INTRODUCTION TO THE PRODUCT
The product is the starting point of all marketing activities. Form.“A product is any object that has an identifiable physical existence. For example: books, shoes, furniture, fruit, etc. represent products
DEFINITION OF PRODUCT
According to W.Anderson, “A product is a set of utilities consisting of various product features and accompanying services.
According to CP Stephenson, “A product is anything the buyer gets for money.” Looking at the above definitions, we can define product as “anything that can be offered to a market to attract attention, acquisition, use, or consumption that can satisfy a want or need. ”
CHARACTERISTICS OF THE PRODUCT
The characteristics of the product are listed below:
1) Tangible characteristics
A product must have the characteristics of tangibility, i.e. Its physical presence can be touched, seen and felt.
2) Intangible Attributes
A product can be intangible in its nature in the form of a service such as a repair, banking, or insurance services.
3) Associated Attributes
The product can have certain peripheral attributes to facilitate its identification and acceptance by buyers, such as e.g. B. brand, packaging, guarantee, credit facility and after-sales service, etc.
4 ) Symbolism of the product
A product is accepted by different customers from different points of view. For example, a customer’s choice of a product made in India over a foreign product symbolizes patriotism. Likewise, buying balcony tickets at a theater is symbolic status.
5) Product Life Cycle
Each product would have its own life cycle. The product life cycle has five stages, namely, introduction, growth, maturity and decline.
6) Exchange Value
All products must have exchange value and be exchangeable between the buyer and seller for mutually agreed or acceptable consideration.
7) Consumer Satisfaction
The product must be able to satisfy consumers. It can be real or psychological.
8) Meeting business needs
The basic business need is obviously to make a profit from the product sold, it can also be to meet a social need. For example, an economical small car is a hit in bourgeois society
CLASSIFICATION OF PRODUCTS
Consumer Goods Industrial Goods
Convenience Goods
Shopping Goods
Specialty Goods
Unsought Goods
Raw Materials
Capital Items
Fabricated Materials
Supplies & Services
I. Consumer Goods Consumer goods are “goods intended for use by end users or households and which can be used without commercial processing. In short, goods produced for end use are called consumer goods. Consumer goods can be divided into:
a) Convenience goods: Consumer goods are goods that consumers often buy with the least possible effort. For example cookies, newspapers. , groceries, medicines, etc.
b) Purchased goods: Purchased goods are those that the customer only acquires after careful comparison in terms of quality, price, stability, etc. For example, furniture, fans, clothing materials, etc.
c) Specialty goods are those with unique and brand-identifiable characteristics that a significant group of buyers are typically willing to make a special purchasing effort for. For example cars.
d) Unwanted goods: Unwanted goods are those that the consumer does not know about the product or does not normally think of buying. For example, life insurance, encyclopedia, etc.
II. Manufactured Goods
Manufactured goods are those that are used by buyers as inputs to the manufacture of other products. For example machine tools, trucks, etc. Manufactured goods are further divided into:
a) Raw Material: Raw materials go directly into the finished product. They must be processed or assembled into a product. Only after processing do they become consumer goods. For example agricultural products, assembly parts, etc.
b) Capital goods: Capital goods are used to manufacture finished goods. A product. They are long-lived in nature. For example buildings, devices, systems and machines.
c) Finished Material: These are manufactured goods that become part of the end products. They only reach the end user assembled with other parts. For example car parts, batteries etc.
d) Suppliers and Services: These items are not part of the final product. Its nature is ephemeral. For example charcoal, writing paper, etc. They are resources. Services include maintenance and repair service.
PRODUCT MIX
A product line is defined as the set of all product lines and items that a particular seller offers for sale to buyers. In other words, the total number of product lines that a company offers to its customers is called its product mix. The number of products within the product line is called the product item.
The product mix includes the following dimensions and is as follows:
1) Product mix breadth/Width: Product mix breadth refers to the number of different product lines that the company offers plus the number of product lines, the wider the product mix. Summarizing the different types of product lines that the company offers.
2) Product Mix Length: Refers to the number of items in the product mix.By adding up all items we get the length of a product.
3) Product line depth: Product depth refers to the variations of each product in the product line. For example, in the example below, LUX shampoo, conditioner, shampoo and conditioner shows the depth of the hair care product line.
4) Consistency of a product mix: The consistency of a product mix shows how closely related product lines are in terms of end use, distribution needs, price ranges, promotional tools, etc.
