Question

Marketing

In planning its market offering, the marketer needs to address five product levels. They are Core Benefit, Basic Product, Expected Product, Augmented Product, and Potential Product.

Using a family car as an example, describe each product level.

Answer 1

Product level:

1. Core benefit: The core benefit refers to the fundamental need that the buyer satisfies after the purchase of the product. The core benefit is the most essential characteristic of the product.

Family car: A core benefit in case of a family car would be the transportation of a normal size family which would be 4-5 persons from one place to another.

1. Basic product: The basis or generic product refers to the product that has the characteristics or functions only necessary for its function. It is the most basic version of the product satisfying the core benefit.

Family car: A basic product in case of a car would be a car with an air conditioning system, comfortable seats, seat belts and good break system would be considered as a basic product.

1. Expected product: The expected product refers to the product that have some additional characteristics or functions as compared to basic product that the buyer expects at the time of purchase of the product. It is the expected product that the buyer is willing to buy for the exchange of the money.

Family car: The buyer may expect the car to have anti break system (ABS), easy and effective control of radio, Bluetooth, music system, windows, lights and a good security system.

1. Augmented product: The augmented product refers to the characteristics or functions of the product that makes it different and superior from its competitors. These features are beyond the customer’s expectations. These traits help in building the company’s image and leads to the customer loyalty.

Family car: BMW X1 is a classic example of augmented product. It provides easy comfortable driving experience and offers balance through every corner of the road. Rear camera, auto headlamps, auto start-off, auto wipers, parking sensors, and a powerful engine add up in the augmented qualities to the car.

1. Potential product: The potential product refers to the future improvements and transformation that the product may undergo. In order to sustain the market and technology change, the product keep on upgrading and improve its functions. It helps a product to sustain its augmented product position in the market.

   Family car: BMW keeps on improving its auto driving technology to improve the driving experience. It is also    working on an altricial intelligence (A.I.) which will improve the safety issues of the driving. The company is    also working on the electronic cars as the fuel is a scare resource.

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