What is a Product really? It is anything that a firm offers to satisfy the needs or wants of the market. This could include physical goods, services, person, place, information, experiences, etc.
Customers judge the product/service offering based on the quality, features, and price, and then choose a product based on the perceived value.
Product differentiation plays a key role in strategically positioning the firm's product/service differently vis-à-vis the competitors's products, and helps in transitioning the product from the customer's consideration set to the choice set (actual purchase).
KOTLER'S 5 PRODUCT LEVELS MODEL
Philip Kotler developed this model, which proposed that any product may have up to 5 product layers (in the form of concentric circles) based on the amount of differentiation provided – Core, Basic (or Generic), Expected, Augmented and Potential Product.
CORE NEED LEVEL: This level fulfills the very basic need of the cu (...) Read more? Sign up for free