Surpassing client expectations
(Also known as the Extended Products Model and the Customer-Perceived Value Hierarchy.)
Meeting your clients’ demands and needs is obviously crucial when creating new products or services. But in order to differentiate yourself from the competition, it’s also crucial that you dramatically surpass your clients’ expectations.
This, however, can be challenging. How would one define, for instance, customer expectations? How do you stay one step ahead of your rivals? And which characteristics ought to be emphasized as part of your marketing plan?
The Five Product Levels model by Kotler and Keller is one technique that can be used for this. This post will examine this paradigm and explain how you can apply it to create new items that go above and beyond what your customers expect.
Concerning the Five Levels
The Five Product Levels approach was presented by marketing authorities Philip Kotler and Kevin Lane Keller in their textbook “Marketing Management” from 2003. The approach is based on earlier research by Kotler as well as a 1980 paper by Theodore Levitt in the Harvard Business Review.
The model identifies five approaches to improve a product’s value. The more stages you reach, the more value you offer customers, the more you’ll surpass their expectations, and the more your product will set itself apart from that of your rivals.
1. Core benefit.
2. Basic Item.
3. The expected outcome.
4. Enhanced Goods.
5. A possible product.
The model can be used to create new items and enhance existing ones. Additionally, you can use it to improve your marketing message.
Let’s take a closer look at each of the levels.
1. Core Advantage
At its most fundamental level, this is the advantage that your customers are receiving from the product.
For instance, the main advantage of purchasing a raincoat is that it will keep you dry when it rains. The main advantage of purchasing a car is that it will allow you to travel.
2. Basic Item
At the second stage, you translate the primary benefit into a real product and specify the fundamental characteristics that the product must possess.
In light of the aforementioned examples, a raincoat that keeps your head dry must be waterproof and may have a hood. For you to get inside and drive, a car needs doors, an engine, wheels, and a sturdy structure.
3. Expected Outcome
The group of qualities or traits that customers anticipate from a product when they buy it is known as the expected product. This is in addition to the second-level features of Basic Products.
For instance, you could anticipate a raincoat to be crafted from breathable material to prevent perspiration and to have a respectable cut.
Similar to new cars, you would anticipate them to be equipped with airbags, anti-lock brakes, a modern media player, and an integrated navigation system. It should also be trustworthy and come with a reasonable guarantee, right?
4. Enhancing Product
Any features that go above and beyond what customers expect are identified here. Here is where you may start to set your product apart from that of your rivals.
In the instance of the raincoat, the producers might provide an augmented product by including a free map case or by employing the most lightweight materials.
In the case of our hypothetical car, the producers might provide side airbags, top-tier tires, or a self-defrosting windscreen.
5. Prospective Good
You consider the “Potential Product” and the features and value you could provide while also considering potential future changes the product might go through.
A possible product improvement for our raincoat would be a compact bag that individuals could use to transport their folded raincoat in, making it easy to slip into a bag or briefcase, or a new design that would allow you to see more of your surroundings when wearing the hood.
A new engine design that uses less gasoline, a voice-activated navigation system, or apps for smartphones that let you open and start your car without a key are a few examples of prospective product expansions for our car.
Employing the Tool
The Five Product Levels concept can be used to create products that go above and beyond what your customers expect.
Levels 1 through 3 (Core Benefit, Basic Product, Expected Product)
The model’s first three levels outline the features your product must have to at the very least match client expectations.
When creating a new product, make sure it satisfies the fundamental needs and desires of your target market by viewing it from their perspective. If it doesn’t, you must fix these problems before moving on to levels 4 and 5. After all, you can’t exceed client expectations if you don’t even meet them.
Are there any fundamental qualities or advantages that you should emphasize in your marketing plan to reassure customers? Is a certain safety feature necessary, for instance, or do you need to let them know about something that is especially significant to them?
Level 4 (Augmented Product)
Here is where you can start to distinguish your product from the competition and truly add value to it.
When creating a new product, consider how you might go above and beyond what the buyer might expect. Could you, for instance, add new features to your product? Alternatively, is it possible to package your product with additional goods or services, such as maintenance, financing, or accessories?
If you can offer features and benefits that you are alone able to offer, you’ll have a better chance of exceeding client expectations and outperforming the competition. To do this, make use of methods like USP Analysis and Core Competency Analysis.
When creating a marketing strategy, note the features and benefits that go above and beyond what customers might expect, and emphasize these in your marketing communications.
Level 5 (Potential Product)
This is where you list potential future features and advantages for your product.
This is crucial because, when customer expectations evolve, Augmented Products (level 4) can soon turn into Expected Products (level 3). To keep one step ahead of the competition, you must innovate.
While Kano Model Analysis “helps you think of features that will please customers, Conjoint Analysis “helps you discover and prioritize the features that are most important to customers.
Major Points
The Five Product Levels were presented by Philip Kotler and Kevin Lane Keller in their textbook “Marketing Management” from 2003. The model is based on concepts proposed by Theodore Levitt and Kotler.
The model identifies five approaches to improve a product’s value. By doing this, you can surpass client expectations and set yourself apart from the competitors.
1. Core Benefit.
2. Basic Item.
3. The expected outcome.
4. Enhanced Goods.
5. A possible product.
Use the model to establish your marketing message, create new items, and enhance existing ones.
If you found this article insightful, you might also be interested in exploring these topics further. Here are five articles that could capture your attention:
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- Essential Competencies for Managing a Team – Understand the key skills and competencies required for effective team management.
- Providing for Your People – Explore strategies to support and nurture your team members’ development.
- Mentoring – Gain insights into the art of mentoring and how it can benefit both mentors and mentees.