Technological Innovation

What are 3 Levels of Product?

When we talk about products, we often think of them as something tangible that we can see and touch. However, a product is much more than just its physical form. In marketing, products are classified into three levels: the core product, the actual product, and the augmented product. Understanding these levels is crucial for companies to create and deliver value to their customers. Let's delve deeper into each level.

The Core Product: Meeting Needs and Solving Problems

At the core level, a product serves a specific purpose or fulfills a particular need for the consumer. It aims to solve a problem or provide a solution. For example, a smartphone's core product is communication, enabling people to stay connected with others. The core product goes beyond technical specifications and focuses on the benefits it offers. Companies need to identify what customers truly want and align their core product accordingly.

The Actual Product: Features, Branding, and Design

Moving on to the actual product, this level involves the physical attributes of the product, such as its features, design, and branding. These aspects differentiate one product from another in the same category. For instance, a smartphone's actual product includes its screen size, camera quality, user interface, and the recognizable brand logo. Companies invest heavily in research and development to enhance the actual product, making it more attractive and competitive in the market.

The Augmented Product: Additional Services and Value-Added Benefits

Lastly, the augmented product encompasses all the additional services and benefits that accompany the actual product. This level focuses on delivering an exceptional customer experience and providing value-added services. For instance, when purchasing a smartphone, the augmented product might include warranty, after-sales support, access to exclusive apps, and customer rewards programs. These additional features enhance customer satisfaction and loyalty towards the brand.


Understanding the three levels of product is vital for companies seeking to create value and meet customer needs effectively. The core product addresses the fundamental problem or need, while the actual product concentrates on its physical attributes and branding. Lastly, the augmented product adds further value through additional services and benefits. By considering and delivering on these different levels, businesses can position themselves competitively in the market and build lasting customer relationships.


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