22.04.2023
Product definition in marketing. The main components of the product in marketing
The Great Soviet Encyclopedia defines a commodity as "a product of labor produced for sale." This definition remains undeniably true in marketing as well. However, all marketing guidelines emphasize not so much the role of the product in its exchange for money as the ability to use it, consume it.
F. Kotler offers a definition from the standpoint of a marketing approach: a product is everything that can satisfy a certain need and is offered to the market in order to attract attention, purchase, use or consumption. A product, like any product, has certain characteristics:
- a clear focus on a pre-identified target group of consumers. The manufacturer must design the product, based on the needs of not the "average" buyer, but a certain homogeneous group. An exception may be companies implementing a mass marketing strategy;
- the product must be brought to the level of commercialization, which means its full development in serial production, the successful completion of all necessary tests, obtaining the relevant certificates and other regulatory and technical documents, and creating a service network;
- the product must have consumer value, which is determined both by the product itself and by related services.
At the same time, a product is not only a combination of its characteristics. A product is, first of all, a benefit that a consumer acquires, becoming its owner. The multilevel model shown in Fig. 8.1.
This model proposes to consider the product at three levels, the content of which can be illustrated, for example, using a laptop as an example.
In this case, the product by design is a quality work with data in any place. In fact, the consumer does not buy a computer - he pays money for the opportunity to fully work with information outside the office or at home, to save time. Identification of a “product by design” allows the company, firstly, to take a broader look at competitors (it becomes clear that a laptop competitor is not only another model of the same computer, but also smartphones, Internet cafe services, computer clubs), and secondly , choose the most effective arguments that can be used in advertising this product.
A product in real performance is, in fact, a laptop of a certain manufacturer, which has a certain set of functions and characteristics.
A matched item is a laptop plus a free shipping and set-up offer, an additional service, software products for a limited period of time, and so on.
Using this model, we can put forward, for example, two proposals concerning the trade in this case with laptops. First, consider the possibility of using in advertising (or in the process of presenting goods on the trading floor) not only the quality of a particular model or brand of computer, but also the benefits for the buyer (for example: “the presence of a built-in satellite communication device will allow you to constantly maintain communication with the server or other computers, wherever you are). Secondly, this model encourages you to think about what additional products and services you can offer your customers (for example, installing and configuring the necessary software products upon purchase). In order not to make a mistake with the choice of "reinforcement" to the product, it is necessary to find out from consumers what services and / or product improvements are most in demand by them. The easiest way to do this is with a customer survey.
When choosing a marketing strategy for individual products, the marketer has to develop a number of product classifications based on the characteristics inherent in these products (Fig. 8.2).
According to the degree of their inherent durability or material tangibility, goods can be divided into the following three groups:
Durable goods are tangible items that usually withstand repeated use. Examples of such goods are cars, refrigerators, machine tools, clothing. Non-durable goods are tangible items that are completely consumed in one or more cycles of use. Examples of such goods are bread, milk, soap, salt. Service - objects of sale in the form of actions, benefits or satisfaction. Examples of such products are a haircut at a barbershop or repair work.
Depending on the characteristics of the consumer, consumer goods and industrial goods are distinguished, which, in turn, are also divided into groups.
Classification of consumer goods
Consumers buy a huge variety of products. One convenient way to classify all these products is to break them down into groups based on consumer buying habits. On this basis, it is possible to distinguish everyday goods, pre-selection goods, special demand goods and passive demand goods.
Convenience goods are goods that the consumer usually buys often, without thought and with minimal effort to compare them with each other (for example, tobacco products, soap and newspapers). Consumer goods can be further subdivided into fixed demand goods, impulse goods and emergency goods.
People buy the main goods of constant demand regularly (for example, bread, milk, toothpaste, etc.).
Impulse buying goods are purchased without any prior planning and research. Usually such goods are sold in many places, and therefore consumers almost never specifically look for them (chocolate bars, magazines, etc. are laid out next to the checkout node, because otherwise the buyer might not even think about buying them).
Emergency goods are bought when there is an urgent need for them, for example, umbrellas during a downpour, boots and shovels after the first snow drifts. Manufacturers of emergency supplies organize their distribution through many outlets so that they do not miss the opportunity to sell when the consumer suddenly needs these products.
Pre-selection goods - goods that the consumer, in the process of choosing and buying, as a rule, compares with each other in terms of suitability, quality, price and appearance. Examples of such products include furniture, clothing, used cars and basic electrical appliances.
When selling pre-selection goods, it is necessary to have a wide range of products to satisfy a wide variety of individual tastes, and to keep a staff of well-trained salespeople who can provide the consumer with the necessary information and advice.
Special demand goods - goods with unique characteristics and / or individual branded goods, for the acquisition of which a significant part of buyers is ready to spend extra effort. Examples of such products are specific brands and types of fashion products (cars, stereo equipment, photographic equipment). For example, a Mercedes car is a specialty item because buyers are willing to travel long distances to purchase it. Clothes from famous couturiers are also special goods, and buyers are willing to pay big money to own one.
Passive goods - goods that the consumer does not know or knows, but usually does not think about buying them. Novelties such as smoke detectors and food processing kitchen machines remain in the category of passive goods until advertising ensures that the consumer is aware of their existence. Life insurance, tombstones, and encyclopedias are classic examples of well-known and yet undemanded goods.
Classification of industrial goods
Industrial goods can be classified based on the extent to which they participate in the production process and on their relative value. Three groups of these goods can be distinguished: materials and parts, capital goods and auxiliary materials and services.
Materials and parts are goods that are fully used in the manufacturer's product. They can be divided into two groups: raw materials and semi-finished products and parts.
Raw materials include agricultural products (wheat, cotton, fruit, etc.) and natural products (timber, crude oil, iron ore, etc.).
Semi-finished products and parts are either material components (iron, yarn, cement, wire, etc.) or components (small motors, tires, castings, etc.). Part of the material components and components are sold directly to their industrial customers, and purchase orders are often placed a year or more in advance.
Capital property - goods that are partially present in the finished product. It can be divided into two groups: fixed structures and auxiliary equipment.
Stationary structures - buildings (factories, office buildings, etc.) and stationary equipment (generators, machine tools, computers, lifts, etc.). Stationary structures belong to the category of basic purchases, carried out, as a rule, directly from the manufacturer.
Ancillary equipment is movable plant equipment (hand tools, forklifts, etc.) and office equipment (typewriters, desks, etc.). Some manufacturers of auxiliary equipment sell directly to consumers, but more often they still work through intermediaries. When choosing a supplier, the main considerations are the quality, properties and price of the product, as well as the availability of a service system.
Auxiliary materials and services are objects that are not present at all in the finished product. Auxiliary materials are of two types: working materials (lubricating oils, coal, writing paper, pencils, etc.) and materials for maintenance and repair (paints, nails, brushes, etc.). Ancillary materials are to the industrial goods market what FMCG is to the consumer market, as they are usually bought with minimal effort by repurchasing unchanged. They are usually traded through intermediaries. The main considerations in purchasing are the price of goods and service.
