Kotler’s Five Product Levels Model

Kotler changed the way marketing was viewed by contending that it was not a singular department,
separated from all the others, but that marketing as an activity was an organization-wide responsibility.
He asserts that the definition of a product goes far beyond being a physical object or a service.
Kotler’s Five Product Levels Model includes:
• Core Product Benefit – The basic need or want that the customer satisfies when they buy the product.
• Generic Product - A basic version of the product made up of only those features necessary for it to function.
• Expected Product - Features that the customer expects the product to have.
• Augmented Product – Any product variations or extra features that might help differentiate the product from
its competitors
• Potential Product - All improvements the product might experience in the future.

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 Begin at the bottom product level and list the Core Product Benefits

Kotler’s Five Product Levels Model that the product satisfied. Move up the levels and list specific
attributes and strategies to create competitive differentiation.

Focus Questions
1 Core Benefit Strategies
• • Enter strategy here
Potential Product What significant
• •
Potential improvements might •
Product product •experience
include in the future?

High
2 Generic Product
Augmented Product • • Enter strategy here
What product variations
•
Augmented •
or extra features
help differentiate
might
the •
Product •

Differentiation
product from
competitors?
Expected Product 3 Expected Product
• • Enter strategy here
•
Expected What features
• do
customers expect the •
Generic Product Product • have?
product to

4 Augmented Product
• Enter strategy here
What is the• basic version •
Generic •
of the product with only •

Low
Product those features necessary
•
for it to function?

Core Product 5 Potential Product

Benefit(s) • Enter strategy here
•
What are • the basic
Core Product needs that
• the customer
•
Benefit(s) satisfies when they buy
•
the product?

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Actions
Create an action plan focused on creating and implementing your Five Product Levels Model. Consider the people, processes, and technologies that will
be needed to support your strategies and create competitive differentiation, and the specific actions needed to implement each level of the model.

Actions Owner Due Date

Enter action here Enter owner Enter due date

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