Meaning and Product Classification :-
Product refers to a tangible or intangible item that is offered to the market to fulfill a specific need or want. Products are at the core of any business’s offerings and play a fundamental role in marketing, as they are the primary means by which customers’ needs and desires are addressed.
Product Classification:
The Product Classification are divided into several segments.Product classification are based on several factors,They are:-
1. Consumer Products:
These are products meant for individual or household consumption. They can be further categorized into:
- Convenience Products: Everyday items that consumers buy frequently with minimal effort. Examples include snacks, toiletries, and newspapers.
- Shopping Products: Goods that consumers purchase less frequently, usually after comparing prices and quality. Examples include clothing, electronics, and furniture.
- Specialty Products: Unique, high-quality products for which consumers show strong brand loyalty. Examples include luxury cars and designer clothing.
- Unsought Products: Items that consumers do not actively seek but may buy due to urgent needs or marketing efforts. Examples include fire extinguishers or burial insurance.
2. Industrial Products:
These are products used by businesses and organizations to support their operations and production processes. They can be classified as:
- Raw Materials: Basic materials used in manufacturing, like steel or chemicals.
- Component Parts: Products that become part of the final product, such as engines for automobiles.
- Capital Goods: Long-lasting, expensive products like machinery, vehicles, and industrial equipment.
- Supplies and Business Services: Consumable goods and services needed for daily operations, like office supplies or maintenance services.
3. Augmented Products:
These include additional services or features that enhance the core product. For example, warranties, maintenance, and customer support can be part of an augmented product.
4. Branded Products:
Products that carry a brand name, logo, or trademark to distinguish them from generic or unbranded alternatives. Branding can create perceived value and trust.
5. Generic Products:
Non-branded or unbranded products that are typically cheaper than branded products. They may be identical in quality and function but lack a recognizable brand.
6. Durable and Non-Durable Products:
Durable products are those with a longer lifespan, such as appliances or electronics, while non-durable products have a shorter lifespan, like food and toiletries.
7. Digital Products:
Intangible products delivered electronically, such as software, e-books, and streaming services.
Concept of Product Mix:-
The product mix, also known as the product assortment or product portfolio, refers to the range of products and services that a company offers to its customers. It is a fundamental element of a company’s marketing strategy and is essential for meeting customer needs, achieving business objectives, and staying competitive in the market.
- Product width pertains to the variety of product lines that a company provides. Each product line typically serves a distinct market segment or addresses a specific need. For example, a company that offers smartphones, tablets, laptops, and accessories has a wide product width.
- Product depth pertains to the variety of products within a particular product line. It represents the different versions, models, or variations of a specific product. For instance, within the smartphone product line, variations in terms of features, colors, or storage capacity contribute to product depth.
- Product length is the total number of products a company offers across all its product lines. It reflects the overall diversity of a company’s product portfolio.
- Product consistency examines how closely related or similar the different product lines are. Companies may have a consistent product mix, where the product lines are related and complement each other, or an inconsistent mix where the product lines are quite different
Process of New Product Development
1. Idea Generation:
The process begins with the generation of new product ideas. Ideas can come from various sources, such as customer feedback, market research, brainstorming sessions, or internal R&D efforts.
The goal is to create a pool of potential ideas that align with the company’s goals and market needs.
2. Idea Screening:
In this stage, the generated ideas are evaluated to identify those with the most potential for development. This involves assessing factors like feasibility, market demand, competition, and alignment with the company’s strategic objectives.
Ideas that do not meet the criteria are eliminated to focus resources on the most promising concepts.
3. Concept Development and Testing:
This includes defining the product’s features, benefits, and its target market.
Concept testing involves presenting the concept to a sample of potential customers to gather feedback and gauge their interest and willingness to purchase the product.
4. Business Analysis:
This stage involves a comprehensive assessment of the proposed product’s financial viability. It includes estimating development costs, potential pricing strategies, sales forecasts, and profitability projections.
The goal is to determine whether the new product is economically feasible and aligns with the company’s financial goals.
5. Product Development:
If the concept passes the business analysis, the product development stage begins.
This involves the design of the product, the development of prototypes, and the implementation of thorough testing processes.
R&D, engineering, and design teams collaborate to bring the product to life, ensuring it meets quality and performance standards.
6. Market Testing:
Before a full-scale launch, the product is tested in a limited market or specific geographic area. This allows the company to assess market response and gather real-world data on customer acceptance, demand, and any potential issues.
7. Commercialization:
After successful market testing, the product is ready for a full-scale launch. This involves planning and executing marketing, distribution, and sales strategies.
8. Post-Launch Evaluation:
Even after the product’s launch, the new product development process continues. Companies evaluate the product’s success in the market, gather customer feedback, and make improvements as required.
This ongoing evaluation helps ensure the product remains competitive and meets evolving customer needs.
Download Free PDF Notes of Marketing Management Unit-2
You can download the free PDF Notes of Marketing Management Unit-2 by just clicking on the text that says” Download Free PDF Notes of Marketing Management Unit-2″
Also Read Marketing Management Notes of :-