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The product - Coggle Diagram

- - - - Any change in a physical characteristic (design, color, size, etc.) no matter how small, creates another product. Each change gives the producer the opportunity to use a new set of messages to reach what is essentially a new market.
      - The product concept now includes the services that accompany the sale, and so we have moved closer to a definition that is useful to marketing people.
        The basic idea in this definition is that consumers are buying more than just a set of physical attributes.
        Basically they are buying the satisfaction of their needs or desires. Thus a smart firm sells the benefits of a product rather than the mere product.
- - - - Common use goods are consumer goods that the customer usually buys frequently, immediately and with minimal effort in comparison and purchase.
        
        Basic goods are those that consumers buy on a regular basis, such as ketchup, Heinz, or Ritz crackers.
        
        Emergency goods are purchased when the need is urgent: umbrellas during a downpour, or boots and shovels during a snowstorm.
        
        Comparison goods are consumer goods that typically go through a selection process during which the customer compares them on suitability, quality, price, and style.
        
        Uniform comparison goods are similar in quality but sufficiently different in price.
        
        Specialty goods are consumer goods with some very special characteristic, or of a specific brand, for which an important group of buyers is willing to make an effort to purchase.
        
        Consumer goods that the customer does not know. The new ones that although he knows about them, he does not buy them, such as smoke detectors or compact disc players, are products, until the consumer finds out about their existence through the media.
        
        Industrial goods. Industrial goods are those that are purchased by individuals or organizations for processing or use in running a business.
        
        Materials and parts. They are industrial goods that fully enter the product, either through processing or as components.
        
        The materials and manufactured parts include material components (iron, thread, cement or wire).
        
        The materials and manufactured parts include material components (iron, thread, cement or wire).
        
        -- Facilities are buildings (factories or offices).
        -- On accessory equipment.
        -- supplies and services.
- - - - Growth Stage:
        
        In this stage of market growth or acceptance, sales are growing rapidly, and competitors are entering the market in large numbers because the profit prospects are so attractive.
        The increasing number of competitors will lead to an increase in the number of dealers and sales will spike because resellers will build up their inventories.
        Prices will remain stable or decrease slightly. Producers will continue to spend the same or a little more on promotion to stay competitive and continue to educate the market.
        Companies opt for a "Buy my product" promotional strategy rather than a "Try my product"
        In this stage, companies use different strategies to sustain rapid growth; improve product quality and add new features and models; they penetrate new market segments and open new distribution channels; advertising changes.
        
        Maturity Stage:
        
        This stage is characterized by the accentuation of competition, the decrease in sales and the decrease in profits, normally this stage is longer than the previous ones where in the first part of this period sales continue to grow at a lower rate later. they tend to stabilize but the manufacturer's profits decrease, which is why the challenges faced by the marketer are greater because he is dealing with mature products, the decrease in sales means that the producers have many items to sell, in turn this excess of capacity implies greater competence.
        Competitors begin to lower prices, increase their advertising and sales promotions, and increase their research and development budgets to improve the product. These measures imply that profits decrease.
        The weakest will begin to leave the market and in the long run only those who occupy the best positions will remain.
        Product managers should not be content to defend it, for a good offense is the best defense. Then they have to think about modifying the market, the product and the marketing mix.
        
        Market Modification:
        
        To increase the consumption of the current product, the market can be modified as follows:
        
        Looking for new users and market segments.
        
        Looking to increase usage among current users.
        
        Seeking to reposition the brand to attract a larger or faster growing segment.
        
        Product Modification:
        
        It is also possible to modify the characteristics of the product with:
        
        A quality improvement strategy tends to increase product performance-duration, reliability, speed, flavor. This strategy is valid when quality is likely to improve, when buyers believe that it has improved, and when many consumers are looking for better quality.
        
        An aspect improvement strategy, adds new features that make the product more useful, safe or convenient. (Japanese, with artifacts and copies of devices).
        
        A style improvement strategy tends to increase the attractiveness of the product to attract buyers who want something new, for example (New colors, designs, flavors, ingredients, or packaging to revitalize consumption.
        
        Modification of the Marketing Mix:
        
        You can also modify the sales of the product by modifying one or several elements of the mix:
        
        The price reduction can attract new users and customers from the competition.
        
        Launch a more effective advertising campaign or use more aggressive sales promotion techniques such as trade or customer discounts, giveaways and contests.
        
        Switch to broader distribution channels through mass-type merchants, if growing.
        
        Offer new services to buyers, and improve those offered.
- - - - At this stage managers have to make very important decisions when identifying the aging of the products:
        
        Keep the brand unchanged in the hope that competitors will withdraw and on the other hand it may be decided to reposition the brand.
        
        Reaping the product, that is, reducing various costs (plant, equipment, maintenance, research and development, advertising, vendors) in the hope that sales will remain at a more or less adequate level for a certain time.
        
        Withdraw the product from the line and from the market, in this case you can sell it to another company or simply liquidate it at its scrap value.
- - - - Components of the Mix:
        
        In the design of the product mix, it is important that the company establishes the behavior that some of its components must assume. This behavior corresponds to the leading products, the attraction products, the tactical products. The characteristics of each of these products are:
        
        Leading Product: It is the product that provides the highest profits to the company.
        
        Attraction Product: It is the one that is used to attract the customer. For example, in the case of a company that sells televisions, it may have its economic model as its attractive product; This allows TV vendors the opportunity to offer customers the products in the mix.
        
        Stability Product: It is the product that allows the company to avoid fluctuations in sales that it could be experiencing.
        
        Tactical Product: Is one that is used by the company to strengthen its position against the competition.