How can you differentiate your product using Kotler's 5 levels?

Core benefit refers to the fundamental value proposition that drives customers to purchase your product. It encapsulates the primary problem or need your product addresses, distinguishing it from competitors. To effectively differentiate your product, it's essential to grasp what customers truly desire and demonstrate how your offering surpasses others in meeting those needs. For instance, in the case of a fitness app, the core benefit may revolve around assisting users in reaching their health and fitness objectives.

At the core of every product lies the essence of why customers make a purchase – the problem it solves or the need it fulfills. To truly captivate your audience, you must delve into the depths of their desires and pain points. Differentiation at this level requires a deep understanding of customer motivations, aspirations, and challenges. By understanding what drives their decisions and what they seek to achieve, you can position your product as the solution that truly resonates with their needs.

To differentiate your product using Kotler's 5 Product Levels, start with the Core Benefit: ensure your product addresses a fundamental need. For the Basic Product, deliver superior quality and essential features. At the Expected Product level, exceed standard expectations with reliability and good design. Enhance the Augmented Product by offering unique features or services, like exceptional customer support or warranties. Finally, for the Potential Product, continually innovate with new features to maintain interest and loyalty. From my experience, focusing on these levels creates a distinctive and competitive product.

To differentiate your product using Kotler's 5 levels, start by focusing on the core benefit, which is the primary value your product offers to fulfill customer needs. Clearly identify and communicate this benefit to ensure it resonates with your target audience. Once established, build on it by enhancing the other levels: basic product, expected product, augmented product, and potential product. By emphasizing the unique core benefit and delivering superior value across all levels, you can set your product apart in the market.

The basic product comprises the essential features and attributes necessary to fulfill the core benefit. It represents the minimum viable offering that meets customers' expectations. To distinguish your product at this level, it's crucial to ensure that it meets the basic standards of quality, functionality, and usability expected by your customers. For instance, in the context of a fitness app, the basic product may encompass features such as a range of workouts, a progress tracker, and an intuitive user interface.

The essential features and functionalities that define your product. Meet basic customer expectations in terms of quality, performance, and usability. Example: A basic running shoe would have a sole, cushioning, and upper, but no high-tech features.

Level 2 Generic Product: Enhance the basic functionality and features of your product to differentiate it from competitors. This level involves adding features that are expected in the market but may not be unique.

Regarding the basic product level in a hotel business (as continued with the core benefit level), the offered room should meet the basic amenities enabling a valid stay for the customer.

Many people walk away from the possibility of surprising product features. They fail to see that this is also an opportunity for differentiation. If my product is very similar to others on the market, then I have the opportunity to offer surprising features and provide an experience that others don't.

The expected product represents the features and attributes that your product should possess to align with customers' expectations and preferences. It encompasses the level of performance and service that customers anticipate from your offering. To differentiate your product at this level, it's essential to surpass customer expectations and provide added value. For instance, in the case of a fitness app, the expected product may comprise personalized recommendations, social features, and gamification elements, enhancing the user experience beyond basic functionality.

The expected product is what extra things people anticipate. For our raincoat, this might mean it's not just waterproof but also breathable and stylish. Meeting these expectations is crucial.

The expected product represents the features and attributes customers consider "standard" for your product category. Here, differentiation goes beyond simply meeting expectations. It's about exceeding them and providing additional value that compels customers to choose your offering over the competition. They are different strategies for differentiation: Feature Enhancements, Superior Customer Service, Value-added Services and Focus on UX. This is how you can transform your expected product from "meeting the baseline" to a key differentiator that attracts and retains customers.

These are the attributes and conditions that buyers typically expect when they purchase a product. To differentiate, exceed these basic expectations by offering something extra—better customer service, more convenient packaging, or a longer warranty. Ensuring your product consistently meets and exceeds these expectations can build loyalty.

There will always be a similar product or service available. You need to differentiate yourself from your competitors by exceeding customer expectations. People love status and to differentiate themselves from others and so your products should give them that ability to say ‘’but can your XYZ do this?’’ This heightens the value of your product and differentiates from competitors. A very basic example of this would be designer sunglasses. The core product is it blocks out sun rays. The actual product is the branding and the quality of the sunglasses. The augmented product is the free designer case that comes with the sunglasses and the interchangeable lenses, the lifetime warranty. The extra wow factor.

Additional features and services that exceed customer expectations and add value. Differentiate yourself from competitors and create perceived value. Example: Augmented features could be personalized fit recommendations, performance tracking apps, or warranty extensions.

