Friday, October 14, 2011

Understanding Kotlor's Five Product Levels model

During the second class of Marketing, Paul introduced an analysis tool -- Philip Kotler's Five Product Levels  model. This is a interesting and powerful one!

Philip Kotler, an economist, identified that the most important part of a product is to meet customer's emotional needs rather then basic needs. To illustrate his opinion and help us to understand these needs, he invented a five levels tool.
It is easy to get the core benefit of the product which is just the basic needs, as well as generic product. I was a little bit confusing about the expected and augmented product at first. I thought it's basic expectation, but it is augmented. It's hard to draw a clear line between them, and the most difficult part is to get the "emotional needs!" After doing some examples with Paul, it was getting clear and had a sense.

I think redo the examples by myself  and practice more would help a lot.

Example 1: McDonald's
     Core benefit: hunger
     Generic product: 
          - other brands, such as Subway, Burger King
          - coffee, Latte, cappuccino
          - snakes
          - muffin, lofe, salad
          - noodle or rice
          - cook at home
     Expected product:
          - taste good
          - fast
          - qualified
          - affordable
          - reliable
          - ...
     Augmented product:
          - combo
          - different choices 
          - drive through
          - parking free and lots of parking lots
          - 99 cents coffee
          - seasonal drink
          - kids area
          - birthday party for kids
          - kids combo with toy
          - ... 
     Emotional product:
          - relax, "I don't need to cook and clean"
          - relief, "I don't have any groceries"
          - pride, "I'm the best mother"
          - status, "I'm better than other kids" (kids' view)
          - fashion, "I have the newest toy" (kids' view)
          - successful, "I'v saved time"
          - ...

Example 2: A Pickup Truck
     Core benefit: transportation
     Generic product:
          - other brands, such as Toyota
          - buses
          - bicycles
          - walking
          - subway, sky strain
          - carpool
          - ...
     Expected product:
          - it works
          - warm in the winter, cool in the summer
          - affordable
          - reliable
          - flexible
          - ...
     Augmented product:
          - GPS system
          - panoramic sunroof
          - longer warranty
          - metallic paint
          - fingerprint lock
          - leather Interior
          - ...
     Emotional product:
          - I'm patriotism
          - I'm independent
          - I have freedom
          - I'm better than other men
          - I'm superior
          - powerful
          - I'm a challenger
          - I'm single and ready to hang out
          - .....
         
Example 3: A Mars Bar
    


     

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