What is a product?

What is a product?

[vc_row][vc_column][vc_column_text]A product is a critical ingredient in a total market offer. The planning of the marketing mix begins with the formulation of a proposal that delivers value to the target consumer segments. This value offering becomes the basis on which the company builds profitable relationships with customers. The offering is also the basis of the company’s ability to compete in their designated market.

Set of attributes (characteristics, functions, benefits and uses) that give it the ability to be sold or used. Usually, it is a combination of tangible and intangible aspects. A product can be an idea, a physical entity (a good), a service or any combination of the three. The product exists for purposes and the satisfaction of consumer first and the capitol goals of the company second.

  • Primary product: is that basic service or benefit that the consumer seeks when buying the product. It constitutes the most basic and elementary level of the product.
  • Real product: The real product built on the primary product must have five attributes: quality level, characteristics, style, brand name and packaging.
  • Increased product: part of the original and real product to which it incorporates a series of services and additional benefits to consumers.

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The product life-cycle management

The product life cycle extends from the concept through to the moment a product produces sales and hopefully, profits and possibly beyond. The time extends from the very conception of the idea, its launch, growth and consolidation in the market, maturity and the decline of it. Each stage of the life cycle of a product requires distinct and different strategic actions. 

The life cycles have a different duration and activities for each product type. Details of a life cycle depend on the scope of innovation, the category of the product. There can be outside variables that will affect your product life-cycles momentum. Some examples of variables are changes in the marketplace, business model, or even in the habits of consumers. 

What is the length of time a life cycle can take to complete?

There are products with a short life cycle, such as all those related to fashion or entertainment. On the contrary, other products have very long life cycles, because as time goes by they find new utilities that allow them to expand their market or extend their maturity period, it is prevalent to see very long life cycles in consumer products massive. 

The product is an essential element for a company and largely determines its existence. That is why companies try to systematize the sales behaviour of their products through their permanence in the market. Not all products remain during the same period, and even the vast majority do not experience the same fluctuations in their sales, nor the same situation in terms of prices, advertising and marketing. The life of each product evolves differently, but following an identical cycle, its life cycle. The phases that make up this life cycle are as follows 

  • Introduction
  • Increase
  • Maturity
  • Slope
  • Disappearance

It follows that a product has a limited life; sales go through different stages; profits vary according to the cycle; products require different strategies according to the group, sales mark cycle change. [/vc_column_text][/vc_column][/vc_row][vc_row][vc_column width=”1/1″][vc_column_text]

The value proposition/offer

It is the core of your business model

Your value prop encompasses a whole series of functional, emotional and experiential benefits the company delivers to the consumer. When the product value is Communicated accurately to the consumer, they will recognize the value as a differentiator of your brand offering. This offering will distinguish the product from other competing products. The value proposition of a company represents the promise the company makes to its customer to create an emotional or intellectual connection to its product or service.

For the development of the value offer, we must ask ourselves the following questions:

  1. Which services do our customers need, and how can we help them?
  2. What aspirations do our clients have, and how can we help them achieve them?
  3. Kind of treatment do customers prefer? As a company, how can we adapt better to your daily activities?
  4. What relationship do customers expect us to establish with them?
  5. Why are our customers willing to pay?

A value proposition creates value for a market segment thanks to a specific mix of elements appropriate to the needs of that segment. The value proposition can be quantitative in functional terms (price, service speed) or qualitative with high emotional content (design, status, experience, customer experiences, aspirations, projections)[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]

Product strategies

The first Strategic focus of the product strategy is to define the path or the vehicle the product will take through the market.

Strategic pathways to becoming competitive

  • Compete through product proliferation 
  • Compete through value 
  • Compete through design
  • Compete through innovation 
  • Compete through the service
  • Compete through low cost 

Product diversification is currently the center of interest for companies and marketing and product managers. Product development and innovation are the main facets of competitive rivalry. Markets today are characterized by the expansion of new products, acquisitions and mergers. To keep pace, product teams need to pivot with fluctuations in the economic cycles, changes in demand, and technological disruption.

Product innovation

Innovations require significant new technology and budget funding. Change and digital transformations are integral to the success of a product in the current paradigm. Even if your product is not purely technological, it may be produce or clothing; technology will be an integral part of the success of your product. Some external technology could be your CRM, Supply Chain, Distributor Channels, Partner Channels, Marketing and social engagement channels. All of these channels and tools are elemental considerations of your product strategy.[/vc_column_text][/vc_column][/vc_row]