Definition of Actual Product
An actual product is a physical or tangible product that is ready to use. It is the product consumers can hold in their hands when they purchase.
Through actual products, consumers get the core benefits of the product. For example, if you seek actual benefits from a product in writing, then the actual product will be a pen or a pencil.
A core product is a primary benefit the product provides, whereas, an actual product is the physical form of the core product. In addition, the actual products can also be in intangible forms like service, consulting, counseling, etc.
Actual products are made up of characteristics or attributes like name, design, packaging, brand name, quality, taste, weight, size, color, etc. Such attributes of products help consumers to decide which product is right for them or not.
As a marketer, you have to keep in mind the core benefits of the product while designing the actual products.
The actual product must have its core benefits, if it is not in it, the product will not have the unique feature that differentiates it in the market from other similar products.
Levels of Product
Let’s understand the five main levels of a product to better understand the actual product and its position in the levels. Philip Kotler has suggested the following five levels of products:
- Core Benefits: The core benefit is the primary benefit the product aims to offer to consumers. It is also called a core product. It is just an idea and does not have its physical look yet. But considering it the actual product is made. For example, if you want to serve knowledge to others, your core product is knowledge, and you may serve it through a book, here the book is the actual product.
- Actual Product: Following the above example, the book you made to share your knowledge is the actual product. Actual products are usually in physical forms that can be easily touched and consumed or used.
- Expected Product – This includes the attributes or characteristics consumers expect from a specific product. For example, consumers may expect your book to have an attractive cover.
- Augmented Product – It is the product the consumers get services in addition to a physical product. The book is your physical product, if you offer other benefits like an attractive cover, discounts, easy language, more colorful pictures, etc. are all part of the augmented product.
- Potential Product: A potential product is an idea of adding additional features to a physical product. It is just an idea and has not been added to the product. For example, you may think to add a new chapter to your book and republish it – this is your potential product.
Related: What is Augmented Product?
Examples of Actual Products
I don’t think it is necessary to put examples of actual products. However, let’s put some for the sake of knowledge.
- Novels
- Educational textbooks
- Pens
- Pencils
- Notebooks
- Smartphones
- Computers
- Laptops
- Smartwatches
- Tablets
- Headphones
- Cars
- Motorcycles
- Bicycles
- Buses
- Trucks
- Clothes
- Rings
- Shoes
- Watches
- Handbags
- Accessories
- Furniture (tables, chairs, beds)
- Appliances (refrigerators, microwaves, washing machines)
- Kitchenware (cutlery, utensils, dishes), and so on.
Importance of Actual Product
The following are the main importance of actual products to businesses.
Source of Income
Actual products are what companies sell to consumers as well as actual products are what consumers buy. Actual product is the main source of income for any marketing firm.
Marketing Mix
The product is the heart of the marketing mix. Without the product, the pricing, promotion, and distribution parts of the marketing mix can not be done. Without the product, the marketing mix is of no use.
Also Read: What is Product Concept?
Means of Satisfaction
Actual products are also the means of satisfaction for consumers’ needs and wants.
Although the core product is what satisfies consumers’ needs, the actual product is through which consumers enjoy the core benefits.
Helps Differentiate
Actual products include attributes like quality, design, packaging, etc. which make a product different from other products. Through such attributes, companies make their product different from other brands.
This further helps consumers to choose the relevant product attributes they wish to have in the products.
Builds Brand Identity
Actual products represent a company’s brand and quality in the market.
Through design, packaging, and performance, they create a lasting impression on consumers. A well-crafted actual product can help build a strong brand image and foster trust among customers.
Read More: Evolution of Marketing Philosophies
Drives Innovation
The need to stay competitive in the market often leads companies to innovate and improve their actual products.
This innovation not only satisfies evolving consumer needs but also helps businesses stay relevant and ahead of their competitors.
Actual Product vs. Augmented Product
The actual product refers to the tangible, physical version of a product that meets the core needs of consumers. It includes features like design, quality, brand, packaging, and size.
For example, a smartphone’s hardware, screen size, and operating system are part of the actual product.
On the other hand, the augmented product includes additional features or services that enhance the consumer experience beyond the core and actual product.
These may include warranties, free delivery, customer service, or after-sales support. Augmentation helps differentiate the product from competitors and adds value, creating a unique selling proposition.
While the actual product satisfies basic needs, the augmented product aims to exceed customer expectations and build loyalty.
Read More: Stages in PLC
Role of Actual Product in the Marketing Mix
The actual product plays a central role in the marketing mix by directly influencing pricing, promotion, and placement strategies.
Pricing
The features, quality, and design of the actual product determine its cost and pricing strategy.
High-quality products may justify a premium price, while budget-friendly options might attract lower pricing.
Promotion
The product’s unique features and benefits are highlighted in promotional campaigns.
Effective marketing of the actual product emphasizes its value to attract consumers and differentiate it from competitors.
Place
The actual product’s design and packaging influence distribution decisions.
Products with specific packaging or quality may be sold in particular outlets, while others may require special handling or placement in niche markets.
Read Next: 4Ps of Marketing Mix
Sajan Kushmi is a content writer with more than 4 years of experience. He holds BIM Degree. He write on the topics related to Management, Marketing, and Entrepreneurship.