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Product Strategies

When an organisation introduces a product into a market they must ask themselves a number of questions.

  • Who is the product aimed at?
  • What benefit will they expect?
  • How do they plan to position the product within the market?
  • What differential advantage will the product offer over their competitors?
We must remember that Marketing is fundamentally about providing the correct bundle of benefits to the end user, hence the saying ‘Marketing is not about providing products or services it is essentially about providing changing benefits to the changing needs and demands of   the customer’ (P.Tailor) Philip Kotler in Principles of Marketing devised a very interesting concept of benefit building with a product Kotler suggested that a product should be viewed in three levels.


Level 1: Core Product

What is the core benefit your product offers?

Customers who purchase a camera are buying more than just a camera they are purchasing memories.

Level 2 Actual Product

All cameras capture memories.  The aim is to ensure that your potential customers purchase your one.  The strategy at this level involves organisations branding,  adding features and benefits to ensure that their product offers a differential advantage from their competitors.


Level 3: Augmented product

What additional non-tangible benefits can you offer?

Competition at this level is based around after sales service,  warranties, delivery and so on.  John

Lewis a retail departmental store offers free five year guarantee on purchases of their Television sets,  this gives their customers the additional benefit of ‘piece of mind’  over the five years should their purchase develop a fault.


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