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