Designing a Product’s Augmentation


product mix, product levels, product design, brand, product augmentation, new products

Review the activity below or download the PDF student worksheet

Student Worksheet: Designing a Product’s Augmentation

Student Discussion Activity

As you add more value to a product, you also increase your costs of producing the product. The question is whether your consumers actually see value in the extra ‘benefits’ that you are providing.

In this activity for a banking ‘club”, you need to determine what would be the appropriate level of augmentation for each of the club’s elements.


Your task is to design a ‘Financial Club’ for a bank.

Their target market is retired people (aged 60 years plus). Work through each row below and determine the extent to augment each club feature.

No Augmentation OR

Level One OR

Level Two OR

Level Three

Standard Interest Rates

Occasional special interest rates offers

Frequent special interest rates offers

Permanent special interest rates offers

No discounts

Discounts on selected financial products

Discounts on all financial products

Discounts with a range of other business (e.g. restaurants, hairdressers)

No newsletter

Emailed financial newsletter

Mailed financial newsletter

Mailed lifestyle (also covers non-financial issues) newsletter

No seminars

Financial seminars – at cost to attendees

Financial seminars – free to attendees

Lifestyle seminars – free to attendees

No website information

Information on the bank’s website

Special password to access a private part of the bank’s website

A separate, standalone, website

No loyalty program

Loyalty points on selected products with the bank

Loyalty points on all products with the bank

Loyalty points on all bank products, plus points from the bank’s discount partners

No special treatment

Priority access to the call center

Access to a team of general personal bankers

Access to a dedicated personal banker

No special events

Invitation to an end-of-year function

Multiple social events and hospitality- at cost-price to attendees

Multiple social events and hospitality – free to attendees

 Student Discussion Questions

  1. What is your final design for the bank’s financial club?
  2. Why do you think that this structure will best appeal to the target market?
  3. To what extent did you augment the product?
  4. How does your product compare to the design of your fellow students?
  5. Do you think that your financial club design will be profitable (taking into account the costs of running the club as well)?

Related Activities

How this Product Augmented?

Using the Product Levels

Product Levels/Dimensions

Does Product Augmentation Matter?

For more information on these concepts

Please review this article on the three product levels at the Marketing Study Guide.