Whole Product +1
Adding value to commoditized products
The Whole Product +1 framework involves adding a differentiating element to a commoditized product to create perceived added value. This approach focuses on leveraging the existing commodity infrastructure by adding one differentiating element on top of it. The goal is to win the sponsorship of a specific category of end users, justifying a higher price based not on a higher cost but rather on a higher value received.
- The value of a product is not just determined by its objective utility, but also by its subjective experience.
- Differentiation can be achieved through secondary characteristics rather than primary performance vectors.
- The goal of marketing is to facilitate the transfer of money from the market into the company by ensuring that the company is delivering value out to the market.
- Identify the commoditized productDetermine which product or service has become commoditized and is in need of differentiation.Pro tipLook for products with high competition and low profit margins.WarningBe cautious of products with low demand or limited market potential.
- Determine the differentiating elementDecide what element to add to the commoditized product to create perceived added value.Pro tipConduct market research to understand customer needs and preferences.WarningAvoid adding features that are not valuable to the target customer.
- Develop the Whole Product +1 offerCreate a marketing offer that showcases the differentiating element and communicates the value proposition to the target customer.Pro tipUse clear and concise language to explain the benefits of the Whole Product +1 offer.WarningBe prepared to adapt the offer based on customer feedback and market response.
Hewlett-Packard targeted home office users with low-cost ink-jet printers, while also offering niche-specific extensions, such as compact portable printers and higher performance color printers.
The concept of Whole Product +1 emerged as a response to the challenges of marketing in a mature high-tech industry. As products become commoditized, companies need to find new ways to differentiate themselves and create value for their customers. The Whole Product +1 framework provides a structured approach to achieving this goal.