Levels of Product and Services:

1.Core Product

2.Actual Product

3.Augmented Product
Core Product
- mainly focused on the benefit that the product brings to the
customer
- generally intangible

Examples:

Convenience Productivity
Actual Product
- generally a tangible and physical object
- includes characteristics such as quality, branding, color,
packaging and style

Examples:

Style Branding
Augmented Product
- by-products of core and actual products
- can be complete products within themselves

Examples:

Warranty Case
 Stages of Product
Development Process
1. Idea Generation
Research the market
Feedback on current products strengths and weaknesses
Suggestions from employees, partners and consumers
Competitors successes and failures
2. Idea Screening
Consider ideas objectively
Market potential
Reject unsuitable ideas
3. Business Analysis
Production costs
Market demand
Profitability
Competition
4. Product Development
Prototyping
Consumer testing
Rinse-and-repeat based on feedback
5. Test Marketing
Real market situation
Offer to limited group of consumers
Can be skipped
6. Commercialization
Pricing
Marketing strategy
Promotion and advertisements
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