Product in marketing - a handful of valuable information

In order to market effectively and be successful, you should first learn all you can about your product. After all, it is the one that will form the most essential part of your entire business puzzle. What is product in marketing? What should you know about it? We give you a hint!

Product in marketing - the most important piece of the puzzle 

The product is the first and most important element of a traditional one marketing concept. All decisions that an entrepreneur must make at the beginning of his adventure with business relate to the product. But what is the product basically? In theory, everyone knows it, and in practice, no one can explain it. 

Product in marketing is anything that can be offered on the market. According to the definition, products are not only material goods, but also services, places and even ideas. The products of a clothing brand are clothes, while the product of a advertising agency we call the advertising services provided, i.e. activities related to the dissemination of information about the existence of the company and the goods it offers. The product is intended for sale. Its idea is to meet the needs of specific consumers. The customer can buy it, consume it or use it to satisfy his own desires. 

In each product, we can distinguish several levels that shape its structure. According to the concept proposed by T. Levitt in the 1980s, these are:

• core (essence) of the product - the physical form of the product, its features and properties, satisfying the main need for which the product is purchased, e.g. the basic benefit of buying a mobile phone is the ability to quickly contact any person at any time,
• real product - everything that is necessary for the proper functioning of the product and affects its perception by the customer; the actual product has features that the consumer expects from a given category, e.g. in the case of a smartphone it will be a camera, music player, communicator,
• extended product - additional offer for the customer, e.g. virtual eSIM card, 5G technology, extended warranty period.

P. Kotler, on the other hand, mentions: primary benefit, basic product, expected, extended and potential.

What is a product in marketing?

The product in marketing terms is not just a physical object offered on the market, but also a service, idea or experience that satisfies a specific consumer need. It is crucial to understand that the value offered to the customer goes beyond the material qualities of the commodity. Marketing product also includes aspects such as brand, packaging, quality of service or guarantee, which together create an overall experience for the customer. Therefore, in product marketing strategy it is important to take into account all the elements that influence the consumer's perceived value.

Product strategy in a nutshell

In today's competitive market, it's not enough to create a product to generate profits. Proper promotion counts today. Adopted is key product marketing strategy, i.e. a set of activities aimed at adapting a product to the current and future needs of potential customers. Shaping the strategy product in marketing begins at the merchandise concept stage. From the very beginning, care must be taken to ensure that the product is as closely aligned to the expectations of the target group as possible. Strategy building continues during the product launch and sales. The official end of the strategy is considered to be when the commodity is withdrawn from the market. 

Strategy product in marketing should be consistent with the other elements of the traditional 4P marketing-mix concept, namely price, promotion and distribution.

The product strategy should therefore include:

• the physical characteristics of the product, its quality, value and the promise it carries,
• warranty coverage, packaging and after-sales services,
• the structure of the assortment, including possible types and varieties of the product,
• product life cycle,
• product development strategy, i.e. adapting it to the changing needs resulting from changes in lifestyle, technological development, etc.

The product strategy also includes such elements as advertising, brand and trademark, service.

The entrepreneur may follow the scheme of his choice product strategy. These are the strategies of: maintaining competitiveness, full range of a limited assortment, expanding, supplementing or purging product lines.

A few words about the product range

Product in marketing rarely stand alone. Companies often offer customers whole groups of products that are related to each other in some way - by mode of operation, purpose, same market segment or similar price range. The compilation of all product forms and varieties is called a range. An assortment is defined by its length, width, consistency and depth. 

Length is the total number of products offered by the enterprise. The more there are, the longer the assortment is. The width determines the number of production lines, where the line is the products related to each other according to price, functions or target group. A wide assortment meets various needs, and a narrow one - only a few specific ones. Consistency speaks of the similarity of the products offered. Whereas the depth indicates the variety of products in a particular line, e.g. different types of hair shampoos. The deep assortment meets various tastes within one need.

The market in which the company operates has a huge impact on the shaping of the product range in marketing. A frequent tactic is to offer a narrow range in order to specialize in the production of specific selections and, consequently, to gain an advantage over the competition. 

How do customers perceive the value of the product?

Perception of value product in marketing by customers depends on a number of factors, both rational and emotional. Customers judge marketing product based on its functionality, quality, price and the benefits they can derive from it. However, the intangible aspects, such as brand prestige or the emotions associated with use, are equally important. W product marketing strategy The key, therefore, is to build positive associations and provide unique values that will distinguish the the product in marketing terms against the competition. To this end, it is worth conducting market research and analysing consumer needs, which is a key element of the activities carried out by the marketing agency. Understanding these mechanisms allows for more effective positioning and communication of the value offered by the marketing product.

How does packaging influence a product's marketing strategy?

Packaging plays a key role in the perception of the product in marketingbeing the first element with which the consumer comes into contact. Attractive and functional packaging can attract attention, build trust and communicate brand values. W product marketing strategy Packaging has not only a protective function, but also a promotional one, influencing customers' purchasing decisions. Well-designed packaging can distinguish marketing product on the shelf, highlighting its unique characteristics and competitive advantages. Therefore, investment in thoughtful packaging is an integral part of effective product marketing strategy.

The brand of the product 

In today's business world, the importance of product brand. A brand is called a logo, a name, a trademark or a combination of all these elements. The idea of branding is to mark a product, give it an individual character and thus distinguish it from competing products. 

Today, building a strong brand is an inseparable element of running a conscious, successful business. Brand is one of the most important factors influencing consumers' purchasing decisions.

Brands product in marketing We can divide by brand sponsor, i.e. producer, intermediary and mixed brands, and by name scope, i.e. family, individual and combination brands.

Product life cycle in marketing

Everyone product in marketing has its life cycle, i.e. the period during which it is present in the market. The industry literature lists four phases:

• launching the product on the market,
• increase in sales,
• saturation / maturity,
• decline (decline) in sales.

In the first phase, the product appears on the market - it is not known yet, therefore the company has to invest in its promotion. Demand is growing slowly, revenues are low and promotion costs are high. The key to the first step is choosing the right pricing strategy from: fast "cream pick up", slow "cream pick up", fast penetration, slow penetration. 

In the second phase, sales usually increase rapidly. Crafting and promotion costs go down. Thanks to this, the profit increases. At this stage, the company should focus its activities on expanding distribution channels. Moreover, it should strive to strengthen its market position. 

At the maturity stage, the sale of the product reaches its highest level. At the same time, its dynamics is declining. The market is saturated with the product, substitutes appear. The company's task is to introduce appropriate marketing activities that will allow it to keep the product on the market.

The fourth phase is a drop in sales and diminishing profits. At this stage, the key is to identify the weaknesses of the product, analyze the activities so far and take appropriate steps. The company can: leave the product on the market, modify the strategy, or withdraw the product from the market.