what is kotlers five product levels model with benefits

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.

He defines a product as anything that can meet a need or a want, and his Five Product Levels Model provides a way to show the different levels of need customers have for a product, such as: Core benefit, Generic Product, Expected Product, Augmented Product and Potential Product.

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:

  • Core benefit: The fundamental need or want that consumers satisfy by consuming the product or service. For example, the need to process digital s.
  • Generic product: A version of the product containing only those attributes or characteristics absolutely necessary for it to function. For example, the need to process digital s could be satisfied by a generic, low-end, personal computer using free processing software or a processing laboratory.
  • Expected product: The set of attributes or characteristics that buyers normally expect and agree to when they purchase a product. For example, the computer is specified to deliver fast processing and has a high-resolution, accurate colour screen.
  • Augmented product: The inclusion of additional features, benefits, attributes or related services that serve to differentiate the product from its competitors. For example, the computer comes pre-loaded with a high-end processing software for no extra cost or at a deeply discounted, incremental cost.
  • Potential product: This includes all the augmentations and transformations a product might undergo in the future. To ensure future customer loyalty, a business must aim to surprise and delight customers in the future by continuing to augment products. For example, the customer receives ongoing processing software upgrades with new and useful features.
  • 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.


    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.

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