What are the three levels of a product?

The correct answer identifies the three levels of a product as Core, Actual, and Augmented. This framework is essential in marketing because it helps businesses understand the different layers of what a product offers to consumers.

The core level represents the fundamental benefit or the primary need that the product fulfills. For example, if someone buys a car, the core benefit is transportation.

The actual level refers to the tangible product itself, including its design, features, packaging, and brand name, which contribute to how the product is perceived in the market. Using the car example again, this would involve the specific make and model of the vehicle, its color, and the technology included.

The augmented level encompasses additional services and benefits that enhance the product’s use or experience, such as customer service, warranties, or after-sales support. In the case of the car, this could include free maintenance for a certain period, roadside assistance, or financing options.

Understanding these levels helps marketers refine their strategies to appeal to customers at each stage, ensuring that the core needs are met while also providing compelling attributes that differentiate the product in a competitive landscape. This holistic perspective is crucial for effective marketing and business performance.