Product Offering Levels in Product Management
In Previous blog we discussed about “Product and Product Management”. If you did not check it out, do check it out.
In this Blog, we will explore the Levels of Product Offerings.
The levels of a product offering encompass different tiers or stages of a product, delivering varying levels of features, benefits, and value to customers. These tiers cater to diverse customer segments and their specific needs, providing distinct offerings within a product line.
By offering various levels, businesses effectively address the range of customer requirements, accommodate different budgets, target specific market segments, and create opportunities for upselling and customer satisfaction.
Now we have understood the basics of Levels, Now lets understand “Total Product Concept”.
Total Product Concept
The total product concept is a marketing framework that emphasizes the idea that a product is more than just its physical attributes. It takes into account all the elements and aspects surrounding a product that contribute to its overall value and customer satisfaction.
The total product concept recognizes that customers seek not only the core benefits provided by a product but also the entire package of features, services, and experiences associated with it. It includes both tangible and intangible aspects that enhance the overall offering and differentiate it from competitors.
Now lets understand all concepts one by one
Core benefit: The core benefit represents the primary value or fundamental problem-solving aspect that customers seek when purchasing a product. It focuses on fulfilling the basic need or desire that the product addresses.
E.g., A phone with only calling and messaging functionality
Generic product: The generic product refers to the basic features and attributes that customers expect from a product within a particular category. It includes the essential functions and characteristics that are common to all products in that category.
E.g., Generic product of a smartphone would include the ability to make calls, send messages, and access the internet.
Expected product: The expected product represents the set of attributes, features, and quality that customers anticipate when they purchase a product. It encompasses the minimum requirements and standards that customers expect the product to meet.
Expected Product = Core Product + Generic Product + Purchase condition
E.g., Expected product of a smartphone would include a certain level of performance, reliability, usability, functioning camera, and Memory.
Augmented product: The augmented product includes additional features, services, or experiences that go beyond the basic expected product. It provides extra value and enhances the overall customer experience.
Augmented product = Core Product + Generic Product + Expected Product + Additional Things
E.g., Augmented product elements for a smartphone could include a fingerprint scanner, voice assistant, pre-installed apps, or a premium packaging.
Potential product: The potential product refers to the future possibilities and potential improvements that a product may offer. It represents the innovative and forward-thinking aspects that can be added to the product over time to meet changing customer needs and preferences.
Potential product = Augmented product + Possible future enhancements
E.g., The potential product for a smartphone might involve advancements in technology, such as foldable screens, Booking a cab, Controlling an AC, improved battery life, or new connectivity options.
It’s important to note that the generic, expected, augmented, and potential product levels are not fixed or universally defined, and they can vary depending on the industry, market, and specific product. These levels help businesses understand and cater to different customer expectations and differentiate their offerings in the market.
Thank you for reading this blog. In future, I will adding more information about Core product management.
Links to other blogs:
Product and Product Management
Requirements and Requirement Gathering for Business Analysts
What is Business analysis?
Who is a Business Analyst?