While exceeding expectations is important, the augmented product aims to create an emotional bond with customers. It delivers features that resonate with their values, aspirations, and sense of identity. In the fitness app example, consider integrating mindfulness and nutrition guidance, creating tailored challenges for different motivational types, or incorporating charitable giving options to connect with customers on a deeper level

This level adds additional features, benefits, or services that differentiate your product further. This could be through advanced technology, exclusive content, or superior customer support. Differentiation at the augmented level might involve offering personalized experiences, membership perks, or unique after-sales services that enhance the overall product value.

Hay muchas formas de innovar en el nivel de producto aumentado y esto puede marcar una gran diferencia en cómo se percibe tu oferta. 1. Añadir características o funcionalidades adicionales. 2. Mejorar la experiencia del Usuario. 3. Ofrecer servicios complementarios. 4. Incorporar elementos de exclusividad como ediciones especiales. 6. Crear ecosistemas de productos, Apple es experto en este tema. 7. Innova en la entrega y distribución. Implementar estas estrategias te permitirá innovar en el nivel de producto aumentado y diferenciarte en un mercado competitivo, ofreciendo un valor adicional que resuene con las necesidades y expectativas de tus consumidores.

Focusing on the "Potential Product" level involves envisioning future attributes that create unique value. To stand out here, anticipate and shape future needs with transformative elements customers haven't yet imagined. For example, for a fitness app, this might mean integrating wearable devices, smart home features, and health insurance partnerships, surpassing conventional offerings and anticipating future customer desires. This visionary approach sets the product apart by addressing evolving needs proactively.

Future possibilities and innovations that could be incorporated into your product. Demonstrate your commitment to continuous improvement and customer satisfaction. Example: Potential features might include self-adjusting laces, energy-harvesting technology, or AI-powered coaching.

Don’t predict the future— create it. Transform your fitness app into a health revolution. Integrate advanced wearables for early health crisis detection, offer VR workouts, and partner with biotech for genetic health plans. Make your product the future of personal health. Lesson from Space Industry: "The Frontier Approach" 1. Biometric Wearables: Predict health issues before they arise. 2. Virtual Reality: Immersive workouts for a new experience. 3. Biotech Partnerships: Personalized health plans based on genetics. 4. Continuous Innovation: Stay ahead with regular updates. 5. Integrated Ecosystem: Seamlessly fit into users' lives. Make your product the future of health innovation.

The potential product represents everything the product could become in the future. Differentiate by continually innovating and evolving your product, staying ahead of trends, and anticipating customer needs. This might include introducing new features, expanding product lines, or integrating cutting-edge technology. Show your customers that you’re committed to constant improvement and adaptation.

Aquí prácticamente estamos vendiendo un sueño, una visión de lo que el producto puede llegar a ser. Algunas formas de transmitir esto, es: 1. Define una visión clara que comunique cómo tu producto potencial resolverá problemas futuros. 2. Destaca cómo el producto se alinea con tendencias emergentes, avances tecnológicos o cambios en las necesidades del mercado. 3. Crea una historia del futuro en que tus clientes se imaginen cómo el producto impactará positivamente su vida en el futuro. Al centrarte en estos aspectos, podrás vender tu sueño del producto potencial que ofrecerás en el futuro, logrando una conexión emocional de la visión futura que ofreces.

Let's use a smartphone as an example to illustrate Kotler's 5 levels of product differentiation: Core Benefit: Communication - The basic need a smartphone fulfills is keeping people connected. Basic Product: A simple phone that can make calls and send texts. Expected Product: Features like a camera, internet access, and basic apps that consumers now expect in a smartphone. Augmented Product: Additional services like a warranty, customer support, or exclusive apps that enhance the user experience and set it apart from competitors. Potential Product: Future advancements like foldable screens, advanced AI capabilities, or new sustainability features could be added to keep the product ahead in the market.

In a broader sense, differentiation also involves understanding the market, the evolving trends, and how they affect consumer behavior. In an academic context, we emphasize the importance of sustainability and ethical considerations in product development, which are increasingly becoming crucial differentiation factors.

Differentiation is an ongoing process. Regularly review and adapt your product's positioning across all five levels as market conditions change and customer expectations evolve. Keep your focus on delivering unique value at every stage of the customer journey, ensuring that your product stands out in a crowded marketplace.

Kotler's framework also prompts you to think ahead and anticipate future customer needs. By envisioning the potential product and incorporating forward-thinking features, you demonstrate leadership in the industry, staying ahead of the curve and ensuring long-term relevance and success.

To differentiate your product using Kotler's five product levels, focus on each layer: core, basic, expected, augmented, and potential. For instance, if you're selling smartphones, the core benefit is communication; the basic level could be a functional smartphone; the expected includes features like a good camera; augmented might offer an extended warranty; and potential future innovations such as advanced AI integration. Each level adds value and sets your offering apart. #ProductDifferentiation