What are the Five Product Levels

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Sources: fullstory ghbintellect zipinventory Browse articles → Previous article Next article ← Leave a comm Leave a comment / E-commerce The five product levels The Five Product Levels model was developed by economist Philip Kotler in the 1960s. His book, Marketing Management, was voted one of the 50 best business books of all time in the mid-1990s. Kotler changed the way marketing was viewed by emphasizing that it was not a single department, separate from all other departments, but that marketing as an activity was an organization-wide responsibility. In this article, we review what the five product levels are and the most important information about them.




The definition of a product goes far beyond being a physical object or service. He defines a product as anything that satisfies a need or want, and his five-level product model provides a way to show the different levels Iraq Email List of customer needs for a product, such as: basic benefit, general product, expected product, augmented product and potential product. Advantages of the Five Product Levels Kotler's Five Product Level Model provides companies with a proven way to structure their product portfolio to target different customer segments. This enables them to analyze product and customer profitability (sales and costs) in an organized way. By organizing products according to this model, a company's sales operations can be aligned with customer needs and help focus other operational processes around its customers such as design, engineering, purchasing, production planning, costing, pricing, logistics, sales, and marketing .





Grouping products into product groups that align with customer segments helps with sales modeling and planning, as well as production and new product planning. The most prominent advantages of the five levels of the product are the following: 1- Increase customer satisfaction When a company meets customers' wants, needs, and demands, customers feel more satisfied. For example, if customers want more generic options for a product, a company can use the Kotler model to evaluate and satisfy that.