Kotler’s five product levels model is a comprehensive approach to understanding and addressing consumer needs through marketing. This model breaks down the process of marketing into five distinct categories and provides businesses with the tools to create an effective and comprehensive marketing strategy. The five product levels model was developed by marketing guru Philip Kotler and provides great insight into the complexities of marketing. This model has been used by a variety of industries and brands to successfully identify and address consumer needs. In this blog post, we will explore the five product levels model and discuss the associated benefits to businesses and consumers. We will also discuss how the five product levels model can be used to find the right marketing mix and help businesses to effectively reach their target audience.
Kotler’s Five Product Levels Model
Review product details
Think about the attributes your product possesses and the standards those attributes must meet. This aids a business in determining which features of a product it can modify to satisfy a wider range of desires, needs, and demands. For instance, if a sales representative for a laundromat determines that the facility meets core benefits and offers an anticipated service, they may offer more general and enhanced services.
Core benefit
This is the level of a product that meets a consumer’s fundamental desire or need. For instance, selling pet care products is a pet store’s primary benefit. The main need that customers can satisfy by purchasing a product is the core benefit.
Augmented product
This is used to describe a product that a business enhances with additional features that go beyond its fundamental functions. Companies might take this action to increase the product’s competitiveness against similar goods. For instance, a restaurant may draw customers by hosting live music events and performances there.
The five product levels are:
This is a really important concept. Whatever the product, there are almost always a few levels that offer extra benefits. A companys “offer” is always supported by some other services. Despite being the most basic of products, commodities have additional value due to the company that sells them, the promptness and dependability of their deliveries, their capacity to resolve issues as they arise, and other factors. On the other end of the spectrum are luxury items like perfumes, where the brand, the packaging, and the feelings they evoke serve to support the products.
In his 1967 book Marketing Management, Philip Kotler outlines five levels of a product. He said there is more competition at the augmented level than at the core level. People prioritize and differentiate the elements that “wrap around” the core product, such as packaging, delivery, promotion, and advice.
Understanding the Five Product Levels model
According to Kotler, a product is anything that can satisfy the needs or desires of customers. It’s crucial to remember that many needs and desires have nothing to do with a product’s functionality.
In other words, a consumer’s needs and wants are more ethereal.
Any business should aim to provide items with abstract value. Since the consumer receives this value in addition to the product’s usefulness, they are more likely to be satisfied with their purchase.
When a product’s perceived value is in line with its actual value, satisfaction also rises.
A product’s brand develops an emotional connection with the consumer once it has a high perceived value.
This builds brand equity and guarantees that a company is top-of-mind when a customer needs to make a purchase the next time.
We’ll examine each of the five levels in greater detail in the following section.
FAQ
What benefits does the model five product levels provide?
What advantages does the model offer? Kotler’s Five Product Level model gives companies a tried-and-true way to organize their product portfolio to target different customer segments. This makes it possible for them to structure their analysis of customer and product profitability (sales and costs).
What is the core benefit of Coca Cola?
Core Benefit Coca-Cola’s main advantage is quenching thirst.
What is the importance of product levels?
Product levels are a term used by salespeople to describe how precisely a product can satisfy the various demands, needs, and wants of customers. Businesses can achieve this by modifying and introducing goods that appeal to customers at various value levels and categories.
What is core benefit level of a product?
This is the level of a product that meets a consumer’s fundamental desire or need. For instance, selling pet care products is a pet store’s primary benefit. The main need that customers can satisfy by purchasing a product is the core benefit.
