Levels of Product

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1. Explain various levels of Product with examples? (10 Marks) For many a product is simply the tangible, phsysical entity that they may be buying or selling. You buy a new car and that's the product - simple! Or maybe not. When you buy a car, is the product more complex than you first thought? In order to actively explore the nature of a product further, lets consider it as three different products - the COREproduct, the ACTUAL product, and finally the AUGMENTED product. These are known as the 'Three Levels of a Product.' So what is the difference between the three products, or more precisely 'levels?' The CORE product is NOT the tangible, physical product. You can't touch it. That's because the core product is the BENEFIT of the…show more content…
For him, a product is more than physical. A product is anything that can be offered to a market for attention, acquisition, or use, or something that can satisfy a need or want. Therefore, a product can be a physical good, a service, a retail store, a person, an organisation, a place or even an idea. Products are the means to an end wherein the end is the satisfaction of customer needs or wants. Kotler distinguished three components: • need: a lack of a basic requirement; • want: a specific requirement for products or services to match a need; • demand: a set of wants plus the desire and ability to pay for the exchange. Customers will choose a product based on their perceived value of it. Satisfaction is the degree to which the actual use of a product matches the perceived value at the time of the purchase. A customer is satisfied only if the actual value is the same or exceeds the perceived value. Kotler defined five levels to a product: 1. Core Benefit The fundamental need or want that consumers satisfy by consuming the product or service. 2. Generic Product A version of the product containing only those attributes or characteristics absolutely necessary for it to function. 3. Expected Product the set of attributes or characteristics that buyers normally expect and agree to when they purchase a product. 4. Augmented Product Inclusion of
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