Business services are classified into maintenance and repair services (window cleaning, typewriter repairs, etc.) and advisory services (legal advice, management advice, advertising, etc.). Maintenance and repair services are usually supplied on a contract basis. Business advisory services are typically present in new procurement situations.
Marketing: Lecture Notes Loginova Elena Yurievna
2. The concept of goods, classification of goods
A product is understood as everything that can satisfy a need or need and is supposed to be marketed for the purpose of sale.
Product are physical objects, services, persons, places, organizations, ideas, labor, or anything that is meant to be exchanged. However, before being included in the exchange process, he must arouse the interest of a potential buyer, i.e., have the ability to satisfy specific needs.
The Soviet era showed that not every product of labor of production and economic activity is able to satisfy the corresponding needs, requirements, tastes, preferences or expectations of consumers. Such products of labor, from the point of view of marketing, are not goods.
In marketing, a product is a set of properties that are significant for the consumer (price-quality ratio; required dimensions; functional, aesthetic, social characteristics; significance; prestige; packaging, and much more) that can satisfy his need, and therefore he is ready to purchase it at a reasonable price. a certain price and in the right quantity. There are several ways to classify goods:
1. Export- the product meets the requirements of that market segment of the country (group of countries) where it is planned to be sold:
1) market novelty (pioneer products) - these are products that are able to meet new customer needs or satisfy a known need at a qualitatively new level;
2) mass (actual) - a well-known product to the market.
2. By appointment: the list is not built correctly. Next should be numbering with a number in brackets, then with a letter in brackets.
a) goods for individual (personal, wide) consumption - the purchase by the final consumer of goods for personal use.
In turn, they are divided into:
1) non-durable goods: purchased frequently and consumed at one or more times (food, household chemicals, cosmetics, etc.);
2) durable (durable) goods: purchased rarely and for a long time (car, household appliances, clothes, etc.);
3) services: some actions that bring benefits or useful results to a person (household, banking, insurance, transport, financial, consulting, etc.);
4) goods of an exclusive assortment: these are goods, the appearance of which the consumer waits on the market, and if he does not wait, the other does not receive;
5) consumer goods: such goods are bought often, without hesitation and with minimal effort to compare them;
6) pre-demand goods: before purchasing a product, the consumer compares it with existing analogues according to various indicators;
7) goods of special demand: goods of general demand with the presence of certain characteristics, for the acquisition of which significant efforts are spent;
8) goods of passive demand: goods that the consumer either does not know about, or knows, but does not think about buying them. Such goods require certain marketing efforts for their sale: sales promotion, advertising, personal selling, etc.;
9) goods for industrial purposes (for intermediate use) - these are goods that are purchased mainly by organizations for further processing or use:
10) materials and components: raw materials, semi-finished products, parts, blanks, i.e., are fully used in the production process;
11) capital property: equipment, structures, i.e. those goods that are partially present in the final product;
12) auxiliary goods and services: business services, auxiliary materials, i.e. those goods that are not present (even partially) in the final product.
3. Services:
1) household: food, housing, service, rest;
2) business: technical, intellectual, financial;
3) social: education, health care, security, development (museums, theaters, clubs, excursions);
4) industrial purposes: operation, repair, consultation.
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The commercial characteristics of a product are a set of benefits or useful, from the point of view of consumers, properties that can be changed to control demand. The commercial characteristics of a product include its functionality that allows the consumer to solve certain problems, as well as intangible properties that somehow affect the process of making a purchase decision and the intention to remain committed to the products of this company.
Of course, the product also has a number of non-commercial characteristics. For example, a Mercedes car consists of 1800 kg of metal, plastics and other materials, but they do not buy it in the hope of these kilograms. Non-commercial characteristics are those objectively existing properties that are necessary to create a benefit, usually in combination with several other characteristics. The comfort of the car (benefit) is the result of many characteristics: the type of suspension, the spaciousness of the cabin, the arrangement of seats. The consumer is not very interested in such characteristics, except in cases where they contribute to the improvement of operation. The liquid crystal screen of portable microcomputers is a technical feature that provides the consumer with comfortable reading; the presence of fluoride in toothpastes provides reliable protection against caries.
The set of commercial characteristics of a product largely depends on which class the product belongs to. Therefore, it is necessary to consider what options for classifying goods can be used to systematize a very diverse set of goods.
Separate commercial characteristics of the goods can be considered from different positions. To assess the ability of a product to satisfy a specific need or set of needs, it is important to represent the overall composition of the characteristics of the product, or, in other words, the model of the product.
The product model is the overall composition of the commercial characteristics of the product. Product models provide the basis for the development of new product options, as they determine its main benefits for the consumer through some combination of commercial characteristics. Satisfying the same basic need, a product can have both a different combination of characteristics and different options for their implementation. This approach allows you to adapt the product to the needs of different consumer groups, creating different commodity units.
In order to divide the entire mass of goods into separate groups, classification signs are used. The classification feature allows you to determine how the selected groups will differ from each other.
As a classification feature, the purpose of the use of the goods can be used. In accordance with the purpose of use, goods for industrial purposes and consumer goods are distinguished.
Industrial goods are products that are used to create other goods, that is, consumed in the production process.
Consumer goods are products that are purchased by households for personal consumption.
As an example, we can consider a well-known product - sugar. Sugar is used for both industrial and personal consumption. Sugar offered as an industrial commodity is different from a consumer commodity. Organizations-consumers, as a rule, pay attention to such characteristics as compliance with standards, modern organization of shipment or delivery of consignments of goods, the possibility of making a profit. Households may be interested in a low price, be able to purchase small quantities of goods, would like to buy goods in convenient packaging at a point of sale as close to home as possible. Consider the classification of goods for consumers. It is presented in the form of the following table.
Table - Classification of consumer goods
|
Classification sign |
Allocated classification groups |
General characteristics of consumer behavior in relation to a group of goods |
|
|
Consumption patterns |
Non-durable goods |
Completely consumed in one or more cycles of use |
Detergents, products |
|
Durable goods |
Usually withstand repeated use |
Household appliances, clothing |
|
|
Degree of materiality |
physical goods |
Goods having a material embodiment |
Furniture, videos |
|
Actions, benefits or satisfaction that the consumer receives without material possession of the product |
Repair work, haircut |
||
|
The nature of consumer behavior when buying |
Consumer goods include subgroups:
|
Bought often, without hesitation and with minimal Efforts to compare them |
Tobacco products, newspapers |
|
Bought regularly |
Hygiene products, products |
||
|
Acquired without prior planning and search, under the influence of a momentary desire |
Chewing gum, jewelry, magazines |
||
|
Bought when there is an urgent need for them. |
Umbrellas, medicines |
||
|
Preselection Products |
Compared with each other in the selection process in terms of suitability, quality, price and appearance, purchases are planned in advance |
Furniture, used cars, household appliances |
|
|
Specialty Goods |
They have unique characteristics, for the sake of their acquisition a significant part of buyers is ready to spend additional efforts and funds |
Fashion goods, jewelry, luxury goods |
|
|
Goods of passive demand |
The consumer usually does not think about their purchase due to little acquaintance or frivolity. |
Insurance, encyclopedias |
|
|
Degrees of compatibility during consumption (complementarity) |
Interchangeable goods (substitutes) |
Considered by consumers as similar products that are alternatives to meet a specific need |
Butter and butter substitutes, wine and beer |
|
Complementary (complementary) products |
Their joint presence is a necessary condition for the consumption process. |
car and petrol |
Marketing specialists have developed several approaches to the presentation of commercial characteristics, among which the multilevel product models of F. Kotler and V. Blagoev should be mentioned. Both models are united by the presentation of a product as a set of benefits or goods acquired to meet needs and requirements. But the points of view on what kind of goods are important for the consumer in the product differ among different authors.
