In order to be effective in the market and be successful, you should first learn everything about the product. After all, he will be the most important part of your entire business puzzle. What is a product in marketing? What should you know about it? We advise!
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.
A marketing product is everything that can be offered on the market. According to the definition, products are not only tangible goods, but also services, places and even ideas. Clothing brand products are clothes, while products 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 lists: basic utility, basic product, expected, extended and potential product.
Even a perfect product is not enough to generate profit.
We will take care of its proper promotion!
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 the product to the current and future needs of potential customers. Shaping the product strategy in marketing begins at the stage of creating the product concept. From the very beginning, it is important to ensure that the product is as closely matched as possible to the expectations of the target group. Building the strategy continues with the product launch and sale. The moment when the commodity is withdrawn from the market is considered to be the official end of the strategy.
The product strategy in marketing should be consistent with the other elements of the traditional 4P marketing-mix concept, i.e. 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 trader can act according to the selected scheme of the product strategy. These are strategies of: maintaining competitiveness, a full range of a limited range, extending, supplementing or cleaning the product line.
A few words about the product range
In marketing, the product rarely functions on its own. Companies often offer customers entire groups of products that are related in some way - by the way they operate, purpose, the same market segment or a similar price range. The list of all forms and varieties of products is called an assortment. An assortment is defined according to 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.
The brand of the product
In the modern world of business, the brand of the product is of great importance. A brand is a logo, name, trademark, or a combination of all of these. The idea behind the brand is to mark the 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.
Built the right way:
- helps to identify the characteristics of the product (e.g. specific origin or intended use),
- communicates the emotional benefits resulting from the purchase of a given product,
- transmits certain values that are valuable for a given market segment,
- fits into the consumer's lifestyle,
- makes the product remembered (and this increases the chances that the consumer will choose it again).
We can divide the product brands in marketing according to the brand sponsor, i.e. manufacturer, broker and mixed brands, as well as according to the scope of the name, i.e. family, individual and combined brands.
Product life cycle in marketing
Each product in marketing has its own life cycle, i.e. the period in which it is present on the market. In the industry literature, 4 phases are mentioned:
- 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.