Tuesday, December 17, 2019

5. WHY A PRODUCT MUST HAVE 3 LEVELS OF PRODUCT

Because to become a product that sells, we must complete 3 levels that consumers certainly need:

1. Core Values: e.g. a food must fulfill your hunger, and a food also must fulfill your needs of carbohydrate, vitamins, etc.
a coat or sweater must fulfill your needs to be warmed, it must give warmth to the user, if not then it cannot be a good coat/jacket/sweater, and most likely it won't sell except ther i a specific market that desires a warm clothing that is not actually give warmness but gives the opposite.

2. Actual Product: Actual product are the brand name, quality level, design, packaging, and features that is compulsary for a product to have customers that desire it as much as possible. Lets take an example from automotive industry, a vespa motorcycle, its produced in Vietnam but using a name a very famous Italian brand called Vespa under Piaggio corporation. When they sell it in Indonesia, if compared with local Honda product of the same class which we will talk about 150cc A/T Motorcycle, the price of one unit of Vespa is equal to Two units of Honda Vario, that is serious amount of money but still, it has many customer, millions of vespa are sold even though it's still below the selling amount of Honda Vario, and we even haven't talk about the value for money which Honda Vario certainly have more benefit, but Vespa, they sell prestigious, they sell beautiful design and legendary heritage, even though the quality is not far above Honda Vario, and even the fuel economy is quite far below Honda Vario, but Vespa have a lot of people admires and desires it, and teh could maintain a higher value product compared to Honda Vario, now that is amazing.

3. Augmented product: it's mostly aftersales services such as delivery, product warranty, product support etc. Let's just connect the example of motorcycles in the previous paragraph, Honda provides better Augmented product than Vespa, why ? because Honda have lots and lots of service garages compared to Vespa who have only several in the city of Bandung, and the price for each engine service is less expensive for Honda compared to Vespa, that is why Vespa can never beat the total selling for their motorcycles by Honda.

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