Published in Marketing and Strategy Terms by MBA Skool Team
What is Core Product?
A core product is a company's product which is manufactured from the company’s core competencies. These core products are then integrated into other products by the same company or a company which produces the main end product from this core product and the end products are marketed to the end consumers.
Importance of Core Product
In other words a core product is the main product which is made by the company for the customer. A company’s performance will depend on the main product. They make most of the profit from the sales and success of this product around which they build the other end products. The profitability of the main product becomes an important factor since it determines the profitability of the business.
Generally core product gives the main benefit of the product. But many more things are added to it to add value to the product. This leads to the conversion of main product to actual product and then augmented product. So, augmented product gives final complete product to the customer. The main product is not tangible physical product because the main product is the benefit of the product that gives core value for the customer.
The above example shows the main product offered by companies.
Hence, this concludes the definition of Core Product along with its overview.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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