what is core competence

Topics: Marketing, Sales, Customer Pages: 1 (368 words) Published: November 1, 2014

What is core product? And what’s the relationship with core competence?A core product is not the actual product but can be defined as the benefit of the product that makes it useful to the purchaser. This benefit might be an intangible idea or concept connected with convenience, status or the ability to achieve a certain task quickly. This benefit gives the product value and meets the needs of the intended customer. The core product should be distinguished from the actual product and from the augmented product, which includes added value such as after-sales service and warranty. Taking as an example a camera, the core product would be the ability to take a high quality picture conveniently, quickly and in a variety of circumstances. This solves the main problem for the buyer. The actual product bought by the customer also includes attributes such as brand, style and color. The augmented product would include customer service and warranty in addition to the other features. A company must maintain its core competencies and consider the main benefits for customers when developing its product offering. End products might be developed on the basis of the core competencies, and the features of the actual products, such as style, shape or color, might be changed according to taste and fashion. When a company varies its product offering, it should be careful not to drift away from the core product and the benefits offered to customers. Product diversification must be carefully planned with the core benefits to customers kept in mind to avoid diluting the product offering. The concept of the core product is important in the marketing of the goods made by a company. The benefit received by the customer must be emphasized in any marketing campaign that is aimed at selling the flagship products. The core benefit to the customer, such as convenience, cost-effectiveness or the ability to get a job done quickly and efficiently, must be featured prominently in any advertising...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Core Competence Essay
  • Core Competence for Sustainablecompetitive Advantage: a Structured Methodology for Identifying Core Competence Research Paper
  • Essay on Strategic Management and Core Competence
  • Human Resources as a Core Competence Essay
  • Essay on Core Competence
  • Core Competence of the Corporation Essay
  • Essay on Core Concepts in Cultural Competence
  • Strategic Management and Core Competences Essay

Become a StudyMode Member

Sign Up - It's Free