In short, core products are the heart of a business, while peripheral products are the supporting elements that enhance the overall customer experience and revenue potential.
Here is a breakdown of the key differences between core products and peripheral products.
Core Products
The fundamental benefit or problem-solving ability that a customer seeks when purchasing a product.
Essential to the Business: These are the primary offerings that define a company’s identity and generate the majority of its revenue.
Customer Focus: They directly address the core needs and wants of the target market.
Brand Building: They play a significant role in building brand reputation and loyalty.
Profit Drivers: They contribute substantially to the company’s bottom line.
Examples: For a smartphone company, the smartphone itself is the core product. For a restaurant, it is the food and beverage offerings.
Peripheral Products
Additional features, services, or elements that enhance the core product, making it more attractive or convenient for the customer.
Complementary Offerings: These are additional products or services that enhance the core product experience or generate additional revenue.
Supporting Role: They support the core product but are not essential to its function.
Brand Extension: They can help expand the brand’s reach and appeal to a wider audience.
Profit Boosters: They can contribute to increased revenue, but their impact on the bottom line may be less significant than core products.
Examples: For a smartphone company, accessories like phone cases and chargers are peripheral products. For a restaurant, it could be merchandise like branded T-Shirts or desserts. Additional peripheral products also include welcome drinks at hotels, magazines offered to clients in a hair and SPA salons, snacks and drinks offered by airlines, etc.
When it comes to Physical Evidence in Marketing Mix of Services, many companies use a range of peripheral products during delivering their services. The purpose of using those peripheral products is to enhance the overall service quality provided to customers.
