE CONCEPT OF THE AUGMENTED PRODUCT 2012

Canon 450D Function – Camera - Ability to capture action, sports mode and low-light photography Features – DSLR - Built-in flash, semi-auto mode, sensor size and number of megapixels

(resolution), image stabiliser Design – Size and weight (‘feels solid in your hands’), black colour Price – £480 to £500 (body only, without kit lens)

Tangible core product: The features of the product – Design, shape and price.

Rival brand Nikon owns Nikon D80 which is considered to have the same function and features as Canon 450D hence they are substitutable, as mentioned before, the core product such as the features of the product, design, shape and price are imitable. Moreover the core function that consumer seek in digital cameras is the functional ability of the offering to capture memories and life events; such consumer need can be met by all camera manufacturers in terms of the 'core product' market; hence all manufacturers product in the digital camera market are substitutable.

Intangible core product: The functional benefits of the features – Core benefits to the consumers, cameras are meant to capture memories and life events. Ability to capture action shots, sports mode and low-light photography – produces crisp images

The core product specifies the customer’s need for the purchase.

LAYER 2: The Service Dimension

This layer makes the core product more appealing and less easy to imitate. It includes the additional services and the ‘expected’ added-value surrounding the core product, which makes the core product more appealing and less easy to imitate. The core product + the service dimension = the expected product.

This includes:

Before-sales service & advice – Information offered to reduce risk involved during purchase decision making, dissonance reduction

After-sales service – Maintenance and repair Extended warrantees Retaining value – Canon DSLR lenses bought are compatible with other Canon camera

bodies, hence if one choose to upgrade to a higher-end Canon model – investment in lenses is not a waste over the years.

Testing – Test if the device fits your needs, ability to hold and explore the device and functions to see if it is right for you and to self-reflect your current camera expertise

This layer, go beyond the generic product, but its elements are still expected by the consumers. In the digital SLR camera market in which Canon 450D is competing in, the expected product represents the minimal purchase condition.

Atiqah Ismail Direct and Strategic Marketing 2012

THE CONCEPT OF THE AUGMENTED PRODUCT 2012

The failure to fulfil a certain expectation may cause consumers to perceive the generic product to be unfavourable; for example Canon 450D was not packaged in a bubble wrap or it does not sell with an extended product warrantee.

LAYER 3: Intangible product dimensions

This layer involves the inimitable intangible benefits. They are the distinguishing factors of a product that makes a customer choose the product over other products. This layer adds on to the expected product. This does not necessarily be relevant to the core product itself.

This layer augments the product beyond what is expected or required by the product (Levitt, 1980). According to Taylor (2006) this is the ‘wow’ factor. This layer may actually involve tangible aspects, such as unexpected instalment of vertical grip on Canon 450D or an extension to the current warrantee. However due to rapid innovation of the market, according to Taylor (1980) eventually these developments or innovations will migrate inwards from the augmented level to the expected element. For example, after-sales service were once an augmented element, which other competitors may not provide, but overtime, it will be expected.

This layer also includes the emotional and personal values that the consumers attach to the brand. These elements are more sustainable and powerful in differentiating a brand from others.

This includes:

Canon brand – technical reassurance of the Canon brand, associated with consumers’ perceived quality and value of the Canon brand. Consumers' self-image association with the brand, 'prestige' and 'control'.

Reputation – High performance and high quality images, robust-build and durable – a wide range of highest quality lenses.

- Canon’s reputation as an environmentally responsible manufacturer. Consumers’ emotional attachment – For example, a consumer may have an emotional

attachment to the shutter sound, it has a certain shutter sound that sounds distinctively lush than Nikon DSLR camera. Consumer may have

All three layers make up an augmented product. An augmented product is everything that makes it easier for the customers to make purchase decision. The augmented product creates distinctive values that distinguish it from the competition. The augmented product is what marketers call the brand. The concept of augmented product is important in marketing strategy for product positioning. It aids the differentiation of a product from its competition.

By: Atiqah Ismail

Atiqah Ismail Direct and Strategic Marketing 2012