The concept of product levels helps businesses understand the different aspects of a product that can influence consumer perception and purchasing decisions. The five different product levels, as defined by Philip Kotler, are:
1. Core Benefit
- Definition: The core benefit represents the fundamental need or desire that the consumer is fulfilling by purchasing the product.
- Example: For a hotel, the core benefit is providing a place to sleep and rest; for a car, it is transportation.
2. Basic Product
- Definition: The basic product is the version of the product that includes only its essential features and attributes necessary to deliver the core benefit.
- Example: In the case of a hotel, the basic product includes a room with a bed and basic amenities (e.g., bathroom, air conditioning). For a car, it includes the vehicle itself with basic functionality (e.g., wheels, engine, seats).
3. Expected Product
- Definition: The expected product encompasses the attributes and conditions that buyers normally expect when they purchase a product. It represents the minimum standards for customer satisfaction.
- Example: For a hotel, the expected product might include clean rooms, Wi-Fi access, and customer service. For a car, it may include safety features, a warranty, and a reliable performance.
4. Augmented Product
- Definition: The augmented product includes additional features, services, and benefits that differentiate the product from competitors and provide added value to the customer.
- Example: For a hotel, the augmented product might include complimentary breakfast, fitness centers, loyalty programs, or spa services. For a car, it could involve advanced technology features, premium sound systems, or extended warranty options.
5. Potential Product
- Definition: The potential product refers to all the possible augmentations and transformations a product might undergo in the future. It includes innovations and improvements that could be made to enhance the product and meet evolving consumer needs.
- Example: For a hotel, the potential product might include future expansions with eco-friendly rooms, smart room technology, or personalized services driven by AI. For a car, it could involve electric or autonomous vehicles, advanced safety systems, or integrated apps for enhanced connectivity.
Conclusion
Understanding these five product levels helps businesses develop a comprehensive product strategy that addresses consumer needs at various levels, from basic functionality to enhanced experiences. By effectively managing these levels, companies can improve customer satisfaction, differentiate their offerings, and build brand loyalty.