A very crucial knowledge one must have as a marketer is that of product levels. This knowledge and understanding enables the marketer to develop the right product strategy.
Five distinct levels are involved in any product offering. Therefore im planning its market offering the marketer needs to think through this five levels. Each level adds more customer value, and the five level constitutes what is called the customer value hierarchy.
1. Core benefit : The core benefit is regarded as the most important level of product. Buy core benefit will mean the fundamental services or benefits that the customer is really buying. For instance, a hotel guest is buying rest and sleep while the purchaser of cosmetics is buying beauty. Marketers must see themselves as benefit providers.
2. Basic product : At the second level, the marketer has to turn the core benefit into a basic product the specific or particular form of tangible products which helps to deliver the core benefit is what is called the basic or generic products. Thus a hotel room which has to deliver rest and sleep as the core benefits includes a bed, bathroom, towels desk, dresser, and closet.
3. Expected products : At the third level, the marketer or product developer prepares and expected product, a set of attributes and conditions buyers normally expect when they purchase this product. For example, hotel guests expect a clean bed, fresh towel, working lamps and a relative degree of quiet.
4. Augmented product : At this fourth level, the marketer prepares augmented product which refers to additional or extra benefits and services. The augmented product enables the marketer to offer benefits that exceed customer expectations. A hotel for instance can include a remote control television set, fresh towel, rapid check-in, express check-out, and the room services.
5. Potential products : This is the last level of the product and refers to what the product will be in the future the potential product encompasses all the possible augmentation and transformation the product might undergo in feature. The potential product requires companies to search for new ways to satisfy customers and distinguishing the office. Example, all suits hotels where the guest occupies a set of rooms represents an innovative transformation of the traditional hotel product.
