The document discusses different levels of service products that provide benefits to customers. It begins by defining a service as a mix of tangible and intangible elements that aims to satisfy consumers. There are four levels: 1) Core level: The basic benefits that satisfy basic customer needs. 2) Actual level: The tangible aspects like brand name, design and quality that accompany the core service. 3) Augmented level: Intangible aspects like after-sales service and delivery that support the actual product. 4) Potential level: Additional benefits or features that can be added to attract new customers. Each level provides increased value to customers. The document uses examples like tax consultants and catering services to illustrate the different

1. 03/07/2012 1

2. Service Offer
►A service means an idea or a good
that involves a mix of tangible and
intangible elements, which aims
to satisfy the consumers.
► A Service package is a bundle of
features and benefits relevant to
specific target market.
03/07/2012 2

3. Service Product Level
Different levels at which product offers certain benefits
that satisfy the customer needs i.e.
Core level
Potential
Product (Basic benefits)
Actual level
Augmented (Design, quality, Packaging,
Product
Brand name)
Augmented level
Actual
Product (Warranty, installation,
delivery, customer service)
Potential level
(customized service
Core
Product features like hairstyling,
signatures)
03/07/2012 3

4. Level1:Core Benefits.
► The core benefit of any
Potential
Product product is to satisfy the
Augmente
basic needs of a
d Product
customer.
Actual
Product ► For example, when a
customer hires the services
of a tax consultant, he
Core
Product expects the consultant to
calculate the tax to be paid
on his income.
03/07/2012 4

5. Level 2 Actual Product:
► The tangible aspects like brand
name, features, design, quality
etc, are attached to the services,
Potential
Product
along with service, constitute the
actual service offering.
Augmente ► For example, when a company
d Product
hires the services of a reputed
Actual consultant like Mckinsey, the
Product
quality, some special features and
design, and the brand name
Core
accompany the core service of
Product consultation.
► The strategy at this level involves
organizations branding, adding
features and benefits to ensure that
their product offers a differential
advantage from their competitors.
03/07/2012 5

6. Level 3: Augmented Product:
► The intangible aspects that support
a service constitute the augmented
product along with the actual
Potential
Product
product.
► These are developed around the
Augmente
d Product
actual and core products to satisfy
the customer like: after sales
Actual service, warranty, delivery and
Product
installation so on.
► Marketers differentiates their
Core services with the help of augmented
Product product.
► For example, when a customer hires
the services of a caterer, apart from
food, the caterer takes care of
decorating the dining hall, inviting the
guests and serving them well.
03/07/2012 6

7. Level 4: Potential Product:
► The features or benefits that can
be added and which would be of
value to the customers contribute
Potential
Product
to the potential product.
► This scope for adding more
Augmente
d Product
benefits or features, provides an
opportunity for marketers to
Actual redefine their products by
Product
extending the present offerings
and thus attracting new
Core
customers.
Product ► For example, A parlour can enable
customers to choose their
personalized hairstyle with the help
of new technology by superimposing
various hairstyles on the self image of
a customer.
03/07/2012 7

8. Activity 1
► Choose a service company with
which you are familiar and show
how services marketing applies
specific to a product?
Duration 5 minutes
03/07/2012 8

9. Thank
you
03/07/2012 9