Do you want to know what a product is and what the different levels of a product are? You are in the right place to understand these concepts clearly.
Before exploring the levels, it is important to understand what a product or service actually means and how it fits into marketing.
What is Product?
A product is any market offering that can be presented to obtain attention, acquisition, use, or consumption, and that satisfies a need or want.
It includes not only physical goods but also services, organizations, people, places, and ideas.
“Pure” services are different from physical products because they are intangible, inseparable, variable, and perishable.
What is Service?
A service is a type of product that consists of benefits, activities, or satisfactions offered for sale. It is essentially intangible and does not result in ownership of anything.
Product should be carefully defined because it is a complex concept. It is the starting point of strategic planning and is considered the first variable of the marketing mix.
Product strategy requires coordinated decisions regarding product lines, individual products, and product mixes.
Levels of Products and Services
There are three levels of a product that marketers must consider when designing products and services for customers.
1. The Core Product
When customers purchase a product, they are actually buying the basic benefit or solution it provides. This is known as the core product.
It answers the key question: What is the buyer really purchasing?
2. The Actual Product
The actual product includes the features that combine to deliver the core benefit. These features make the product tangible and identifiable.
These include:
- Quality level
- Design
- Features
- Packaging
- Brand name
All of these elements work together to create the product that customers recognize and evaluate.
3. The Augmented Product
The augmented product includes additional benefits and services that are built around the core and actual product.
These may include after-sales service, warranties, delivery, and customer support, which enhance the overall customer experience.
Final Understanding of Product
A product is not limited to just physical characteristics. Consumers view products as a bundle of benefits that satisfy their needs and wants.
Therefore, when developing a product, marketers should follow three key steps:
- Identify the basic needs that the product will satisfy
- Design the actual product
- Determine how to enhance the product to deliver greater value and a better customer experience
Conclusion
Understanding what a product is and recognizing its different levels helps businesses create offerings that truly meet customer needs.
By focusing on the core, actual, and augmented levels, marketers can design products that not only solve problems but also deliver value, satisfaction, and a better overall experience to customers.
See Also: Market Segmentation and Its Levels
