Core actual and augmented product levels

Augmented Product

The diagram below shows the three levels that make up the total product concept Level One: This is not just about satisfying the customers and exceeding their expectations but also about surprising them. For this reason Philip Kotler states that there are five product levels that can be identified and developed.

The first one of the levels of product, the core customer value, answers the question: So product lines are extended, in this case the reason being is to ease operational efficiency. For a warm coat this is about fit, material, rain repellent ability, high-quality fasteners, etc.

If you buy a smartphone, the core customer value might be communication. Also, the positioning and promotion of the augmented product is crucial for its success. Likewise, if you buy an iPad, you buy more than a mobile computer or a personal organiser.

These are only two levels of product. If several rival computer manufacturers have computers with the same features and operating capacity, the one that best highlights these features will likely be the item chosen. For example, a warm coat will protect you from the cold and the rain.

What you buy is a complex bundle of benefits that aim to satisfy your needs. When describing the cereal you would identify the following product features: If you think of a car, you probably think of the car: Competition[ edit ] The competition between businesses focuses mainly on the distinctiveness of the Augmented Product and the Core Product, according to Kotler.

What does the customer really need and want, what problem does he have? The augmented product is an important way to tailor the core or actual product to the needs of an individual customer.

What is the problem that needs to be solved? Competition The competition between businesses focuses mainly on the distinctiveness of the Augmented Product according to Philip Kotler.

Broadening the Concept of Marketing. In the case of the computer, this might include case covers, ergonomic keyboards, or tablet devices that assist in augmenting the product.

Answer – Three Levels of a Product

Becoming healthier is the benefit to the consumer. For others, it might be status or glamour. A woman buying a lipstick seeks more than just a colourful cosmetic. How to cite this article: The features of augmented products can be converted in to benefits for individuals.

Core product

All these factors at the second one of the levels of product relate to the core customer value. Therefore, the third level in the product level model is increasing the offering and set of benefits to the consumer. Factors include the benefits the product offers the consumer, the kind of features most often purchased with the product, and the added features that consumers ask for in the product.

The core need or benefit The first level at the center of the model is the core need or benefit that the product is trying to meet or deliver. If you buy an iPad, you get more than the core customer value e. Five Product Levels 1. Why does a consumer buy a magazine?Jan 06,  · This video explains the levels of a product which includes 1) Core product 2) Actual Product 3) Augmented product Iphone is used as an example of levels.

Core Actual And Augmented Product Levels.

Three Levels of a Product

1. Explain various levels of Product with examples? (10 Marks) For many a product is simply the tangible, phsysical entity that they may be buying or selling. You buy a new car and that's the product - simple! Or maybe not. When you buy a car, is the product more complex than you first thought?

In order to actively explore the nature of a product. The augmented product rounds of the three levels of product, being built around the core value and the actual product.

Augmented Product

It simply offers additional consumer services and benefits. If you buy an iPad, you get more than the core customer value (e.g. communication), and also more than the actual product. In order to understand a product better, Kotler proposed examining each product as though it were actually three separate products – the core benefit, the actual product, and the augmented product.

Together, these three separate products are known as the Three Product Levels. Kotler's 'Augmented Product Concept' suggests that all of a product's benefits can be extracted by viewing a product on three levels Core Product.

Level one is the most basic level and simply looks at what people set out to buy and what benefits the producer would like their product to offer buyers. Actual Product.

Three Product Levels (Kotler)

Level two is about. 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.

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Core actual and augmented product levels
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