Published by MBA Skool Team, Last Updated: December 15, 2014
What is Actual Product?
Actual Product is the physical or tangible product which a consumer buys to get the CORE benefits that this product has in offering. For example, if the core benefit that a consumer seeks is READING then a BOOK is the Actual product.
The manufacturers keep in mind the CORE benefits before making the ACTUAL product. But since in almost every product category there is competition among the manufacturers, the companies usually differentiate their product from the rest. Some of the differentiating factors that the companies use are packaging, additional features, style, branding etc to attract the consumers to buy their product. Like in the case of the book the companies may differentiate themselves from the rest by providing a good quality paper, attractive cover, more colorful pictures in the book, a bookmark etc.
The below diagram illustrates the concept of the Total Product theory.
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.
Browse the definition and meaning of more similar terms. The Management Dictionary covers over 2000 business concepts from 5 categories.