Commodity policy in marketing

Commodity policy is used in marketing to maximize the satisfaction of all the customer's wishes and, as a consequence, to increase profits. That is, as the primary factors, it is precisely the desire and ability of the consumer group to purchase a particular product, rather than the capacity of production facilities.

Commodity policy in marketing is aimed at selling exactly the products that customers need, rather than forcing them to buy those goods or services that are profitable for manufacturing enterprises. In this case, it is not enough just to start manufacturing in accordance with the wishes of consumers, you need to make a quality product. After all, the main characteristic of the product is quality, it can be conditionally divided into real and perceived.

The first is that which the finished products have in fact, the managers and technologists of the enterprise have an idea about it, since they are engaged in its direct development. Under perceived quality is meant the client's impression of using a certain product. From the point of view of commodity policy, it is the latter that is important, because the level of sales depends on it. If the customer does not like the purchase, then he will not listen to the opinions of the technologists and will never again pay attention to this firm.

Another important feature in marketing activities is the competitiveness of a particular product on the market. And the commodity policy in this case implies the ability to compete with others on consumer properties. A common mistake in promoting a product is that experts view it as an object, but it should be understood how much it satisfies the client's needs. The consumer, in fact, does not care at all what the product is, for him the main thing is what benefit he will bring to him and how much he will be satisfied.

If the company occupies its niche in the market, but there is no increase in the level of profitability, then one of the three following types of commodity policy should be chosen. The horizontal involves the introduction of new products into the production activity, which is not too different from the already existing, and therefore does not require additional costs for implementation needs. It helps the company to attract the client's attention, to interest him. For example, the firm is engaged in strict audit of organizations, and now provides consulting services to highly qualified specialists in the field of accounting.

As a radical measure, a conglomerate commodity policy is used, which is based on the introduction of new products in production that are fundamentally different from the specifics of the firm. This method requires a serious approach, since it is necessary to plan all costs in a qualitative way, it will be necessary to develop new sales markets. Nevertheless, this will attract a larger share of the consumer group. Concentric product policy takes an intermediate position and is based on the search for a product similar to the technological characteristics that would interest the client, but did not require the development of other market sectors.

Properly chosen product policy allows the company not only to gain a foothold in the market, but also to take a leading position. It is very important to create a logo or brand recognition, because if a company is identified by customers, it means that it has won their trust. Of course, this is a great merit of the clear work of the advertising campaign, which also contributes to the multiplication of the number of clients. But in order to be consistently successful, one should stick to the tactics of continuous updating of the product range.