The product levels developed by Philip Kotler in the 1960s seek to highlight their different needs.
With this concept we want to demonstrate that a product is more than a tangible element. Do you want to know more about these levels? Well, here we are going to define them, in addition to talking about their advantages and much more. Keep reading!
What is a product?
Product is the name given to the elements that are offered to people so that they can acquire, use or consume them. However, in product levels this term has a broader definition, beyond the tangible.
When the five levels of supply of a service or product are handled, not only physical aspects are included, but also ideas and even peoplewhich must be able to satisfy the needs or desires of customers.
The products are based on perceptual aspirations, emotional associations, and psychological expectations of those who wish to acquire them.
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How to differentiate a product from a service?
To use the product levels in marketingIt is necessary to know how to differentiate between products and services. If you learn to do it, you will know what are the best strategies to apply them in your business.
Next, we show you key differences between products and services:
1. They are usually tangible
The main difference is that a product is tangible, can be perceived by the senses even when not consumed. It is possible to see, touch, smell and even hear or taste products that you are thinking of purchasing, even if they are.
Secondly, a service is intangible, has to be consumed or purchased in order to be perceived. For example, if you want to see and feel your haircut, you need to pay for the hairdresser’s service.
2. They are storable and perishable
Those who sell products know that they can be stored, inventoried and preserved over time. The same does not happen in brands that offer services, as they are not tangible, they are not stored or part of an inventory, even if they are digital products, they are tangible and need storage.
3. Need and trust
Those who purchase certain products do so to cover specific needs. On the other hand, services, people buy them based on perceived quality what they have of them.
Of course, product businesses that want must also create relationships of trust. However, these have greater relevance in service marks.
Despite the differences that exist between actual product and service, both must be studied carefully. Brands that sell either must do the following:
- Determine how they behave after doing the or physical.
- Make plans for times when products and services have less activity.
What are product levels in marketing?
The dimensions of a product They help you adapt to the current needs of those who decide on your business. The idea is that your products become objects of desire for your customers, so they will decide to buy them.
The product levels they are in charge of indicating how much value people can give to what you offer them. Your goal should be to deliver the quality you promise to your customers, so they will be satisfied.
Why is it necessary to differentiate product levels?
Dedicate time to know and differentiate the product levels It is a really important process. This will help you meet the needs of those who choose your business.
The benefits of differentiating dimensions of a product are:
1. Tiers cover all customer needs
when we tell you what are the product levels you will realize that these cover all the needs of those who obtain products from your brand.
The dimensions range from basic needs to specific aspects that help satisfy your customers.
2. They apply to different kinds of products
The product level examples I know They apply to all classes of products that exist, from consumer to industrial. Therefore, regardless of what your brand sells, you can take advantage of the dimensions of the products.
3. They are easy to apply
Once you differentiate the levels, you will realize that applying them is easy. To do so, you must carefully analyze each product from your business catalog.
When you study them, you will be able to determine which Kotler level is more convenient for you.
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What are Kotler’s 5 product levels?
If you want to have the or higher quality services, you do well to apply the product levels. As we have seen so far, they will help you meet the needs of your customers.
In that way, you will convince them to continue choosing your brandthat is, you will retain them.
The dimensions of a product are as follows:
1. Basic benefit
It is the most important dimension of any product or service and must be fulfilled to apply the others. It is also known as “essential benefit” and refers to the main need you satisfy with your products or services.
How much most relevant are the benefits it offers the product, the more people who buy from your business will need it.
An example of a basic benefit is why does someone buy a cell phone. The goal in purchasing this device is to stay in touch or connected.
All cell phone brands cover the mentioned need, so, to stand out from the competition, they must apply the next level of product.
2. Generic product
It also receives the name of “Commodity” and represents the characteristics that allow it to cover the basic needs. The ideal is to work to enhance these factors, so you will be able to stand out.
This level is made up of a basic version of the product that has the characteristics that allow it to function correctly.
Going back to the cell phone example, so that be an attractive product for those who need it, it should have the following characteristics:
- Microphone and speakers to make quality calls.
- Comfort to write messages.
- Access to Wi-Fi and phone companies to stay connected.
- Good storage for downloading social networks and other applications.
When brands have these characteristics, meet essential needs of those who decide on their products. In addition, it is expected to have functions that improve the user experience, which are part of the next level.
3. Expected product
When you buy a product, you expect it to have certain qualities that, although not essential, increase its value. The expected benefit dimension is made up of minimum requirements for the product to be competitive.
The level of expected product It helps you match your competition and guarantee people a good relationship between quality and price.
If we focus again on the cell phone example, how does the expected product? Those who buy modern devices expect them to include the following features:
- Screen with good definition.
- Quality camera.
- In some cases, fingerprint unlock.
Although they are not essential to stay connected, they certainly improve the experience of using a mobile.
because they are characteristics assumed within the market current technology, if you go to a store and they tell you that a modern cell phone does not have a camera, you would not be convinced to buy it.
With the expectation of the product you manage to match the competition. But how to overcome it? The next dimension will help you.
4. Increased product
Think about your competition and what it offers, now create features that help you outperform their products. These are the ones that are part of the augmented product, everything you do to contribute to the of what you sell exceeds people’s expectations.
The increased dimension perfectly complements the three product levels explained before. In it, the identity of your brand is also involved, since your objective is to offer something that goes beyond what is expected.
It can be said that the augmented product fulfills the wishes and requirements of the customers. To create features that help you stand out, you must consider both generic and expected product.
The increased dimension is exemplified by brands launching new cell phones every year, improving their interfaces, cameras, storage, and more.
With the application of this level you add unique value to your products and you can differentiate yourself from the competition.
5. Potential product
The four levels of supply of a service or product previously explained are complemented by the potential product, focused on the transformations or improvements that can be applied to the products.
The modifications that are made must be capable of win customers and retain the ones your business already has.
To apply the level of potential product, it is necessary to use the imagination and the capacity to innovate. That way you will be able to implement a feature in your products that does not yet exist.
Kotler’s product dimensions complement each other and each level supports the previous one. As a result, those who apply them satisfy the needs and even the wishes of their clients.
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Example of Product Levels in Marketing
So that you better understand how to apply what we have explained, we will give you product level examples. We will focus on a currently recognized brand that has applied all the dimensions analyzed.
The brand that we will focus on is Tesla and its participation in the automotive market:
1. Basic Benefit Example
The fundamental need that Tesla is responsible for covering is that of move from one place to anothermanufacturing and selling fully functional automobiles.
Tesla cars have the essential characteristics to cover the main need of those who decide to buy them:
- Quality tires, with unique acceleration and outstanding traction.
- Efficient batteries that give excellent autonomy to your cars.
- Steering wheel.
2. Generic product example
People who buy Tesla cars can rest assured that they will receive just what they imagine. The vehicles have ideal characteristics to cover the need to be transported safely.
In addition, the brand strives to create cars that are comfortable on the inside as well as attractive on the outside. They have a modern look which is on par with its excellent operation and performance.
In the case of batteries, they offer autonomy for more than 400 kilometers for a charge. These features make Tesla efficiently meet the generic product level.
3. Example of expected product
What do those who buy their cars expect from the technological brand? Considering its reputation in the automotive market, expectations are quite high.
And Tesla meets them, because it has characteristics…
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