Kotler suggested that a product should be viewed in five levels.
Level 1: Core Product. What is the core benefit your product offers? This is the fundamental benefit or service that the customer is buying. For eg. A customer going to a Hotel is buying rest, sleep etc.
Level 2 Basic Product: Basic functional attributes. All Hotels provide rest and sleep. The aim is to ensure that your potential customers purchase your one service. Thus the functional attributes like Room, Bed, Bath are important.
Level 3 : Expected product : Set of attributes that the buyer expects (Clean room, large towels, quietness)
Level 4: Augmented product: What additional non-tangible benefits can you offer? This meets the customer’s desires beyond his expectations – (Prompt room service, music, aroma etc)
Level 5 : Potential product : The possible evolutions that can be made to make the product a distinguished offer (all suite room)
In a Bank these can be
Core Product (Safety of deposits, Interest, Easy loans
Basic product : Savings deposit, FD, Recurring deposit
Expected product : Correct transaction records, timely service, convenient timing
Augmented product : Congenial waiting room, Water cooler
Potential product : Greetings for New Year, 24 hour banking
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