1. Identify using a model the levels of a product.
Kotler distinguished three components:
need: a lack of a basic requirement;
want: a specific requirement for products or services to match a need; demand: a set of wants plus the desire and ability to pay for the exchange.
core benefit: the service or benefit the customer is really buying. Marketers as benefit provider. A hotel guest – room
basic / generic product change core into basic
represents all the qualities of the product
: a hotel room includes a bed, bathroom, towels, desk, dresser, and closet.
Expected product : all aspects the consumer expects to get when they purchase a product. Hotel guests minimally expect a clean bed, fresh towels, working lamps, and a relative degree of quiet. Augmented product: all additional factors which sets the product apart from that of the competition. And this particularly involves brand identity and image. Is that warm coat in style, its colour trendy and made by a well-known fashion brand? But also factors like service, warranty and good value for money play a major role in this. Potential product: augmentations and transformations that the product may undergo in the future. For example, a warm coat that is made of a fabric that is as thin as paper and therefore light as a feather that allows rain to automatically slide down. The competition between businesses focuses mainly on the distinctiveness of the Augmented Product according to Kotler. It is about the perception a consumer experiences when purchasing a product and it is not so much about value. For production companies it is important to deliver products in an upward trend from ‘Core Product’ to ‘Augmented Product’ and to have the potential to grow into the ‘Potential Product’ Each level of the five product levels adds value for the customer. The more efforts production companies make at all levels, the more likely they are to stand a chance to be distinctive. To be able to tower over the...
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