Know-How Exchange : Student Questions

On a piece of paper, draw 4 concentric circles. Label the center circle "Generic Product," the next circle out, "Expected Product," third circle "Augmented Product," and the last one "Potential Product."

Generic Product
This is a product with basic functionality. As an example, a green jelly bean. Nothing special about it - many competitors make green jelly beans. They are all alike.

Expected Product
For this product, the manufacturer adds all of the supporting stuff the customer needs/expects to make this a real product. This includes things like good quality - who wants a green jelly bean that tastes like lime one day and dish soap the next? It also includes packaging, distribution, etc. So, you can buy the green jelly beans in the store of your choice with the right number in the bag, oh, and, you probably expect there to be red, black, orange, and purple jelly beans too!

Augmented Product
For this product, the manufacturer adds some "nice to have" features that set it apart from the competition. For our example, the manufacturer could supply a jelly bean dispenser in which you could carry your jelly beans throughout the day and pop one after a good meal. Quite often, this step involves "partners" - someone who provides a little more service or complementing products. For jelly beans, perhaps the manufacturer partners with a wine company who provides just the right wines to go with the various jelly bean colors, or with a cook book publisher who publishes recipes for jelly bean desserts.

Potential Product
The product becomes the potential product when it includes all functionality the market is looking for. This is where the manufacturer becomes not just a "supplier," but a partner with the customer. Our jelly bean manufacturer becomes your partner by allowing you to call him in the middle of the night when you run out of green jelly beans (you still have plenty of red, purple, and orange ones...but you like green) and he delivers them to where ever you are at that point. He comes on a Sunday to cook your jelly bean cake for a dinner party. You have a love of key lime (not just lime) and he will design a green key lime jelly bean for you. After you wake up, he makes your bed and places green jelly beans on your pillow. He has become an indispensable part of your life. His green jelly beans are now the complete "potential" product and you are realizing ultimate satisfaction.

The point of the Whole Product Model is that "value" to the customer increases as the manufacturer moves from the generic product to the potential product. Competitive advantage also increases because you build a closer and closer relationship to the customer. And, because of this, barriers to entry increase.

I hope this helps.

Wayde