F. Kotler's multi-level product model. In his product model, F. Kotler highlights the main benefit offered by the product to meet the basic need, and the set of commercial characteristics grouped at different levels that are important for adapting the product to the consumer's secondary needs. The main benefit corresponds to the first level of the product and is product by design. At this level, the task is to identify the hidden needs of the consumer, which must be satisfied by the product.
Second level - real product- defines the following set of useful, from the point of view of consumers, characteristics: quality level, functional properties, external design and packaging, trademark.
The third level is called backed goods and includes after-sales service, availability of guarantees, delivery and other additional services that contribute to the convenience of using the product, preserving its consumer properties.
Multilevel product model by V. Blaglev. Veselin Blagoev's product model is based on Philip Kotler's approach, but involves grouping characteristics into four levels. First level - product core- determines the main purpose of the product, the "nuclear service" that the product provides to the consumer. Second level - physical characteristics of the goods - quality, special characteristics, brand, style, packaging. The third level complements the consumer value of the goods advanced features- delivery on credit, installation, service, guarantees, price. The price in this model does not act as a marketing tool, but as a characteristic that is organically inherent in the product. The fourth level represents the characteristics associated with the personal characteristics of the consumer - public recognition, advantages over competitors, new prospects, well-being. According to V. Blagoev, this level is important for correct positioning in the market.
Product in marketing activities, product development. Formation of commodity policy.
Lecture plan:
1. The concept of a product in marketing.
2. Product life cycle.
3. Formation of commodity policy.
4. Market attributes of the goods (trademark, packaging, labeling)
5. The concept of a new product. Reasons why new products fail to enter the market
The concept of a product in marketing
Common definition of a product- "a product of labor produced for sale" - remains, of course, true in marketing.
However, in most of the literature on marketing, it is not so much the role of the product in its exchange for money that is emphasized, but the ability to use it, consume it: Product- this is a means by which you can satisfy a certain need ”(F. Kotler).
Commodity name anything that can satisfy a need or requirement and is offered to the market for the purpose of attracting attention, acquisition, use or consumption.
Used in marketing three-level product structure:
1) goods by design - a way to solve a problem or the main benefit for which the consumer purchases the product (“We produce cosmetics at the factory, and we sell hope in the store”);
2) real product - the level of quality, a set of properties, external design, brand name, packaging and other properties that together determine the benefit from the acquisition of the main product;
3) backed goods - additional services and benefits for the consumer, created on the basis of the product as intended and the product in actual execution.
The product has a certain quality. Product quality is a very capacious concept.
Under quality is understood as a set of properties and characteristics of a product that determine its ability to meet the requirements in accordance with the purpose of this product.
From the point of view of the manufacturer, a product is of high quality if it meets the requirements of regulatory and technical documentation (GOST, OST, TU ...).
The opinion of the consumer about the quality of the goods is very subjective, and everyone has their own. If the consumer is satisfied with choosing the best result for himself, then we can say that the purchased product is a quality product.
Depending on the duration of use and material properties, goods are divided into three groups:
1. Durable goods¾ material products, usually withstanding repeated use. Examples of such goods are refrigerators, machine tools, clothing.
2. Non-durable goods¾ material items that are completely consumed in one or more cycles of use. Examples of such products are beer, soap, salt.
3. Services¾ objects of sale in the form of actions, benefits or satisfactions. Examples of such products are a haircut at a barbershop or repair work.
To order and systematize the properties of goods, goods are distinguished:
- consumer purpose(food, clothing, furniture, household appliances, etc.);
- industrial purpose(materials, machines, equipment...),
Consumer goods- Goods purchased by final consumers for personal (family) consumption. Based on the purchasing habits of consumers, the following types of consumer goods can be distinguished:
- everyday goods - goods that are bought often, without hesitation, with minimal comparison with other goods (basic goods, impulse purchase goods (chewing gum, sweets), emergency goods (umbrella in the rain);
- preselection goods - the buyer acquires in the process of selection and purchase compares with each other in terms of suitability, price, quality, external design (clothing, furniture, dishes);
- specialty goods - goods with unique characteristics or brands for which significant groups of buyers are willing to spend extra effort (cars, video cameras);
- passive goods - goods, the purchase of which, the buyer usually does not think, regardless of whether he knows or does not know about their existence (life insurance, novelty goods).
Such things marketers usually classify depending on the buying habits of consumers. In a simplified classification system, the entire set of types and types of goods can be ordered.
Products for industrial purposes- goods purchased by individuals and organizations for their further processing or use in business.
Industrial goods are divided into the following groups:
1. Basic equipment.
2. Auxiliary equipment.
3. Nodes and assemblies.
4. Basic materials.
5. Auxiliary materials
6. Raw material
7. Services
8. Manufacturing Services
9. Smart goods
Module 2: Managing Marketing Tools
Product range and brand management
Learning objectives
Provide information on the classification of goods and their place in marketing, the concept of the life cycle and the need for its application, product range management, the organization of the development and launch of new products on the market, brand policy and product competitiveness.
Introduction to Topic 5
You can consider marketing tools in any order, but traditionally they begin to study with the product, given its special importance in the complex of marketing tools.
The module shows the variety of products, their features that affect marketing decisions.
The concept of the life cycle is useful for monitoring and planning sales, justifying the product portfolio of an enterprise.
It is vital for enterprises to update their product range in a timely manner, to offer the market new products and services. This block analyzes the rational organization of the activities of enterprises to create and bring new products to the market.
Modern marketing is often called brand marketing, thus emphasizing the ever-increasing role of brands in achieving market success. The section analyzes the main issues of the brand policy of the company.
The competitiveness of the company's offer depends very much on such elements of the product as services, packaging, guarantees, therefore, these issues are reflected in the section.
Product as a marketing tool
The product has a special place in the marketing mix:
the product is designed to meet the needs;
without a product (service) there is no marketing;
product features largely determine the choice of decisions on other marketing tools - prices, distribution and promotion.
A product is anything that is offered to the market to satisfy a need or desire. These can be physical objects, services, persons, territories, organizations and ideas.
