A five layer product value model from Core Benefit to Potential Product, adapted from Philip Kotler’s work.
Why This Matters
Great products won't win if they rely solely on strong hardware or solid features. They win because they meet needs on multiple levels. Some needs are obvious. Others are emotional, social, or future-looking.
The Five Product Levels Model helps product teams see the full picture. It reveals the layers of value that shape user decisions. It also shows why basic features give you entry to the market, while advanced value shapes loyalty and long term success.
What is the 5 Product Levels Model
The Five Product Levels Model was proposed by marketing scholar Philip Kotler. It divides a product into five layers:
- Core Benefit
- Basic Product
- Expected Product
- Augmented Product
- Potential Product
Together, these layers show how customer value evolves from the basic function to future potential. This helps teams understand their competitive position and plan smart product development.
The Five Product Levels With Examples
Level 1 - Core Benefit
The core benefit is the fundamental value customers seek from the product. It is not the device they hold, but the problem they solve or the feeling they gain.
For a smartwatch, the core benefit is better health management and a more efficient lifestyle.
For an e-cigarette, the core benefit is a controlled and convenient alternative to traditional smoking, paired with a sense of relaxation or habit satisfaction.
For Notion, the core benefit is organizational clarity and a highly flexible "second brain." It isn't just about typing notes; it’s about the peace of mind that comes from having a chaotic work life structured in one place.
Understanding this layer helps product teams stay aligned with the emotional and practical reasons users buy in the first place.
