Five product levels philip kotler marketing training from epm. The marketing mix, in its general form, includes decisions and activities of business firms in the areas of product policy, channel policy, promotional policy, and pricing policy. The fundamental need or want that consumers satisfy by consuming the product or service. Demographics is very important in marketing especially for network marketing. Three product levels kotler marketing training from epm. These two factors raise the importance of a members responsibility to train, support and motivate their downline organization. In the book principles of marketing philip kotler et al devised a very interesting concept of benefit building for products. Marketing management is the process of planning and. In single level direct selling, direct seller is also the consumer and direct seller sells the product or service of the company. Product standardization and adaptation in international. Kotlers model of levels of a product and applying it to the travel service are main contributions. The strategic role of product management how a marketdriven focus leads companies to build products people want to buy 5 product management is a wellunderstood role in virtually every industry except technology. The study concluded by recommending among others that organization should seek consumer need, want and taste before embarking on production and management should have planned marketing strategy for the product at all level of its level.
Levels of product differentiation in the global mobile phones market. Please note that there is a separate article on this website that discusses the three product level. Kotlers book, marketing management 15th edition, was voted one of the 50 best business books of all time in the mid1990s by the financial times. In order to give benefits to customers, a marketer articulates the product concept. The marketing mix, in its general form, includes decisions and activities of business firms in the areas of product policy. These needs range from core needs to psychological needs. His book, marketing management, was voted one of the 50 best. Philip kotler developed a marketing model that recognises customers have five product levels of need, ranging from functional or core to emotional needs. Most marketing textbooks will show the products as having three distinct levels, namely the core benefit or need, the actual product itself, and the augmented. Michael porter regarded the selection of a defendable position within an industry as the end result of a competitive strategic analysis. Ideally, marketing should result in a customer who is ready to buy. Five product levels philip kotler marketing training.
It is a kind of hybrid of the method of distribution of goods and the method of building a sales network. The following table identifies five eras in the history of marketing. By analyzing the product at different levels, a marketer can have a better understanding of the product s competition, how the design meets the needs of the market, and how it can be supported and clearly differentiated in the marketplace. As business studies product marketing mix product levels. Each level has specific qualifications and associated. Through the example of purchasing a tv, lets examine each of the three product levels. Most marketing textbooks will show the products as having three distinct levels, namely the core benefit or need, the actual product itself, and the augmented product.
When purchasing a tv the core product is obviously the need to watch television programmes. Kotler suggested that if you view a product on three levels it will help you extract all the benefits that your product. Different levels of product is described in this video. What you buy is a complex bundle of benefits that aim to satisfy your needs. According to philip kotler, who is an economist and a marketing guru, a product is more than a tangible thing. In order to actively explore the nature of a product further, lets consider it as three different products the core product, the actual product. Five product levels in marketing the marketing study guide. Each is important to understand in order to address the. Multi level marketing is a very popular business model in the western countries. The three product levels in marketing the marketing. A version of the product containing only those attributes or characteristics absolutely necessary for it to function. For this reason philip kotler states that there are five product levels. In our bank example, this could be a unique account number with a check book or an atm. Marketing is key for network marketing businesses to survive.
Three levels of product are involved in any purchase. Although marketing has always been a part of business, its importance has varied greatly over the years. Employees can only do so much in marketing, that is why a marketing strategy should also be developed to make sure the networking business reaches a number of market segments. Please note that there is a separate article on this website that discusses the three product level model. A product definition at least includes the elements of product positioning, product differentiation and product life cycle. Direct selling further includes single level marketing and multi level marketing. The customervalue hierarchy in planning its market offering, the marketer needs to address five product levels see below each level. The five product levels model was developed by economist philip kotler in the 1960s. There are four levels of a product shown in the figure below. Three levels of product core value to augmented product. The whole product concept considers i core customer benefits, ii the actual product. The five product levels model was developed by philip kotler in the 1960s.
A diversified company needs multiple marketing strategies, each for a different product. With this document, you can ensure that the product launch activity flow and the marketing. The product concept defines the whole range of benefits a product offers to the customers. Having a marketing strategy presentation is essential for any business, large or small. It forms the base plan that the company will use to attract clients and sell its product. A product meets the needs of a consumer and in addition to a tangible value this product also has an abstract value. One of the reasons that you need to determine the types of product is to analyse where your product is weaker, or where it has more potential. Levels of product differentiation economics web institute. Generic product the generic product is a basic version of the product made up of only those features necessary for it to function. However, many experienced marketers define the product as having 5 product levels and not 3 product levels. The three product levels in marketing one helpful way of thinking about a product as a marketer is to split the product into levels. The levels of product include the core customer value, the actual product and the augmented product. A great product launch marketing plan is one that can effectively showcase all the marketing components and elements that are needed to be present in a timely manner. This presentation is all about the different levels of a product in hindi.
Products and services may be thought of as having different levels of importance to those who consume them. A functonal form of organizational at the corporate level. After watching this video you will get to know the following things. Marketing inthe1960s,theeconomistphilipkotlerchangedthe. The product sales made by a member and their downline organization.
Product this element of the marketing mix considers the technical features, benefits and limitations of the product or products. Objectives of the marketing plan a marketing plan will also outline objectives, most often on multiple levels. The actual product offered is subdivided into a number of levels. An organisations product line is a group of closely related products that are considered a unit because of marketing, technical or enduse considerations. As stated previously, the core product is rarely used as the basis of a marketing campaign. There are three fundamental types of product classification which are durable and non durable products and pure services. Engage your students during remote learning with video readalouds. This also means that when marketers develop products. The wholeproduct concept and its three levels are discussed and examples are. However, three distinct marketing levels should be included in every marketing initiative. Before kotler, marketing existed within a silo, the marketing department.
He argued that successful, profitable companies generally choose to compete on either low costs or by differentiating their products. Durable products are those products, which are used for longer. Kotlers five product level model provides businesses with a proven method for. Therefore, as the product being part of the marketing. Levels of product differentiation in the global mobile phones market the sixth product level called compliant product is a connecting element between the physical product characteristics and the strategy of the producer company stanimir andonov the article discusses the differentiation among the product. At each product level, more customer value is added. Marketing is often characterized as more of an art than a science. It can be difficult to know how to go about marketing a product in a systematic way.
1334 1515 1437 374 1016 378 746 1409 671 1311 401 1135 515 1214 355 1257 491 893 236 528 1633 867 703 1330 1095 1497 1203 926 86 1246 869 393 533 787 1387 327 657 660 622 382 1165 628 826