In marketing product is understood as a set of useful properties that meet the needs of the target group of consumers. In other words, the value of a product for the consumer depends on its properties (attributes). A product can satisfy needs through instrumental properties (for example, capacity, power, design, etc.) and emotional properties (prestige, fashion, etc.).
The understanding of a product as a set of properties is clearly expressed in the multi-attribute product model. F. Kotler suggested using three- and five-level models to describe the product.
IN three-level model stand out:
goods by design: a set of basic functional characteristics (for example, the properties of a washing machine to wash, wring, dry, etc.);
goods in real performance: material of manufacture, brand, packaging, specific technical and consumer properties and indicators, appearance;
product with an extension: guarantees, service, delivery (for example, a subscription service for repairing a washing machine at the consumer's home).
Five-level model
additionally includes:expected product (the minimum set of properties required by the product from the point of view of the consumer);
future product, i.e. expected and possible characteristics of the product in the future.
Such an idea of the product has not only theoretical, but also practical significance. All goods of a certain group are practically the same by design, for example, all watches are used to measure time. Differentiation of goods is carried out at the level of a product in real performance and a product with an extension.
A similar approach is considered by J. Lambin, who singles out nuclear properties of the goods(functional utility), peripheral properties related to the main function of the product (comfort, economy, service, etc.) and added services(not related to the main function, but increasing the possibility of customer satisfaction: for example, offsetting the cost of a used product to be traded against the purchase of a new product).
Goods classification
Goods and services
Activities offered on the market or ways to meet needs.
Services are intangible and cannot be owned by individuals or organizations. Services, as opposed to physical goods, possess a number of features:
intangibility;
impossibility of storage;
the coincidence of the moment of production and consumption of services;
service quality heterogeneity.
Examples consumer services Keywords: education, health care, household services, housing and communal services, passenger transport.
Examples industrial services: consulting, advertising services, logistics services, telecommunications, recruitment, financial services.
Some goods have the qualities of both physical products and services. For example, restaurant business services include service elements and product elements.
The features of the services necessitated the development of a special area of modern marketing - service marketing.
Consumer goods
Physical goods are usually divided according to their primary purpose into consumer And production.
In marketing, it is customary to distinguish four groups of consumer goods, depending on the frequency of purchase and the effort that buyers are willing to spend on their acquisition.
Goods purchased with minimal effort. These are consumer goods that are purchased frequently and in small quantities. Such goods are usually easily replaceable, the consumer, not finding his preferred brand in the store, usually buys another. This category includes essentials, impulse purchases, and emergency items. Examples of such products are oil, soft drinks, washing powders, chewing gum.
Pre-selection goods (shopping goods). Shopping items are usually purchased infrequently. When buying such goods, the consumer first compares familiar brands in terms of price, quality, compliance with their own tastes, fashion and other criteria. Usually, before making a purchase, consumers visit several outlets, and sellers can have a great influence on them with their advice and advice. This behavior is typical when choosing furniture, clothes and shoes, durable goods and other expensive items with a low purchase frequency.
Goods of special (special) demand. These include products that have unique characteristics in the eyes of the consumer, so he is willing to spend significant effort to purchase them. In relation to such goods, the buyer does not resort to comparing brands. Knowing exactly what he wants, he actively searches for a point of sale where the desired brand is offered. The main role here is played by the buyer's commitment to one or more noticeable properties of the product or brand. Examples of goods of this type can be a certain brand of watches, spare parts for a car, some medicines, special literature, luxury goods.
Goods of passive demand. The consumer may or may not be aware of the existence of such products, but is poorly aware of the need for them. One example of such a product is burglar alarms for the home.
The considered classification is used not only for consumer goods, but also for services.
Industrial goods
Industrial goods
purchased for use in industrial production or end use. These include:materials (plastics, steel, sand) and components (computer boards, tires, pens);
capital goods - stationary structures (buildings, machines) used to manufacture finished products of the enterprise, and auxiliary equipment (lifting equipment, computers, office furniture) that is necessary to ensure the production process. Similar products are used by enterprises for a long period;
auxiliary goods and services (lubricants, consumables for computers, fax machines, repair materials) that are not part of the finished product manufactured by the enterprise.
Product policy and product life cycle
Each product is present on the market for a certain period of time, which is called product life cycle (LCT). ZhCT is usually divided into four stages (Fig. 5.1 
).
The first stage - introduction - the period of appearance of the product on the market.
The second stage - growth - the period of recognition and distribution of goods on the market.
The third stage - maturity - the period of greatest stability in the sale of goods, market saturation.
Fourth stage
- decline - a period of decline in sales.Marketing strategies at the stages of the life cycle
Life cycle theory
implies the need to change the marketing strategy at its different stages, since the economic and competitive environment changes in each phase of the life cycle; the structure of costs and profits is different for each phase of the life cycle.At various stages of the life cycle, sales volumes and profits change, so the company builds its market activity in different ways, counting on the fullest possible use of the features of a particular stage.
IN product launch phase sales are insignificant, the enterprise cannot cover the costs associated with the development of a new product. The shorter this phase, the better for the firm.
In this situation, the strategic priority for the manufacturer is to form primary demand as quickly as possible in order to quickly move into the growth phase.
Main marketing tasks
at this stage are:informing customers about the properties of the new product;
stimulation of initial purchases;
formation of distribution channels.
The growth phase is characterized by the rapid development of sales. At the same time, production costs are reduced due to an increase in output and a decrease in prime cost. Marketing expenses are spread over rapidly increasing sales volumes. Cash flows become positive. At the same time, competition is intensifying, which can put pressure on prices.
Priority tasks
in the field of marketing are:increasing consumer loyalty to the brand;
improving the assortment and improving the quality of goods;
expansion of the sales network;
attracting new consumer groups, including by lowering prices.
Since demand expands in this phase, competitors have room to grow without resorting to harsh actions (such as competitive warfare).
In the maturity phase, demand growth slows down or stops. Most retail products are in this stage. The stage is characterized by strong market segmentation, differentiation of manufactured goods, high speed of product modification to extend their life cycle. The strategic objective for most enterprises is to maintain their market share. The main marketing efforts are aimed at improving products, clarifying segmentation and searching for market niches, new areas of product application. Prices have a downward trend, enterprises pay much attention to finding reserves to reduce production costs. The cost of advertising, which is predominantly reminiscent, is reduced. It is at this stage that enterprises receive the highest profit from the product.
In the decline phase, sales and profits decline, so some firms leave the market, while others, on the contrary, try to specialize in the residual market, if it is still of economic interest to them and if the decline is gradual.
The presented model of the life cycle is theoretical. In reality, the characteristics of the LCT may be different. Often, goods receive a "second life" if the manufacturer has managed to find new effective areas of product application. So it was, for example, with nylon. It should also be borne in mind that some markets periodically contract and then rise again. This can occur under the influence of fashion, changes in attitudes, tastes and other reasons. An example is the dynamics of demand for natural fibers for fabrics. The appearance of synthetic fibers led to a significant decrease in demand for wool and cotton, but then the demand for these materials began to grow again.
