Which five product tiers are there?
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1. Introduction
Understanding the five different product levels is crucial for marketers as it helps them to develop effective product strategies and meet customer needs. These levels represent the various aspects of a product that provide value to customers.
2. Core Benefit
At the core of every product is the core benefit or core problem-solving capability that addresses the fundamental needs or desires of customers. This is the primary reason why customers purchase the product. For example, the core benefit of a smartphone is communication and connectivity.
3. Generic Product
The generic product level includes the basic features and attributes that make the product functional. It represents the minimum expectations that customers have when purchasing the product. For a smartphone, this would include features like a touch screen, camera, and internet connectivity.
4. Expected Product
The expected product level includes additional features and attributes that customers expect to receive when purchasing the product. These are features that are commonly found in competing products and are necessary to meet customer expectations. For a smartphone, this might include a long battery life, fast processing speed, and a user-friendly interface.
5. Augmented Product
The augmented product level includes additional features and services that go beyond customer expectations and provide added value. These features are not essential but can differentiate the product from competitors and enhance the overall customer experience. For a smartphone, this could include warranty services, customer support, and exclusive apps.
6. Potential Product
The potential product level represents the future possibilities and innovations that could be added to the product to further enhance its value and utility. These are features and services that are not currently available but could be developed in the future to meet changing customer needs and preferences. For example, future innovations in smartphone technology could include advanced AI capabilities, virtual reality features, and enhanced security measures.
7. Conclusion
Understanding the five different product levels is essential for marketers to develop comprehensive product strategies that meet customer needs and expectations. By focusing on each level, marketers can create products that provide value, differentiate themselves from competitors, and adapt to changing market trends.