Concept, role, functions, commodity structure in marketing. Goods in marketing are what? The quality of a product in marketing is ...

We encounter the goods and services on a daily basis, but it's unlikely that ordinary consumers would ever think about the path they take, from the idea and the design of their creation, to production, transportation, advertising and promotion. For the marketer, the role of the product in marketing is of great importance, since it is the central object of his work, what everyone needs in one form or another. All the most important aspects of the product are discussed in more detail in this article.

What is a product?

Goods in marketing are, on the one hand, a means to meet human needs, on the other hand, a product created for sale. But, contrary to popular belief, this is not at all what went off the assembly line. This is a whole process, implying several important steps and huge efforts of the marketer to promote.

Stages of product creation

The first step is the creation of a plan. The marketer analyzes the market and consumer needs and defines the functions of the product in marketing, what he could satisfy and what benefits the buyer should give.

The second step is the fulfillment of the idea. This is all about the implementation of the product in life - the purchase of materials, production, packaging, delivery, marketing methods, etc.

The third step is the use of the marketing mix. It is work with the market, competitors, flexible pricing policy, effective means of sales promotion, promotion policy (advertising, stocks, POS materials, etc.).

The main thing to remember about - no matter how effective these steps are, the product will not be successful if it does not fulfill its main function - the satisfaction of human needs, which is due to some of its most important properties.

Consumer properties of the goods

Every marketer should know that the product in marketing is not only the product itself, but first of all those benefits that the consumer receives with the purchase:

• Functionality - whether the product bears useful functions for the consumer - quality or quantity, breadth of application, advantages in storage, transportation, delivery, etc.
• Demand - whether the product meets the demand in the market, season, style or fashion.
• Reliability and durability - how long it will serve the product, what service life it has, whether it is suitable for detecting malfunctions and repairing, whether there are guarantees and after-sales service.
• Ergonomy is convenience and comfort from its use, conformity to taste, visual, power and other physiological perceptions of a person.
• Aesthetics - compliance with the standards of society, style, fashion, sociocultural significance.
• Economical - price and quality.
• Environmentally friendly - safe use for the consumer and others.

These are key features of the product in marketing, which allow the consumer to choose his choice in one direction or another. But not only benefits and benefits form demand, very much depends on its varieties.

Classification of goods

Let's analyze the principles by which the product is divided in marketing. These are several different classifications, the first of which is the length of use:

• Short-term - those that are consumed often and quickly (food, household chemicals);
• Long-term - those that are consumed for a long time and are rarely purchased (real estate, clothing, jewelry, household appliances);
• Services - household, transport, legal and others.

When creating a product, it is extremely important to understand which category it belongs to. For example, in the case of short-term goods, it is important to take into account physiological characteristics, taste or smell, but not necessarily fashion or durability. While for durable use, durability, guarantee and quality of the product in marketing are key points.

Another classification divides the goods according to demand, this is:

• Goods of daily demand - are purchased often, without hesitation and special efforts (food);
• Pre-sale goods - are also purchased quite often, but after comparison with other goods (clothes);
• Goods of exclusive demand - single samples, in the absence of which the buyer does not acquire others in the market, since they have no analogues;
• Goods of passive demand - those that may not be needed by the consumer, or he does not know about their existence, but with proper promotion, there is demand;
• Goods of special demand - for the search and purchase of which great efforts are made.

In addition to this classification, the structure of the product in marketing provides materials, components, raw materials, semi-finished products, various services, additional products and much more, which helps to create a finished product and is partly included in its cost.

And, of course, speaking of classification, we can not fail to mention the following concept.

What is a new product?

A new product in marketing is a product with completely new properties, either for a single company or for the entire market. Its classification has 6 categories:

• The products of world novelty are those that are first produced on the world market. The most illustrative example is the company Apple, which released for the first time on the market tablets iPad.
• A new product line is what is first produced on a single company scale. Quite a common situation in many industries, where the assortment is updated from time to time. For example, a toy company decided to produce clothes for children as well.
• Expansion of the product line is what updates or complements the already existing product - new flavors of chips, new packaging of yogurt, new volumes of washing powder packaging.
• Updating the product - improving the characteristics of existing goods or adapting them to certain conditions. For example, a car manufacturing plant produces a new model, with a more advanced engine and automatic transmission. Or the company, engaged in the production of skiwear, in summer makes outfits for tourists and equipment for hikes.
• Repositioning - changing the position of the product or its target audience. For example, changing the design to a more youthful one, in order to sell it to young people.
• Product cheaper - occurs due to cost reduction, modification and improvement of production and (which is not the most successful option) using cheaper materials.

This concept of the product in marketing allows us to maintain and strengthen our positions in the market, to occupy a new niche, to exploit the available capacities and technologies, to increase profits, to expand our target segment and increase brand recognition.

But not only the introduction of a new product allows the company to take a leading position in the market. There are many other important steps.