Development of new products
Importance of new product development
The limited life of a product on the market and competition are the main reasons that encourage enterprises to master the production of new products. Experience shows that firms that are the first to offer new products receive significant advantages over competitors. The development and development of the production of new products is one of the main ways to adapt an enterprise to constant changes in the external environment and survive in a competitive environment. According to studies (Lamben, p. 495), in 1995, new products introduced over the past five years accounted for 45% of all sales. Successful innovations bring companies high profits.
Market novelty
- these are not only fundamentally new products that satisfy a new need (windsurfing, hang glider), or goods (services) that satisfy existing needs in a new way (VCR, DVD player). This is also a new package of an already known product (for example, a new package of Tetra Pak milk). The use of new raw materials and technologies are also signs of market novelty of goods. A study of 700 firms and 13,000 new industrial and consumer products made it possible to identify several types of new products. (Lamben, p. 498)
Table 5.1
Typology of new products
Success factors for new products
Not all novelties live up to the expectations of developers. Studies show that about half of new consumer products fail to gain market acceptance. Given the huge losses that firms incur in the development of new products, it is important for practice to know the main factors that affect the success of new products. Analysis of studies of this problem allows us to identify several key factors success in the development and launch of new products:
compliance with explicit or latent market needs;
superiority over competing products;
compliance with the resources and skills of the company;
thoughtful and active marketing of a new product;
attractiveness of the market (in terms of capacity and profitability);
the use of synergistic effects in production, sales and marketing;
rational organization of the development of a new product and its introduction to the market.
Using brilliant green or iodine is inconvenient - there is a risk of staining your hands or clothes. A doctor from St. Petersburg V. Denisov found a simple and effective solution to this problem. The product he created is an ordinary marker, which is filled not with ink, but with brilliant green or iodine. The doctor patented his invention and called it "lekker" - from the words medicinal marker. In 2000, he began production of a novelty, and the market quickly "recognized" the new product. At the beginning of 2004, the monthly sales of leckers in Russia and a number of CIS countries amounted to about 200,000 pieces.
(“The Secret of the Firm”, No. 11, 2004, p. 15).
New product development process
The creation of new products is associated with market, financial and technological risks, which can be reduced primarily through the use of rational procedures for the development and mastering of the production of new products. Practice has developed a rational procedure for developing a new product (Fig. 5.2).
Search for ideas
When looking for ideas for new products, they pay attention to the development of needs, study the behavior and motivation of consumers, the development of promising areas of human life (suburban housing, motorization, informatization, entertainment, etc.). It is important to study technological and commercial innovations (new materials and production technologies, new ways of marketing communications, methods of sale, packaging, etc.).
Sources of ideas for new products are consumers, trade specialists, designers, designers. The task of the marketer is to evaluate the importance of new product ideas and select them from the standpoint of customer needs and enterprise capabilities.
Non-standard ideas, unusual solutions to consumer problems can be of particular value.
Lateral Marketing
- a new direction in marketing, focused on the development of new products using non-standard methods.Lateral Marketing Scheme
Step 0 . Select a product or service.
Step 1 . Choose one of the levels of the vertical marketing process: market level, product level, other parts of the marketing mix.
Step 2. Perform a lateral shift.
market level.
Change one aspect:
-
the situation;
need or utility;
Item level.
Apply one of six methods to a product element (packaging, brand attributes, usage, etc.):
-
exception;
Union;
reorganization;
hyperbolization;
inversion.
The rest of the marketing mix.
Apply the commercial formula of other categories:
pricing formula;
communication formula;
distribution formula.
Step 3 Connect the gap by estimation method:
imagine the buying process;
highlight the positives;
Determine the possible environment for the actual use of the product or service.
“The Secret of the Firm”, No. 11, 2004, p. 14, F. Kotler, F. de Bez “New marketing technologies. Techniques for creating brilliant ideas).
Idea selection (screening)
At this stage, the most promising ideas are selected for further development. In doing so, two criteria must be taken into account:
1) market prospects of this idea;
2) the potential of the enterprise, the possibility of implementing this idea, taking into account the available production resources and experience.
If the idea or ideas meet these criteria, then it is advisable to continue their development, if the idea does not “pass”, then it is necessary to return to the previous stage - the search for new ideas.
Product concept development and testing
The concept definition of a new product is a description of the final characteristics of the product and the set of benefits that it promises to a certain group of consumers. can be tested with the involvement of potential consumers. The main task of this stage is to find out how interesting the new product is for the market, whether it meets the needs of potential buyers, whether the advantages of the new product are real, how it can be used by consumers. Qualitative research methods can be used to test the product concept.
When developing a product concept, a technique can be used Quality Function Deployment (QDF). One of the main tasks in creating a product is to determine its quality characteristics, which must meet the requirements of target consumers and ensure the necessary competitiveness of products.
The use of the RFK technique involves a sequence of actions that can contribute to the successful solution of the problem.
The desired benefits and the characteristics of the product desired for consumers are determined.
Relationships between the requirements of consumers to the product and the technical parameters of the product are revealed.
The characteristics that are most important to the target market are selected.
The consumer perception of the product-competitor is established.
The level of competitiveness of the goods is measured.
Economic analysis
Economic analysis consists in a preliminary study and evaluation of costs and possible results that can be achieved by the enterprise when organizing the release of a new product. To do this, the demand and expected sales of goods are estimated, investments for development and production are determined, the cost of production, expected profit, cash flows, payback periods of the project and other indicators are calculated. If the estimated costs and profits are acceptable to the enterprise, then you can proceed to the next stage of development. Otherwise, the continuation of work on a new product is not economically feasible, it is necessary to search for new, more productive ideas.
Associated with research and development work. The result is design and technological documentation, prototypes of products that are subjected to comprehensive testing. This stage is the most time consuming and expensive. To manage the development process, network diagrams are often used, which reflect the sequence of various works and operations and allow rationalizing this process.
In parallel with the creation of a product, a marketing mix should be developed, which will be used when bringing the product to the market.
Trial Marketing
Trial Marketing can be used to more accurately determine the sales volume of a new product and develop marketing tools, including price, packaging, promotional tools, placement on the trading floor, etc. Various methods can be used for this. For example, a novelty may be sold first in one of the retail chains. Another variant of test marketing is to conduct test sales in two cities, while using different options for prices, promotions and other tools. Based on the test results, if necessary, changes are made to the product, prices are adjusted, and the most effective advertising media are selected.
Bringing the product to market
The introduction of a new product to the market is carried out taking into account estimates of expected demand. By the time the goods are launched on a wide market, the necessary production capacities must be created, contracts for the supply of raw materials and components for the manufacture of products in the required volumes must be concluded, sales agents have been trained, and relations with trade organizations have been worked out. It is very important to properly plan and conduct a campaign to promote the new product to the market.
