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Tuesday, 18 September 2018

Implications of Product Levels

In the marketers efforts to develop and manage a successful product, he has to take into consideration the different levels of the product. Each level is important and must be utilised or considered in giving consumers the required satisfaction. The following are implications of products levels.

 1. In developing any products, the marketer must first think of the core benefits. Without the core benefits there is no way consumers can be satisfied. In order to know what the core benefits should be the marketer must identify the needs of consumers through formal research. It is after determining the needs of consumers that the marketer can see or state exactly what should constitute the core benefits. The core benefits are the solution to the consumers problems or the benefits that will satisfy their needs.

2. The major concern in product development and management is how to use the basic or specific forms of tangible products in delivering the core benefits or solutions to the customers problems. The function of the basic or generic product is to deliver the core benefits to the consumer. The implication here is that the basic product must be made to function effectively in delivering the core benefits. For instance the detergent powder must be able to deliver cleaniness and brightness to the dress, the television set must be able to deliver entertainment, news and information to the consumer, the car must be able to deliver mobility, safety and comfort to the consumer.
 In developing the appropriate basic product, technology and engineering come into play.

3. It is realised that consumers have become experienced in using a particular form of basic product which has already been developed. Because of this experience in the use of existing brands there are certain benefits or services that have come to expect in that product. Once those benefits are included, they would conclude that the product is of satisfactory quality.

 The implication here is that for any product to be developed, the marketer must ensure that the expected products are included. How the marketer should determine the expected product is to research on the consumers who have become knowledgeable and experienced in the issue of existing brands. He will then collect the attributes, or characteristics which a quality product should possess. Consumer research is very important and should be used to determine the expected product.

4. The implication of the augmented product is that marketers should look for ways to give extra benefits to consumers in order to win and retain their patronage. Successful companies add benefits to their offering that will not only satisfy customers but also surprise and delight them. The lighting is a matter of exceeding expectations.

 Today's competition essentially takes place at the product augmentation level full stop according to levitt 1969, the new competition is not between what companies produce in their factories, but between what they add to their factory output in the form of packaging, service, advertising, customer advice, financing, delivery arrangements, warehousing and other things that people value. The product of mentation to be effective, it is expected that the marketer should look at the user's total consumption system, that is the way the user performs the task of getting, using, fixing, and disposing of the products.
 The marketer should note the following points in terms of augmenting his product :

A. first, each augmentation adds cost. The marketer has to ask whether customers will pay enough to cover the extra cost.

B. Second comma augmented benefits soon become expected benefits. For example, today's hotel guests expect a remote control television set and other amenities. This means that competitors will have to device other features and benefits.

C. Third, as the company raised the price of the augmented product, some other competitors can offer a stripped-down version at much lower price.

 5. the implication of potential product is that every organisation must continue to undertake research and innovation in order to develop better products in the future which will give them competitive advantage. What this means is that a company should not assume that it has already succeeded today, fold its arms and do nothing for tomorrow. Any company that does not innovate will definitely find it difficult to survive in the future. Such an organisation may be digging its own grave.
 to research to develop better or innovative products in the future, consumers would come to benefit in a much more satisfactory whereas their needs would be better satisfied.

 Another implication of potential product is that it requires the marketer to adopt more creative and innovative ways of augmenting the company's products in the future.