Assortment Policy

In order to take a worthy place in the market, it is important to determine the right product mix. The high quality of the product in marketing is not the only requirement. The produced and sold product must satisfy the demand and needs of customers, have a competitive price and a wide choice. Here are the basic requirements for the assortment:

• Latitude - how many groups this category of goods has (for example, the assortment of a store of utensils includes plates, frying pans, pots, sets, etc.);
• Depth - these are variations within groups (for example, in the assortment group of "pots" are included stewards, scoops, whiteners, pots for fondue, etc.)
• The saturation shows how much these variations are in quantitative terms;
• Harmony - how much the goods complement each other.

A full definition of the product in marketing can not do without a deep analysis of the ABC assortment. With its help, it is determined proportionally which product brings the greatest profit, and on the basis of these calculations form the optimal trading assortment.

Working with competitors

In addition to the right set for sale, it is important to adequately assess your actual position in the market. This is the essence of the product in marketing, it is considered in the complex - quality, breadth, competitiveness.

In order to assess whether a competitive product, you must first analyze the market for similar products and firms that produce them. Then make an assessment of their strengths and weaknesses, identify defects in the product, analyze their prices and competitors. As a result, a plan is drawn up on how to correct the shortcomings, what to offer new or how to stand out among competing firms, what cost will be optimal and at the cost of which it is possible to reduce costs.

Complex marketing

In marketing, a commodity is understood as a complex of price, sales, assortment and promotion or a complex of marketing. We told about the assortment policy above.

To establish prices, the most often used cost method (based on the costs of production and sale of goods). Often manufacturers use the price as a competitor, and vary it with the help of discounts, shares and other bonus programs. And very rarely in the case of exclusive products, the price is set by the manufacturer at its own discretion.

The marketing policy implies the search for optimal, efficient and economical sales channels, work with intermediaries, creation of trade networks, distributors and other.

And, finally, promotion includes all direct and indirect work with the consumer, from attractive packaging, to the creation of an image and image of the company, direct advertising and bonuses for buyers.

Product life cycle

A product in marketing is a constantly changing concept. Therefore, the marketer must clearly understand that even with the greatest efforts and investments in promotion, sooner or later each product has its own ups and downs. In other words, its life cycle. It consists of 5 phases:

• Product development - starting with the idea that appears in the head, ending with the creation of a business plan and strategy for promotion;
• The creation and introduction of a product - a phase that often causes losses to the creator, since the consumer does not yet know the product, and many investments in its testing in the market - production, rent, transportation, advertising, etc.;
• Product growth - in this phase, the applied efforts bear fruit, and the consumer recognizes the goods, which is accompanied by an increase in sales and profit;
• Product maturity is the saturation period when a large number of consumers are familiar with the product, and when the manufacturer has the maximum profit and practically does not spend money to maintain the position of the product and its competitiveness;
• The stage of recession is a glut of the product, consumers want something new, so the profit is reduced, and the manufacturer is looking for ways to return to the peak of sales - creating a new product, the cost of promotion, shares, etc.

Having gone through these stages, not always the goods will be able to return again to the peak of sales. This is partly the work of the marketer - to be able to revive the product on the market, where the demand for it disappeared.

How to take high positions in the market

There are a lot of marketing strategies for promotion , and the factors that affect demand are an incredible number. This is the price and quality, service, after-sales service, bonuses and discounts, good range, conformity to fashion, style and much more.

The most common method of attracting customers is price policy, while not always a sharp drop in value raises demand. For example, for essential goods, a surge in sales will, on the contrary, lead to a sharp price increase.

Another effective tool is advertising. But do not forget that it should be targeted to the target buyer (for this you need to clearly understand who your audience is), be placed in the right place and at the right time.

Discounts, promotions, special offers, bonus program are another effective tools for creating a rush demand for a product.

Often in marketing, a commodity is understood as a brand. Many consumers are willing to overpay just for the brand, because it is the guarantor of quality or demand. In this case, it is important not only to create a quality product, but also to ensure the image and recognition of the company.

By the way, about quality. This is also a very effective method of promotion, since a durable, worthy product will always find its consumer.

Much depends on the assortment, the seller, seasonality, time and place of sale, the number of offers, positive feedback and much more.

Instead of concluding

All that we buy, from food, to the services we use, is the goods. It has certain characteristics that influence our choice when buying - ergonomic, aesthetic, functional, economic and others. We buy them, based on our own preferences, the breadth of the range, fashion, benefits, savings, durability. In many respects, the demand for a product is determined by the stage that the product passes in the market - introduction, growth, maturity or recession. This is the essence of the product in marketing.

The task of the marketer is to use the key marketing tools (marketing, price, range and advertising), to promote the product on the market and to ensure it high sales and profits. If all these funds are weighed and properly applied, the product will have more chances to take high positions in the market, which means that it will last longer and become more competitive.