An example of a successful development and effective marketing program for introducing a new product to the market is Lego's famous Bionicle children's monster toys. One of the most important factors that determined the success of a novelty in a very complex market for children's goods is a competent policy of bringing the novelty to the market and the use of an integrated approach to its promotion. How was Bionicle created?
Problem: short life cycle of toys, fragility, complexity.
Toolkit: comprehensive promotion.
Lego designers came up with the idea of buildable action figures.
Studio "Miramax" shot the cartoon "Mask of Light".
THQ has written the computer game Bionicle: The Game.
Result: in three years, sales increased from 40 million packs to 100 million packs, its sales account for 40% of the company's turnover.
(Company, No. 47, 2003, pp. 68-69).
Product portfolio management
Product range- a set of all manufactured goods (services) of the enterprise. As a rule, the assortment is usually grouped into commodity (product) lines. A product line consists of interrelated products, and the commonality of the products included in its composition may be:
the purpose of the goods (creams for skin care);
raw materials used (plastic products);
production technologies (stamped products);
ways and channels of sale (goods sold through supermarkets).
The product range can be characterized by several indicators, the main of which are:
width (number of product lines);
depth (number of products in one product line).
Product portfolio management is one of the most important functions of marketing in the enterprise. In many enterprises, the marketing service is organized on a product basis, and assortment issues are part of the main tasks of product managers or brand managers.
Relationship between assortment policy and corporate and marketing goals
Assortment policy company depends on the objectives of its activities. With a focus on growth, increasing market share, the company will strive to expand the range in order to increase the coverage of the target market, to achieve greater penetration of its products. If profit targets prevail, then it is advisable to concentrate efforts on the most advantageous positions, reducing product lines by refusing to produce low-margin products. The assortment affects costs and profits: the more commodity items in the company's portfolio, the higher the cost of production, ceteris paribus.
Decisions on the development of the product range are made on the basis of:
the goals of the enterprise;
market needs, consumer expectations in acquiring the useful properties of goods, their motivation and behavior in the market;
available production resources, financial capabilities, marketing system, staff qualifications.
Determining the composition of product lines belongs to the field of corporate management. In this case, the results of portfolio analysis should be used, showing the attractiveness of the development of various activities, product lines and brands.
Major product line decisions
At the level of marketing management, decisions regarding the composition of each of the product lines are justified. Consider main types of solutions for the development of product lines.
Analysis of economic results of production and sales
One of the tasks of a product manager is to assess the profitability of producing goods, their “contribution” to income and profit. The product manager must constantly monitor the contribution of the product line and individual products to total sales and profits. This is possible on the basis of, first, knowledge position of the product line in the market(sales dynamics, market share or in a separate segment), secondly, data analysis on turnover, profits and costs businesses with respect to a particular product line or individual product. It is useful to use several indicators for monitoring:
marginal profit from the sale of a unit of output (m), equal to the difference between the selling price (p) and specific variable costs for the production and sale of a unit of output (v):
m = p - v;
marginal profit margin:
n = m / (p - v) ;
the amount of coverage from the sale of each product:
M = m q ,
where q is the value of the sale of a particular product;
profit from the sale of the product:
U = (p - c)q,
where c is the cost of a unit of goods;
profitability of production and sale of individual goods:
r = U / (p q) .
Changes in these indices or their deviation from the planned values may serve as a basis for making changes to the range of products.
For each commodity item, a break-even point should be calculated. determines the volume of sales of products at which revenue covers the costs of production and sale of goods. This indicator can be calculated in different units of measurement.
IN natural indicators(pieces, meters, kilograms):
TBN \u003d F / (p - v) .
IN monetary terms:
TBD = TBN p = F p / (p - v).
When justifying a number of decisions (for example, regarding the development of a new product), one should not only determine the absolute value of the break-even point, but also evaluate it in terms of the size of the market. The market share that an enterprise needs to win in order to break even production is calculated by the formula:
D = TB / Q,
where Q is the volume of the market for this product.
Example 5.1
The company produces cottage cheese, which is sold on the local market. Selling price - 45 rubles. for 1 kg. Variable costs are 30 rubles. per kg., and fixed costs - 90 thousand rubles. per month. The total sale of cottage cheese in the city per month is 30 tons. In this case, the breakeven point is:
90000 / (45 - 30) = 6000 kg.
In monetary terms, it will be:
6000 45 = 270 thousand rubles
Market share corresponding to the break-even point:
6000 / 30000 = 0.2 or 20%.
The amount of sales that provide the desired profit margin can be calculated using the formula:
q = (TP + F) / (p - v),
where TP is the amount of the desired (target) profit.
K = R - TB / R,
where R is the actual sales volume.
Trademark Management
Importance of brands in marketing
Modern marketing considers brand policy as the most important tool for achieving customer loyalty and competitive advantage.
This is a name, symbol, design, or combination thereof, intended to identify the goods of the seller (manufacturer) and to distinguish them from competing goods.
The brand as a whole or part of it, provided with legal protection, is a trademark and becomes the subject of legal regulation.
The main functions of the brand:
identification of goods and services;
simplification of the search and selection of goods for the consumer;
means of competition;
means of achieving consumer loyalty.
Branded products enhance the value of products, distinguish them from the mass of similar products, emphasize the benefits for consumers, ensure the success of sales, etc. Assigning a branded name to a product is associated with an assessment of the possibilities for obtaining real benefits and the costs of achieving them.
The main requirement for branded products- the constancy of its quality, otherwise the brand cannot fulfill its functions. Some goods cannot be branded due to quality instability (vegetables, fruits, some services).
Brand creation
Creating a brand is a complex process, ultimately aimed at creating a favorable brand image among consumers that contributes to successful sales. is its perception by the consumer, which is determined by a combination of three elements:
1) the quality of the goods;
2) clear identity;
3) added value.
The main objective of brand management is to create a consumer perception of the added value of a branded product by conveying messages to the consumer about the distinctive features and benefits of the company's offer (ie through brand identity). Ultimately, brand image will be determined by the totality of the product's instrumental and emotional properties and efforts to promote it. The last factor is determined by a successful creative solution and the amount of promotion costs, primarily advertising.
Creating a brand is associated with significant costs for its presentation to the market. So, for the formation of a nationwide brand in Russia, as practice shows, at least 2 million dollars are required. Creating global brands costs tens of millions of dollars. Maintaining brand awareness requires a comparable annual cost. As compensation, brand owners receive a so-called brand premium, which represents a certain premium on the price of a branded product, more sales and consumer loyalty.
Major Brand Solutions
Major Decisions in the field of brand policy:
choice of brand name;
determining the market power of the brand;
developing a brand strategy.
Choice of brand name
Must meet certain requirements. In particular, it should correspond to the nature and quality of the goods, not resemble another designation and appear as an independent image, be concise, easy to pronounce and easy to remember. The possibility of using the brand name to identify other products of the company should be considered. Some names may reduce brand extension opportunities. For example, the brand "Rastishka" has a very obvious area of use. On the other hand, the name "Comfort" is hardly suitable for products intended for teenagers.
