Product and product policy of the company
After studying the material of the chapter, the student must:
• the role and place of the product in the marketing mix;
• A commodity classification system;
• The procedure for developing a new product;
• Assortment and brand policy of the enterprise;
• the role of packing the goods;
be able to
• make strategic decisions in the field of product policy, developing new products, creating branded products, improving packaging;
• the main procedures and methods for developing the enterprise's product policy.
Product in the marketing system
Product refers to everything that can be offered in the market to attract attention, familiarize, use, and what can satisfy the need or need. Goods are physical objects, services, places, organizations, and even ideas.
The product is characterized by instrumental and emotional characteristics. Instrumental properties include quality, size, capacity, functional characteristics, etc. Emotional characteristics are aimed at satisfying emotional needs, which can be both internal, i.e. give a sense of security, comfort, good mood, and external - to give prestige, position, allow to be socially accepted. Emotional values directed to the outside are attributed to the expressive values of the goods, and directed inwards to the impor- tant values. Impressive and emotional values give the product a socio-psychological character of the perception of value.
Benefit from emotions
"Companies benefit from emotions - the most immediate. The company can realize a more expensive product, "- says Ivan Kotov, director of the company BCG. Say, many cars will do well to transport you from one point to another (this is functional), but BMW , you probably appreciate higher than K! A (emotions are mixed now). Of course, the company must "justify the consumer's expectations every day". "If this connection is strained, there will be no way out," Kotov emphasizes. - For example, sports festival "Sochi-2014". I saw cleaning in the store for potatoes with the logo "Sochi-2014". Will this logo help sell it? I do not think it's possible. "
Many marketers, if necessary, classify products refer to the classifications of X. Lifland and F. Kogler.
X. Liflang characterizes the goods on the basis of three sets of commodity properties. These qualitative characteristics allow us to distinguish three categories of goods.
• Goods are physical, or goods in a narrow sense. Classification occurs according to the physical properties inherent in the product (configuration, dimensions, taste, weight). On the basis of purely physical properties, it is hardly possible to distinguish competing products. Any pencil draws, the bike moves, any fur coat does not freeze.
• An expanded commodity is a collection of physical properties and added qualities that give the product its own image. Image is also supported by such tools of the marketing complex as price, distribution, incentives. In the case of uniqueness, they are called a unique commodity offer (UTS). The manufacturer must remember that the added qualities for the consumer are meaningful and desirable is a good combination with physical properties.
• The product as a whole, or aggregate goods, - is a commodity consisting of an expanded product with the addition of qualities extracted from it by consumers. The recoverable qualities are the result of the fact that consumers receive additional benefits from consumption and possession of the extended product (practical value, user friendliness, anticipated durability, position).
Professor of International Marketing F. Kotler, based on three levels of product development, distinguishes:
• The goods as a way of solving problems or as the main benefit that causes the buyer to purchase the goods. This is a product by design,
• by the name of the brand, the level of quality, the set of properties, packaging and other properties in the aggregate that determine the benefit of buying the main product - the product in real execution
• goods with reinforcement, ie. additional services and benefits for the consumer that arise on the basis of the first two levels of the product.
There is also a classification of goods according to LV Aspinvol, based on several criteria:
• possible degree of substitution of the goods;
• the service associated with the product;
• spent time searching for and purchasing goods;
• gross profit (retail price minus variable costs);
• the period during which the goods are used.
It is possible to classify products based on their characteristics.
So, according to MT Copeland's classification (based on how goods are bought), there are goods that buy quickly, and goods purchased with a choice. Sale of goods of the first group is often carried out under the brand name, knowing that a person makes a purchase as if mechanically, without hesitation. These goods are presented in the greatest possible number of points of sale, since, without finding the usual goods, the buyer will easily acquire something similar. Among the goods of this group are:
a) goods of impulsive purchase - they are bought, without planning in advance, under the influence of momentum, simply because they caught the eye. This group can get any goods, well located in the store, sold in many outlets;
b) goods for emergency cases, i.e. goods that the consumer wants to buy when there is an urgent need. At the same time, the price, and sometimes even the quality of the goods, are relatively unimportant;
c) goods purchased with a choice are goods that, when purchased, the consumer considers alternative options, will spend a specially allocated time.
Marketers usually classify goods based on their different characteristics (duration of use, materiality, scope). Each type of product needs a specific marketing strategy - mix.
For the duration of use and materiality , three groups of products are distinguished:
• material items that are classified as short-term goods. Consumed entirely in one or more cycles of consumption. Their marketing strategy should ensure their availability, a small brand margin and active advertising aimed at stimulating buyers, as well as the formation of consumer preferences;
• material items that are classified as durable goods. Withstand repeated use, usually require more personalized sales and service. These are goods that bring in higher profits and involve firm manufacturer guarantees;
• The third group consists of services. They are distinguished by immateriality, inseparability from the source, variability and short duration, the ability to adapt, they need constant quality control and trust in the supplier.
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