Marketing Mix: The Product (B)
What is the role of the Product within the marketing Mix? What are the important aspects that determine the product?
Posted: Dec 2010
The Marketing Mix is composed of four core components: Product, Price, Promotion and Product Distribution. The product itself is the starting point in creation of marketing mix. Product needs to be designed first in order to have the price determined, promotion designed and product shipped to market.
The product is the subject of value exchange between manufacturer-supplier, through the market network to the final customer/consumer.
There are several important aspects of the product: Product development, Product Branding, Product Design and Product Quality. All aspects are important since they are all incorporated in product characteristics and determine the product performance.
Product development is the starting point of materialization of the product. The product development is depends of the company's competence in research and development. Research of the market and customer needs gives the guidelines of the future product characteristics. Research should give the more information about the market population, needs, habits, price sensitivity in particular market niche, market competitiveness and legislation that give the framework for potential new product. Development follows the research of the market needs. Development has the task to create the concept of the new product that should have the maximum chances of success and sustainability in the market.
Product branding is the important aspect of product creation. Product brand determines the perception of the consumer toward the product. There are several tactics for choosing the brand. The company can use existing brand and launch the new product under the umbrella of existing brand ( e.g. new flavor of beverage ). Sometimes the adjustments to the brand are possible ( brand name extension – suffix, with purpose of distinguishing of new product ). The branding can be executed globally with the same brand. In other cases the brand name can be linked with the local characteristics of the country.
Product design has a purpose to materialize the concept of the product that has been developed and branded. The design of the product does not just give the outside look of the product. Design must be in the line with the marketing approach, in order to support the market success and sustainability. Design cannot be in the function of satisfying the designer, but the targeted population and their demand. Successful design must satisfy the demands of manufacturing and technology that is used.
Design of the product must satisfy the following:
Competitive differentiation – to give the sustainable advantage
Production needs – providing cheaper and efficient production
Consumer needs, functionality, usability, quality and satisfaction of the consumer needs
Aesthetics - visual attractiveness of the product
Distributive network demands – suitable for low cost and efficient warehousing and transport
Quality of the product is the aspect that supports the preceding development steps. Quality has two dimensions:
Quality in terms of consumer perception
Quality in terms of performance
Integral approach to the quality covers all attributes and product characteristics, processes and services. The growing competition pressure increases the importance of the quality of the product. The sustainable quality directly influence the brand development and perception of the consumers
Marketing Mix: Price
Marketing Mix: Promotion
Marketing Mix: The Product
Marketing Mix: Product Distribution
Promotion Mix: Public Relationships
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Promotion Mix: Sales Promotion ( Soon )