PRODUCT LINE
In the example above, it is clear that ITC’s product lines are less consistent because they perform different functions for buyers. Products under a single brand name are sold by the same company. According to William J.Stanton, a product line is defined as “a broad group of products, including for essentially similar purposes and possessing fairly similar physical characteristics, constitute a product line. For example, the HUL beauty line is divided into makeup, skincare, bath, beauty, fragrance, and outdoor protection products.
The product line decision may include:
1) Expanding or expanding the product line
A company may expand its current product by increasing the number of items or varieties within the product line. For example, Colgate has added “Colgate Salt” to its toothpaste list. The product line expansion includes the following:
a. Stretch Up or Trade Up: If the new strain is introduced into the product line is highly-priced and designed to meet the needs of a higher market group, it will be stretched or traded. For example, Cadbury Fruits and Nuts is launched to satisfy discerning consumers.
B. Stretching Down or Trading Down – New variety added to the existing product line is low priced and intended for a lower market segment, stretching or trading down. For example, Hindustan Unilever Ltd. its detergent line. Rueda to meet the needs of the lowest income group.
C. Two-Way Stretch: When products are designed by a company to meet the needs of both higher and lower segments, it is two-way. Renewal.
2) Product line contraction price
Refers to the removal of a product from a larger company’s product line because it is no longer profitable. In other words, it is a process of avoiding or stopping the production of a specific product. For example, Hindustan Unilever’s “Le Sancy” toilet soap was discontinued a long time ago because buyers did not accept it.
3) Modernization of the product line
Consumers’ tastes and preferences are constantly changing.If the length of the product line is kept constant when the product is slightly modified to meet the needs of consumers, it is called “product line modernization”. For example, cell phone manufacturers continue to add features to improve the product.
NEW PRODUCT DEVELOPMENT (NPD)
Product Planning
‘Product Planning’ is the process of determining in advance that line of products which can secure maximum net returns from the markets targeted. Thus, product planning is a “process of constantly reviewing and revising product portfolio of a firm with an objective of security a balanced sales growth, cash flow
and risk.”
In other words, product planning is a process of deciding in advance by the firm about what type of products it should develop and sell in the market so that the product serves as an instrument to achieve the marketing objective. It also monitors the product behaviors and decides whether it should continue in the product line
or any modification is required as to suit the changing consumer needs.
Product Planning “Product Planning” is the process of a pre-determined product line that can ensure maximum net profitability for the target markets. As such, product planning is a “process of continually reviewing and revising a company’s product portfolio with the aim of ensuring balanced growth in revenue, cash flow and risk”.
In other words, product planning is a process of the company’s prior decision on what kind of products to develop and sell in the market so that the product serves as a tool to achieve the marketing goal. product behavior and decide whether to continue the product line or whether changes are needed to accommodate changing consumer needs.
Every entrepreneur knows that productivity is one of the key factors in successful product development. Therefore, the development of new products is an essential part of product policy and product management.
Stages of New Product Development
1) Generation of New Product Ideas
A company has to generate many ideas to find one worth pursuing. The main sources for new product ideas are internal sources, customers, competitors, dealers and suppliers. .
• Almost 55% of all new product ideas come from internal sources – that is, according to one study, from employees.
• Almost 28% of all new product ideas come from observing and listening to customers.
• About 30% of all new product ideas come from analysis by competing products
The Company may view advertisements from competitors, press releases, and articles in the press about their activities.
2) Idea evaluation
The marketer must evaluate all ideas and inventions. and winning ideas are collected for further study and investigation. The selection must avoid two mistakes:
a) Rejecting an idea that could become a very successful product.
b) Accept an idea that later fails.
3) Development and proof of concept
The tests help the company to select the best among the alternative product concepts. Consumers are asked to provide feedback on the precise written description of the product concept, ie expected features and benefits.
• Standard tests: Here the tests are carried out in a small number of representative cities.
• Controlled testing: Tests are conducted in some stores that have agreed to sell new products for a fee.
• Stimulated Testing – Testing is performed in the retail environment by providing consumers with a sample.
4) Business Analysis
Once management has decided on the marketing strategy, they can evaluate the attractiveness of the business proposal. Business analysis involves reviewing projected sales, costs, and profits to see if they meet a company’s goals. If this is the case, the product can move on to the product development phase.
5) Product Development Program
This phase includes 3 types when an idea on paper is properly transformed into a physical product. Includes: Prototype development that provides a visual image of the product. Consumer testing of the model or prototype. Brand, packaging, and labeling. Consumer tests of model products form the basis for the final selection of the most promising model for mass production and distribution.
