In this article, we discussed the meaning of product marketing, types, product life cycle and we also talked about the stages and categories,
Definition
Product marketing is the process of communicating a product’s unique value to customers and internal teams alike. This means enunciating what customers are struggling with, how the product or service can solve their problems, and what sets the product apart in the market.
A product is any item or service you sell to serve a customer’s need or want. Products can be physical or virtual. Physical products include durable goods (such as cars, furniture, and computers) and nondurable goods (such as food and beverages). generally considered as a concrete good but it can also be an intangible service. Companies take a lot of time and effort to develop quality products that are in demand in the market. A good product is the very basic requirement of an effective marketing mix.
Products are broadly classified into two categories –
Consumer products
Consumer products are products that the ultimate consumer purchases himself for direct use. The consumer purchases these consumer products to satisfy his personal needs and desires. Some examples of consumer products are toothpaste, eatables, textiles, computers etc and various such products.
Types of Consumer Products
Convenience Products: These are consumer goods that are very convenient to purchase. They are bought frequently and with very little effort. Examples include medicines, toiletries, newspapers etc. Such convenience products have ongoing and continuous demand. Such goods are also bought in small quantities and are also generally lowly priced.
Shopping Products: To shop for these consumer products, consumers devote considerable time and effort. They compare prices and features and a lot of thought is involved before making the decision to buy. Some such examples are electronics, furniture, jewelry etc. These products generally fall in the higher price range. Such products are pre-planned purchases.
Specialty Products: For specialty products, consumers make special efforts to buy them. They are not your regular run of the mill consumer products. The buyer is willing to go through a lot of effort to purchase such products. Take for example any artwork, paintings, sculptures etc. The demand for such specialty products is usually pretty limited and the prices are high.
Unsought goods are goods that the consumers do not know about or does not normally think of buying, and the purchase of which arises due to danger or the fear of danger and lack of desire.
The classic examples of known but unsought goods are funeral services, encyclopedias, fire extinguishers and blood donations. In some cases, even an airplane/helicopters can be cited as examples of unsought goods. The purchase of these goods may not be immediate and can be deferred. Hence, unsought goods require advertising and personal-selling support.
Marketers have classified products on the basis of durability, tangibility and use (consumer or industrial). Based on the consumer products classification arise Unsought Goods.
Industrial Products
These are products which are used as input for manufacturing other products. Unlike consumer goods, these are not for direct consumption. These are meant for business and non-personal use. Some examples of industrial products are raw materials, machines, tools etc.
Types of industrial products is limited. Since they are not consumer goods the demand for them is not vast. The three broad categories of Industrial goods are as follows:
- Machine and Machine Parts: These goods are used entirely in the manufacturing process. These include raw materials like cotton, lumber, petroleum etc. They also include manufactured products like glass, rubber etc.
- Capital items: These are goods/products used to manufacture finished goods. They include installations (lifts, mainframe computers etc.) and equipment (hand tools, personal computers etc.)
- Business Services and Supplies: These are industrial goods and services that facilitate the manufacturing process. They include services such as painters, technicians, maintenance, and repairs. And products such as lubricants, stationary etic
Product Life Cycle
Product life cycle is a representation of the cycle through which each product goes through from introduction to decline and eventual demise of the product. The Product Life Cycle helps us recognize which stage the products are in. Accordingly, the company can adjust their marketing strategy to make most of the conditions.
Stages in Product Marketing
Introduction
As the name suggests this is the stage of introduction of the product to the market. At this stage, the demand for the product is only a proved demand and not effective demand. This stage is categorized by the following features
The product’s sale is at its lowest and is increasing but very slowly
During the introduction, the promotion expense is very high. Extensive promotions have to be undertaken to create awareness and demand for the product.
The products are put in limited outlets. The distribution is also kept limited to a few channels. The point is to try out the product before expanding distribution.
Growth Stage
This is the second stage of the product lifecycle. Now the sales begin to take off and the product becomes well known. Some other characteristics are
The promotion expenses still remain high. Now the focus will be on brand recognition and brand image. This helps the product maintain and extend its selective demand.
With a rise in sales, the profits also rise sharply
This is the stage where new competitors may enter the market with better research and better products. To keep up with their products, the company may make improvement and modifications to their products.
Maturity Stage
This is the stage where the market saturates and sales growth of the firm slow down and finally stabilizes at a stage.
Competition in the market will intensify in this stage. All competitors will want to maintain a production level to enjoy economies of scale
This stage may also see a price war in order to keep their market share. Reducing prices may affect the profit margin of the company.
Decline Stage
This the terminal stage of the products, they are no longer relevant in the market. So, the end of this stage is the eventual demise of the product in the market.
Conclusion
A product needs to be relevant: the users must have an immediate use for it. A product needs to be functionally able to do what it is supposed to, and do it with a good quality.
A product needs to be communicated: Users and potential users must know why they need to use it, what benefits they can derive from it, and what it does difference it does to their lives. Advertising and ‘brand building’ best do this.
READ: Market Structure