There are procedures for pre-testing the brand name. They determine the associativity of the brand, its memorization, preference, as well as the absence of ambiguity, etc.
Often successful brand names become common terms for categories of goods and lose their original meaning as an identifier for a particular firm's products. As an example of such brands that have turned into the name of a product category, one can cite aspirin, copier, vaseline.
Determining the market power of a brand
Market power of the brand determined by consumer preference. For consumer products, an important indicator of a brand's strength is its position in distribution channels. As a rule, the stronger the brand, the more outlets it can be found. Another manifestation of the strength of the brand is the size of the brand premium: the stronger the brand, the higher the price for it, as a rule, and the relatively large part of the total profit remains with its owner (respectively, the share of other participants in the distribution channels is smaller).
An enterprise can create a brand as an international, national or local, regional. The choice of option will depend on a number of factors, including the chosen target market and its development strategy, capacity and expected sales volumes, the company's image and its financial capabilities.
An analysis of the branding policy of enterprises shows that it makes sense to invest heavily in brand promotion only if the goods have high quality characteristics.
Brand Strategies
An enterprise can choose different options for identifying manufactured goods:
release of products under the generic name (for example, fat cottage cheese, doctor's sausage);
organization of production of goods under the brands of other enterprises after the conclusion of an appropriate agreement with the owner of the brand;
assigning brand names to manufactured products;
release of goods for trade under the brands of commercial enterprises (private brands);
using two or more of the above options at the same time.
Food products, raw materials, products of the first processing stage and other homogeneous or poorly differentiated products are often offered to the market under generic names.
Often, firms, especially new or little-known ones on the market, produce goods under well-known brands from other suppliers. In this case, there may be different options for cooperation: an enterprise can produce finished products under a well-known brand or supply components for the production of finished products. In any case, licensed production brings considerable benefits:
allows you to download free capacity;
brings additional profit;
reduces promotion costs.
Gloria Jeans, Russia's largest manufacturer of jeans, produced 500,000 jeans under the Signature brand for the famous Levi Strauss in just six months, which exceeds 3% of the total output of the Rostov enterprise. 380,000 of this lot went on sale to a no less legendary company, the Wal-Mart network. Under the American order, a factory for 1.5 thousand jobs was built and equipped. The profitability of the order is not very high, but Gloria Jeans sees the main goal in this case not in profit, but in something else: cooperation with a well-known global manufacturer is the most powerful PR for the company, which can bring significant dividends in the future, in addition, the company received access to the most advanced production technologies.
(“The Secret of the Firm”, No. 13, p. 13).
If an enterprise decides to use its own brands, then it has several options for their use.
Individual brand strategy (single brand) involves the assignment of a separate brand to each manufactured product. For example, a large chemical plant produces washing powders with different brand names: Lotus, Era, Gloss, etc.
Advantages of single brand:
the brand is not associated with the manufacturer, so if the product fails, its image does not suffer;
the possibility of obtaining more space on the shelves.
The disadvantages of the strategy are associated with the need for significant costs for the promotion of various brands. Such a strategy is realistic for large and financially powerful firms. A similar strategy is used, for example, by Procter & Gamble.
Consists of using one brand for all products of the enterprise. A single brand involves the use of the same brand name for all manufactured goods. One of its advantages is to reduce the cost of creating and advertising a brand.
A single brand makes it easier for an enterprise to introduce new products to the market, because the brand known to the consumer serves as a certain guarantor of the quality of the goods. However, if an enterprise produces products for various purposes, it is almost impossible to choose a brand name that is successfully associated with all products. As a result, the image of the brand becomes vague, the clarity of its identification is lost. In case of failures with the introduction of new products, the prestige of the overall brand and the entire enterprise is reduced. If an enterprise produces products of different quality and different price ranges, a single brand can mislead the consumer. Another problem is related to the image of a single brand - the attitude of consumers and resellers towards it can become an obstacle when entering new market segments.
Examples of companies adhering to this strategy are Sony, Volvo.
Umbrella brand strategy (family brand strategy)- the same brand name is given for separate groups of goods or different product lines. Advantages umbrella brands is to reduce costs when introducing a new product to the market, as a result of using a brand familiar to the consumer. If products are intended for different market segments, then umbrella brands are a convenient means of developing different markets.
Family brands are successfully used by Wimm-Bill-Dann. So, in the market of dairy products, its products are sold under the brands "House in the Village", "Sweet Mila", "Merry Milkman". The launch of parallel brands on the market pursues an additional goal - to increase the presence of the company's products on the shelves, to push out competitors in the struggle for a place in the trading floors of stores.
Often enterprises are added to the main brand (which often coincides with the name of the company) to identify specific products or models. sub-brand. Such a strategy is typical for car manufacturers, for example, Opel Astra, Opel Vectra.
Using a successful brand name to launch new products or products from other groups. This strategy leads to savings in the release of new products for the company, the development of new markets, it allows you to effectively increase the volume of activities. An example of brand expansion is Nike, which originally produced sports shoes and then successfully expanded the boundaries of the popular brand into sportswear and accessories.
Brands and consumer loyalty
One of the most important tasks of marketing is to form the commitment and loyalty of consumers to the brand of the enterprise. Consumer loyalty usually not absolute, there is a possibility that a consumer loyal to a certain brand can buy a product of another brand acceptable to him (probability of switching). Loyalty metrics can be used to determine the market share of a brand or product.
There are three brands on the market: A, B, C. On the basis of marketing research, it has been established that the one who bought brand A will purchase it again next time with a probability of 70%; the buyer has a 20% chance of switching to brand B and a 10% chance that this buyer will buy brand C. For a buyer of brand B, the transition probabilities are: to brand B - 40%, from B to A - 50% and from B to C - 10%. For brand B, the probability of maintaining loyalty to brand B is 20%, the transition from B to A is 60%.
In the current period, the market shares were: for brand A - 40%, brand B - 30%, brand C - 30%.
In the next period, taking into account the upcoming shifts, the market shares of individual brands will change and will amount to:
grade A: 0.7? 40 + 0.5? 30 + 0.6? 30 = 61%;
grade B: 0.2 × 40 + 0.4 × 30 + 0.2 × 30 = 26%;
grade B: 0.1 × 40 + 0.1 × 30 + 0.2 × 30 = 13%.
Private labels
Trademarks were first used by industrial enterprises. They also began to extract the main benefits from the use of the brand name. Manufacturers of the strongest brands (the so-called A brands, which usually include national, international and global brands) have a large market share due to high consumer loyalty and make huge profits. Wholesalers and retailers should include such brands in their assortment, despite the fact that the profit from their sale is relatively low (the main part of the profit from the sale of such goods remains with the producer - the owner of the brand).
In the 60s. of the last century, an active process of using brand names in trade began in a number of countries, which is explained by several reasons.
Consolidation of retail enterprises, the development of retail chains strengthened their position in the purchase of goods. The balance of power in the relationship between trade and industry has changed in favor of the former.