6) Test Marketing In this phase, the product and marketing program are introduced in more realistic market scenarios. Test marketing gives the marketer the opportunity to adjust the marketing mix before investing in a product launch. The cost of test marketing can be enormous, allowing competitors to launch a “Metoo” product or even sabotage testing, giving the seller biased results.
7) Commercialization In this phase, new product development is widespread, consumers buy the products, and technical support constantly monitors the progress. Filling the manifolds with the product is also an essential part of this process. Updating the ads at this stage keeps the product name firmly in mind for shoppers who want to buy.
PRODUCT LIFE CYCLE (PLC)
The PLC is a phase of five cycles that helps the marketer create a prior plan before launching a new product. The PLC offers a market characterized by more sales and a bad market characterized by low sales. In short, it’s about increasing sales volume and revenue.
Once the product is marketed, it competes with competitors for sales and profits. The product has a long service life, this is called SPS. In other words, PLC is a process where a product is introduced to a market, gains popularity, and then is phased out. of the market
• Marketing strategy refers to the process of unifying, understanding and integrating marketing plans to maintain the company’s marketing position and image and attempt to maintain profitability at desired levels.
The need for immediate benefit is not pressured.
The marketing strategies are as follows:
• The brand of the product and the level of quality are established.
• Protection of intellectual property such as trademarks, copyrights and patents etc.
• Prices can quickly undercut market shares.
• Distribution is selective until consumers accept the product.
• The funding is aimed at innovators and early adopters. Product awareness and educating potential consumers about the product.
2) Growth phase
2) Growth phase In this phase, the company tries to generate brand preferences and increase market share. Marketing strategies include:
• Product quality is maintained and additional features and support services may be added. with little competition.
• Distribution channels are added as demand increases and customers embrace the product.
• The promotion is aimed at a wider audience.
3) Maturity Stage
Products that survive the previous stages tend to spend more time in this stage. The main goal at this point is to defend the market share that maximizes profit.
Marketing strategies include:
• Product features can be enhanced to differentiate from the competition.
• Prices may be lower due to new competitors.
• Sales are becoming more intensive.
• Advertising emphasizes product differentiation.
4) Decline At this point there is a downturn in the market. Marketing strategies include:
• Maintaining the product, possibly rejuvenating it by adding new features and finding new uses.
• Harvest the product, lower costs and possibly continue to offer it to a loyal niche segment.
• Discontinue the product by liquidating any remaining inventory or selling it to another company willing to continue the product.
CAUSES OF NEW PRODUCT FAILURE
It is a common observation that many products entering the market may not meet sales and profit targets.
The general causes of errors are listed below.
1) Lack of Product Uniqueness
Any product that fails to meet a unique consumer need does not displace the more established brands available. Customers need to understand the benefits of the new product. When strong communication strategies fail to support the launch of a new product, failure usually follows.
2) Poor planning
Companies need to have a game plan that guides them through all phases and aspects of the product life. The plan is to take care of consumers. Products; Lifestyles change as populations, ages and preferences change, likewise the needs of industrial buyers are affected by changing business opportunities, scarcity of energy and materials, technological advances, and so on. Introduce the product at a time when consumer demand is highest.
While it is not always desirable to be first to market, undue delay or timing may mean that demand for the product demonstrated during consumer testing may be gone by the time of launch. Time to market has its strategic importance. on product success.
4) Misdirected enthusiasm
Time and again it happens that the strengths of the competition are underestimated or one’s own abilities are overestimated, which are soon wiped out by the actual performance of the product. This can happen when executives want to market a certain product because: it is related to their personal ambitions in the company. Therefore, planners need only rely on authentic and unbiased information to read the uncertain future.
5) Product defects
Technical product defects are often the most common reason for the failure of new products. Engineers and product technocrats are able to deliver the best laboratory products through over-engineering. That’s good when it comes to technical superiority over the competition.
6) High production costs
7) Production problem If the marketer cannot produce enough quality to meet the market demand, the competitors could easily take advantage of it.
Erzsebet Frey (Eli Frey) is an ecologist and online entrepreneur with a Master of Science in Ecology from the University of Belgrade. Originally from Serbia, she has lived in Sri Lanka since 2017. Eli has worked internationally in countries like Oman, Brazil, Germany, and Sri Lanka. In 2018, she expanded into SEO and blogging, completing courses from UC Davis and Edinburgh. Besides Litepreneur, Eli has founded multiple websites focused on biology, ecology, environmental science, sustainable and simple living, and outdoor activities. She enjoys creating nature and simple living videos on YouTube and participates in speleology, diving, and hiking.