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Product Levels

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What are product levels?

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Product levels definition

Sales professionals use product levels to assess and assign how exactly a product can meet the customers’ various demands, needs, and wants. Businesses can accomplish this by adjusting and adding products that appeal to clients at multiple value levels and categories. This concept aids companies in adapting to a variety of clients whose preferences frequently change.

No product can be profitable unless it sells, regardless of how effectively costs are reduced or controlled. So, all products need to fulfill the demands and desires of consumers. 

Businesses would ideally customize their products to satisfy each customer's wants and needs because every customer is unique and seeks distinct benefits from items. But, many organizations can’t do this thanks to the sheer scale of their customer base. Instead, they need a way to categorize products in a structure that aligns with client segments, as identified by their needs and desires. 

What are the 5 product levels?

  1. Core benefit - The fundamental want or need consumers satisfy by using the service or product. Let’s use processing digital images as an example.

  2. Generic product - A generic product is the version of the product that just has the features or qualities required for it to work. In our example, a generic product to process digital images could be a free photo editing software.

  3. Expected product - The expected product is the group of qualities or traits that customers often anticipate when they buy a product. For example, they expect their photo processing software will let them crop, adjust colors, and resize images easily.

  4. Augmented product - Augmented products include additional features, advantages, qualities, or associated services that help set the product apart from its rivals. For example, a powerful image processing software that’s included for free when someone purchases a particular computer. 

  5. Potential product - Potential products cover all future augmentations and modifications a product might experience. A company must continue to enhance its products to satisfy customers and maintain their loyalty. For example, you could regularly update the image processing software with new and practical features.

Who created the product levels theory?

The economist Philip Kotler came up with the product levels model. He created the model to recognize the five customer needs levels, ranging from core or functional needs to emotional needs. Moreover, he discovered that the product is only a means to satisfy customers’ needs or wants.

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General FAQ

What are the 5 product levels?
The 5 product levels are core benefit, generic product, expected level, augmented product, and potential product.

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