Q. The most basic level of a product is called the:
The concept of a Core Product originates from Philip Kotler, in his 1967 book - Marketing Management: Analysis, Planning, and Control. It forms the first level of the concept of Three Levels of a Product.
Kotler suggested that products can be divided into three levels: core product, actual product and augmented product. The core product is defined as the benefit that the product brings to the customer. The actual product refers to the tangible object and relates to the physical quality and the design. The augmented product consists of the measures taken to help the consumer put the actual product to use. By using a mixture of the three levels of product in research and development, business firms can better understand their customers, better position themselves in the market and create a more successful product.
- Core product
- Central product
- Fundamental product
- Augmented product
Answer: A
The most basic level of a product is called the Core ProductThe concept of a Core Product originates from Philip Kotler, in his 1967 book - Marketing Management: Analysis, Planning, and Control. It forms the first level of the concept of Three Levels of a Product.
Three Levels of a Product.
Kotler suggested that products can be divided into three levels: core product, actual product and augmented product. The core product is defined as the benefit that the product brings to the customer. The actual product refers to the tangible object and relates to the physical quality and the design. The augmented product consists of the measures taken to help the consumer put the actual product to use. By using a mixture of the three levels of product in research and development, business firms can better understand their customers, better position themselves in the market and create a more successful product.
Core Product
A core product is a company product or service that is most directly related to its core competencies. The core product enables the use, benefit or problem-solving service for which the consumer is purchasing the product.
Actual Product
Actual Product is the physical or tangible product which a consumer buys to get the CORE benefits that this product has in an offering. For example, if the core benefit that a consumer seeks is READING then a BOOK is the Actual product.
Augmented Product
The Augmented product is the non-physical part of the product. It usually consists of lots of added value, for which you may or may not pay a premium. So when you buy a car, part of the augmented product would be the warranty, the customer service support offered by the car's manufacturer and any after-sales service.
The New Product Development (NPD) process, often referred to as the Stage-Gate innovation process, was developed by Dr. Robert G. Cooper as a result of comprehensive research on reasons why products succeed or fail. The process initially focuses on idea generation that defines the core product. If the core product is innovative and addresses market demand, it can lead to successful actual products.
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