After reading you will understand the basics of this powerful product marketing tool. In this article you can also download a free Five Product Levels template. What is a product? A product meets the needs of a consumer and in addition to a tangible value this product also has an abstract value.
Feb Most marketing textbooks will show the products as having three distinct levels, namely the core benefit or need, the actual product itself, and the augmented product.
Please note that there is a separate article on this website that discusses the three product level model.
However, in some more advanced marketing textbooks, this model is expanded to include five different product levels, as follows: As another page on this website already discusses the core need, the actual product and the augmented productthis article will concentrate upon the two additional levels of the expected product and the potential Core actual and augmented tourism product.
You will note that the core need remains the same as the center piece of the product offering. This is surrounded by the actual or basic product level, which is consistent with the three product level model.
However, this is followed by the expected product — which is new to this model — and then finally the potential product is listed on the outside, which is also a new to the five level product model. Expected product When consumers buy a product, they essentially are buying a solution to a problem that they are facing, or are seeking specific benefits that is, the core need.
When this happens, it is important to consider the basic expectations of this style of product from the consumer. There is a danger that the product design may be to focus on differentiation and fail to include the straightforward expectations of consumers.
Therefore, the expected product becomes the checkpoint for a marketer to consider the completeness of the product offering.
If we were buying a can of soft drink — that product might be differentiated by using the actual product level by a combination of flavor, ingredients, serving size, branding, and so on. The expectations of the consumer would also include: If we visit a fast food restaurant, then the expectations would include: If we buy a computer, then the expected product would include: Obviously, part of these product attributes will normally fall into the actual product level, or the augmented product level.
But they are separated into their own level as part of this model, in order to ensure that they are not accidentally overlooked by the marketer, when trying to design a differentiated and competitive product in the marketplace.
Potential product This is the final level in the five product level model. And it is really considering how the product can be modified into the future, primarily to generate future sales from existing customers.
We can do this through product improvements and enhancements over time, which will provide some form of additional benefits to the consumer.
Typically they should be planned programs, as part of the overall product development process.
Examples of the potential product Again, probably the easiest way to understand the potential product is through some examples. The computer software industry is in good example start with.
Most consumers have Microsoft products on their computer, such as Word and Excel. Every couple of years, these products are upgraded to a new version with new capabilities. The prime target markets of these upgraded pieces of software are existing customers. While this provides a good income stream for Microsoft, it also provides a reassurance benefit for consumers.
When they buy a Microsoft product, they have the confidence that the product will be supported and they will be able to update the new software and technology, as required. Another example might be joining a fitness center with a five-year membership contract. The consumer might be enticed into a five-year contract, because the fitness center has plans to add new facilities and services over time.
Therefore, the consumer is attracted not only by the existing product, but also by the potential product.Oct 15, · For production companies it is important to deliver products in an upward trend from ‘Core Product’ to ‘Augmented Product’ and to have the potential to grow into the ‘Potential Product’.
Under the guise of stagnation means decline, innovative companies such as Ratings: An augmented product is a core product with added features and services that add value and distinguish it from competitors' offerings. Actual, core and augmented product examples and dimensions in marketing This article: marketing's actual core and augmented product provides examples.
Includes YouTube clip of Pepsi owned Pizza Hut's Core Product (benefits) example. This concept is also used for educational experiences that universities offer. May 31, · product levels core actual and augmented packaging product levels core facilitating supporting augmented product levels in tourism product levels in marketing pdf product levels iphone.
A product is much more than what you think. The three levels of product include the core value, actual- and augmented product.
More - at Marketing-Insider. all combined to carefully deliver the core benefit(s). Augmented Product-offer additional consumer benefits and services. Warranty (develop core product), then design the actual product and find ways to augment it in order to create the bundle of benefits that will best satisfy the customer.