Core products are a company's products or services which are most directly related to their core competencies. They refer to the use, benefit or problem-solving service that the consumer is really buying when purchasing the product. They are at the first level in the model - Three Levels of a Product. These products are then integrated into a variety of end products, either by the company holding the core product or by a second company to which the core product is sold to, and the actual products are sold to users. In simple words, core products are derived by customers when they use the product.