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Three Layers of a Product

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Submitted By budepest
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he concept of “three levels of a product” actually comes in play when you are finalizing a product for your business or when you want to analyze a product. Just like any business, a product too has its hierarchy. A product can be divided into three levels which are a series of different features and benefits which helps in its segmentation targeting and positioning. Thus the three levels of a product are the ones which help to define the product in a better manner. These three levels are
Levels of a productImage courtesy – marketingteacher.com
1) Core product
2) Actual product
3) Augmented product
The terms “Core product” and “Actual product” have a very slight differentiation between them but it is vital that marketers understand this difference. Only by defining your core product clearly, you can achieve marketing excellence. Core product is also known as benefits and is general intangible in nature. Lets take an example.
Supposing you are planning on launching your own car manufacturing unit. What would be your core product? Would it be the car itself? NO. The core product would be convenience to your customers. Your customers can also travel by bus or taxi. But they prefer cars because of convenience as well several times because of status symbol. Thus the core product in case of Tata cars will be convenience and value for money whereas in case of BMW it will be Status symbol.
Thus the concept of core product is simple. The Actual product is the one which is manufactured after a decision has been taken on what your core product is going to be. Thus, from the above example, if your core product is a status symbol, your actual product will be a very high quality product with high pricing. On the other hand if the product is a convenience product, the production would be on the basis of Value for money. Actual products are quantifiable in nature and have

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