Product is the combination of Goods and Services offered to the target market by a company. There are two concepts of levels of Product and services. This article explains these levels with examples.
Definition of Product
The product can be a Good or Service offered to the market for attention, acquisition, use or consumption or to satisfy consumer/market needs.
Read more about product classification.
Two concepts of product level
I. Three Levels of Product
II. Five Levels of Product
I. Three levels of Product
3 levels of Products can be given as below:
1. Core Product
- Core Benefit/ingredients
- What are the buyers really buying?
- Also called a generic part.
Example:
- For a car, the basic requirement is steel, electrical part, fibre, glass, rubber etc.
- For a refrigerator, it is the steel, compressor, freon gas, etc.
- For a restaurant, it is space, chairs, table, workers, kitchen etc.
2. Actual Product or Formal Product
- Brand Name
- Quality Level
- Features
- Design
- Packaging
Example: Tata Car or HUL Detergent – Name? Design? Features?
3. Augmented Products
Additional Consumer Service and Benefits offered by Manufacturer or Marketer.
- After Sales Service
- Warranty
- Guaranty
- Installation
- Delivery and Credit
Example: for refrigerator, it is a water tap on the door, separate compartments, innovative design, Automatic temperature control etc.
Here marketer is searching for differentiation, additional value and innovation.
II. Five levels of Product
Below are 5 levels explained.
- Core Product
- Basic Product
- Expected Product
- Augmented Product
- Potential Product
The Product Levels – Explained
1. Core Product
Core Benefits from product and their attributes
2. Basic Product
Essential or necessary attributes
3. Expected Product
Characteristics Expected by customers
4. 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
5. Potential Product
Potential product is also known as Future Products.
This is all about three and five levels of product in marketing with suitable examples.