The desire of trade to use the benefits of its own brand policy helps to increase the competitiveness of stores, enhance customer loyalty, and increase sales.
Large chain stores began to use their own brands, which were called private labels. Similar brands are also used by some wholesalers.
Private label owners offer industrial enterprises to produce goods under a private label. Often, private labels produce almost the same goods as under the manufacturer's brand. The release of goods under private labels is often beneficial for industrial enterprises, as this increases the utilization of production capacities and provides additional profit. The manufacturer bears no risks from the sale of such products. For new market entrants, this strategy is often the most convenient way to make themselves known.
Consumers also benefit from the use of private labels. Retail prices for such goods are 15-30% lower than for products of similar quality under the brand name of well-known manufacturers. At the same time, the retail margin for these goods is higher than for branded goods of manufacturers, because retail buys its own brands at fairly low prices.
Currently, the share of goods sold under private labels is 22% of retail sales in Europe and 16% in North America (Company, No. 45, 2003, p. 62).
In Russia, there are also prerequisites for the active use of private labels by trade:
store chains are formed;
many domestic enterprises have unloaded capacities;
low incomes of the population cause high sensitivity to prices.
Private labels in Russia
. One of the pioneers in the use of private labels in Russia was the Ramstore chain, which began selling in 2001. Mineral water, dairy products, sauces, dishwashing detergents and washing powders are now sold under their own brand, they account for 3-5% of total sales. The Perekrestok network sells about 200 items of goods under private labels, accounting for 2.5% of the turnover. The company plans to increase the share of privet label up to 20% by 2007. The Kopeyka network has even more ambitious plans - the management strives to bring sales of goods under the company's brands to 50% of the turnover.Consumer spending on the purchase and use of the product(price, operating costs, repair costs, spare parts).
It is generally accepted that when choosing a brand or product, the consumer compares the value of various options (the ability of the product to meet consumer expectations) with the costs, i.e. the selection criterion is the ratio value / cost.
Methodology for assessing competitiveness
The definition of competitiveness is important for both existing products and new products. There are different methods for assessing competitiveness. The scheme of these methods looks like in the following way.
The main goods (goods) are determined in relation to which the competitiveness of the enterprise's products will be assessed and serve as a basis for comparison. Products of competing enterprises or an "ideal" product can be selected.
On the basis of special studies, product parameters are established that are important for consumers and which are taken into account by them when making purchase decisions. The set of such characteristics depends on the type of product and the target market. It may include functional properties - power, capacity, durability, ease of use, energy intensity, safety, environmental friendliness, etc., as well as social, emotional qualities - conformity to fashion, prestige, compliance with the social status of the user, etc.
The identified parameters are ranked in accordance with the values that buyers attach to a particular characteristic when choosing a product.
Consumers evaluate the selected parameters of compared products. Often, quantitative indicators are used for evaluation (for example, a score on a ten-point scale may be used).
Competitiveness is assessed on the basis of comparing the indicators of the compared product with competing products (as well as with standards, samples, etc.). When comparing, private indicators can be used (specific properties from among technical, functional, price and other characteristics); group indicators (for example, ergonomic characteristics of products); integral indicators (general index of competitiveness). The integral indicator is usually calculated as a weighted value of private assessments of competitiveness.
identification of goods by the buyer;
protection of goods during storage, transportation, loading and other technological operations;
facilitating the use of the product by the consumer (ease of opening, pouring out the contents, etc.);
packaging is often a means of market segmentation and differentiation of goods, for example, packaging for families of different sizes;
the formation of a certain image, perception of the product (for example, it is impossible to imagine expensive prestigious perfumes in cheap packaging).
The creation of packaging is carried out simultaneously with the development of the product. However, even the most successful packaging requires systematic updating and certain changes. The reasons for such modifications may be changes in the tastes of buyers, purchase methods, trade technology and store formats, changes in the properties of the product itself, repositioning of the brand, new trends in the use of colors and packaging forms, the emergence of more advanced packaging materials.
2) installation and installation of products;
3) user training;
4) warranty service;
5) exchange or return of goods;
6) consideration of consumer complaints.
The first three types of services are especially important for industrial markets.
This is a manufacturer's or trader's assurance that the product meets accepted quality standards. The need for warranty service is associated with the likelihood of defects that reduce the life of the product. Defects are fixed free of charge within a set period of time.
Post-warranty service made for a fee at certain rates and tariffs.
A very important form of after-sales service is to consider consumer complaints. This is important because it is necessary to create a positive image of the enterprise, eliminate the possibility of potential consumers moving to competitors, and also form differentiated advantages of the enterprise. Rationally organized complaint handling acts as one of the means to reduce the negative perception of the consumer about the purchased product, it provides information for product improvement and can serve as a source of competitive advantages. In this regard, the enterprise makes decisions on the creation of a procedure for handling complaints and organizing feedback from consumers.
Appliance suppliers comparing warranty service to a headache is easy to understand. Warranty service support is a purely expensive thing, besides, the work of negligent partners can at any time cast a shadow on the name of a reputable company, but gradually taking care of warranty repairs becomes a priority for an increasing number of manufacturers.
Today, many manufacturers combine forms of free after-sales service, using schemes such as "one plus two", for example. A year is actually the warranty period, as it is interpreted by Russian laws, and the next two years are just free service. After the expiration of the annual period, the manufacturer no longer bears formal warranty obligations, and his work is not subject to the legislation of the Russian Federation, which obliges him to accept equipment for repair even in cases where the client has violated the operating rules, but this is difficult to prove, and besides, the replacement of goods is not provided.
To provide service support, any company follows one of the three models of work.
Cooperation with a dealer service center.
Main advantage: least expensive model.
Disadvantage: customers are sometimes denied warranty service because they purchased equipment from another dealer.
Contract with an independent service company.
Main advantage- high professionalism of the staff, which should be considered the result of their initial focus on service as a business.
Opening of the corporate center.
This is the best option for the consumer, which provides a high quality of service. However, branded service is an expensive thing, which is the main reason for the poor development of this model in Russia.
For Russian manufacturers of household appliances, the warranty period and quality of service are one of the important ways to attract customers, especially in the lower price segment. So, TPK "Consumer electronics "Sokol"" gives a one-year warranty and two years of free service. To ensure the maintenance of its products, Sokol has authorized 150 service centers throughout the country. In the signed contracts, the TV repair period is 14 days. For warranty service of equipment, Sokol transfers about 5% of the company's total budget to service centers.
(SF No. 23, 2003, pp. 33-38).
In marketing is everything that is intended to meet the needs of customers. Marketing decisions of companies significantly depend on the type of goods (goods or services), the type of market (consumer or industrial), and the behavior when buying different products.
Any product is on the market for a limited time, during which it goes through several evolutionary stages - from launching to the market to leaving it. A marketer must be able to correctly determine the phases of the life cycle and plan marketing activities in accordance with them.
The development of new products is the most important means of maintaining and service maintenance- one of the main components of a product that a company can use to increase the competitiveness of its products in the market.
