Explain various levels of Product with examples? (10 Marks)
For many a product is simply the tangible, phsysical entity that they may be buying or selling. You buy a new car and that's the product - simple! Or maybe not. When you buy a car, is the product more complex than you first thought? In order to actively explore the nature of a product further, lets consider it as three different products - the COREproduct, the ACTUAL product, and finally the AUGMENTED product. These are known as the 'Three Levels of a Product.' So what is the difference between the three products, or more precisely 'levels?'
The CORE product is NOT the tangible, physical product. You can't touch it. That's because the core product is the BENEFIT of the product that makes it valuable to you. So with the car example, the benefit is convenience i.e. the ease at which you can go where you like, when you want to. Another core benefit is speed since you can travel around relatively quickly.
#1 Core Product
The problem-solving services or core benefits that consumers are really buying when they obtain a product/service. Core Benefit Proposition â€“ the key benefits of a product can be identified in a statement called CBP. The CBP differentiates the product from its competitors. Examples:
• Bufferin Pain Reliever: As effective as aspirin but will not upset stomach. • American Express Travelers Checks: Accepted everywhere; prompt replacement and complete protection if lost. • Silkience Self-Adjusting Shampoo: A shampoo that provides the appropriate amount of cleaning treatment for different parts of your hair. Cleans the roots without drying the ends of your hair. Actual Products:
The ACTUAL product is the tangible, physical product. You can get some use out of it. Again with the car example, it is the vehicle that you test drive, buy and then collect.
A product's parts, styling, features, brand name, packaging, and other attributes that combine to deliver core product...
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