Product is the combination of Goods and Services offered to the target market by company. There are two concepts of levels of Product and services.

    Product can be a Good or Service offered to market for attention, aquizition, use or consumption or to satisfy consumer/market needs.

    1. Three Levels of Product 

    2. Five Levels of Product

    Three levels of Product

    The three levels of Products can be given as below –

    Core Product

    (Core Benefit / ingredients)

    What is the buyers really buying?

    Also called a generic part.

    eg. for a car teh basic requirement is steel, electrical part, fiber, glass, rubber etc.

    for a refrigereator it is the steel, compressor, freon gas, etc.

    For restaurant it is space, chairs, table, workers, kitchen etc. 

    Actual Product


    Formal Product 

    Brand Name,

    Quality Level




    e.g. Tata Car or HUL Detergent –

    Name? Design? Features?

    Augmented Products 

    Additional Consumer Service and Benefits offered by Manufaturers or Marketer.

    After Sales Service

    Warranty Guaranty


    Delivery and Credit

    eg. for freeze it is water tap on the door, separate compartments, innovative design, Automatic temperature control etc.

    Here marketer is searching for differentiation, additional value and innovation.

    "The tangible component of the product along with the formal and core components is called augmented product." – R Saxena

    Five levels of Product

    Core Product

    Basic Product

    Expected Product

    Augmented Product

    Potential Product

    The Product Levels – Explained

    Core Product

    Core Benefits from product and their attributes

    Basic Product

    Essential or necessary attributes

    Expected Product

    Characteristics Expected by costomers

    Augmented Product

    After Sales Service

    Guaranty Warranty

    Return / Replacement Policy

    Payment Options

    Customer Complaints Management

    Consumer Education and Training

    Installation for bulky products

    Delivery Parts and Systems

    Potential Product / Future Products