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The Five Product Levels model was developed byPhilip Kotlerin the 1960s. Kotler’sbook,Marketing Management (15th Edition), was voted one of the 50 best business books of alltime in the mid-1990s by the Financial Times.Before Kotler, marketing existed within a silo, the marketing department. Kotler was instrumental inmaking marketing an organization-wide activity.What is a Product?For Kotler, the definition of a product goes way beyond being a physical object or a service. Hedefines a product as anything that can meet a need or a want. This means that even a retail store ora customer service representative is considered a product.The model considers that products are a means to an end to meet the various needs of customers.The model is based on there being three ways in which customers attach value to a product:Customer Need:the lack of a basic requirement.Customer Want:a specific requirement for a product or service to meet a need.Customer Demand:a set of wants plus the desire and ability to pay to have them satisfied.Customers will choose a product based on their perceived value of it. The customer is satisfied if theproduct’s actual value meets or exceeds their expectations. If the product’s actual value falls belowtheir expectations they will be dissatisfied.Five Product Levels (Kotler)The Five Product Levels model provides a way to show the different levels of need customers havefor a product. These needs range from core needs to psychological needs. At each product level,more customer value is added.HistoryThe Five Product Levels model was developed byPhilip Kotlerin the 1960s. Kotler’sbook,Marketing Management (15th Edition), was voted one of the 50 best business books of alltime in the mid-1990s by the Financial Times.Before Kotler, marketing existed within a silo, the marketing department. Kotler was instrumental inmaking marketing an organization-wide activity.What is a Product?For Kotler, the definition of a product goes way beyond being a physical object or a service. Hedefines a product as anything that can meet a need or a want. This means that even a retail store ora customer service representative is considered a product.The model considers that products are a means to an end to meet the various needs of customers.

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Term
Spring
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Tags
Marketing, product levels model

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