PRODUCT
SESSION1: MEANING AND IMPORTANCE OF PRODUCT
The term Product is mostly used as a need-satisfying entity. It represents solution to customers, problems. In the words of Peter Drucker, the product remains mere raw material or at the best an intermediate till it is not bought or consumed. Hence mostly they comprise of both tangible and intangible benefits. It may be anything that can be offered to a market to satisfy a want or need and include physical goods, services, experiences, events, places, properties, organization, information and ideas. In most of the cases products are made up a combination of physical elements and series.
It is observed that consumers buy products or services that they require to fulfill their needs. The products could range from tooth brush, chocolates, cars, movie tickets to life insurance at various stages of our life. The decision to make a purchase is hence dependent not only on the tangible attributes of the product but also on the psychological attributes like brand, package, warranty, image or service to name a few.According to Philip Kotler, “Product is anything that can be offered to someone to satisfy a need or a want”.
William Stanton, “Product is a complex of tangible and intangible attributes,including packaging, colour, price, prestige and services that satisfy needs and wants of people”.
It is defined as a good or service that most closely meets the requirements of a particular market and yields enough profit to justify its continued existence
COMPONENTS OF A PRODUCT
Products have their own identity or a personality. Most of the users associate meaning with products, they obtain satisfaction by using them. The various features and functions built around them-the brand name, the package and labeling, the quality associated with it, the guarantees, the price, the manufacturer’s name and prestige-all contribute to the personality or the total product offering, a marketers armory for satisfying the customer. It has been often stated that a customer never just purchases the generic product but he procures something that exceeds his expectation depending on for whom it is being bought.
The components of the product include core product, associated features, brand name, logo, package and label.
The Core Product
It is the basic element of the product. For example if we take Dove Soap, the fragrance of the soap, the moisturizing ability, the pristine white colour, the brand name,the price, the positioning as luxury soap all have gone into the marketing of product personality. The core component is the soap, the generic constituent, as in the case of any other bathing soap, the only difference being the other components are superimposed on this basic component to develop the total personality of Dove.
It is observed that the total product personality is dependent on basic constituent of the product. If the product is substandard the other elements associated like features,package, label, differentiation, positioning, branding will not be of any use. Hence focus on the core product is essential.
The Associated Features
The Product includes several associated features besides the core ingredient. In the example of Dove soap the fragrance of the soap, the moisturizing ability, the pristine white colour etc. are its associated features. The total product personality is mostly enhanced through the associated features. Further, these also aid in distinguishing the product from its competitors.
The Brand Name
A brand is defined as a name, term, symbol, design or a combination of them which is intended to identify the gods and services of one seller and to differentiate them from those of competitors. A trade mark is a brand with legal protection, thus ensuring its exclusive use by one seller. In the current age consumers do not just pick products but they pick brands. The brand image is developed through advertising and other promotional measures to remain etched in the consumers’ minds.
The Logo
It is the brand mark/symbol and an essential aspect of the product, extending its support to the brand effectively. Symbols and pictures ensure product/brand identification and recall with their importance being enhanced in rural markets where brands are mostly recognized by their picture in the logo.
The Package
It is another important component of the total product personality, particularly in packaged consumer products. The package performs three essential roles:
• Ensures protection to the product
• Provides information about the product
• Increases aesthetics and sales appeal.
Conventionally packaging was used to protect the product from damage en route and to facilitate handling at various points of distribution. Later on it also became a major tool in the promotion of the product. Currently packaging contributes to the total sales appeal of the product.
The Label
It is the part and parcel of a package. It provides written information about the product helping the buyer to understand the nature of the product, its distinctive features,its composition, its performance.
The components discussed above make a preliminary impact on the consumer. The other ‘P’ i.e. Price, Place and Promotion also play a important role in shaping the total product personality.
CHARACTERISTICS PRODUCT:
1. Product is one of the core elements of marketing mix.
2. Various people view it differently as consumers; organizations and society have different needs and expectations.
3. The product includes both good and service.
4. A marketer can realize their goals by manufacturing, selling, improving and modifying the product.
5. It includes both tangible and non-tangible features and benefits offered.
6. It is vehicle or medium to offer benefits and satisfaction to consumers.
7. The important lies in services rendered by the product and not ownership of product. People buy services and not the physical object.
8. Product includes total offers, including main qualities, features and services.
IMPORTANCE OF PRODUCT
Product therefore, is the core of all marketing activities. Without a product, marketing cannot be expected. Product is a tool in the hands of the marketers which gives life to all marketing programmes. So, the responsibility of the marketers to know its product well is pertinent. The importance of the product can be judged from the following facts:
1) Product is the focal point and all the marketing activities revolve around it. Marketing activities like selling, purchasing, advertising, distribution, sales promotion are all meaningless unless there is product. It is a basic tool by which profitability of the firm is measured.
2) It is the starting point of planning. No marketing programme will commence if product does not exist because planning for all marketing activities distribution, price, sales promotion, advertising, etc. is done on the basis of the nature, quality and the demand of the product. Product policies thus decide the other policies.
3) Product is an end. The main purpose of all marketing activities is to satisfy the customers. Thus product is an end (satisfaction of customers) and the producer, therefore, must insist on the quality of the product so that it may satisfy the customers’ needs. It has been observed that the life of low quality products in the market is limited.
Please click on below link to download CBSE Class 12 Marketing Meaning and Importance of Product Notes
