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Marketing Basics - Kotler Philip

What is a product?

A Wilson tennis racket, a Vidal Sesson haircut, a Rolling Stones concert, a medical student club voucher, a two-ton trellised truck, a Head ski, and a telephone help desk are all products. We define the product as follows:

A product is everything that can satisfy a need or need and is offered to the market in order to attract attention, purchase, use or consumption. It can be physical objects, services, persons, places, organizations and ideas.

At the same time, we should give a definition of a commodity unit:

A commodity unit is a separate integrity characterized by indicators of magnitude, price, appearance, and other attributes. For example, a toothpaste is a commodity, and a tube of Winter Fresh Gel paste from Colgate firm worth $ 1.29 is a commodity unit.

Designed goods, real-time goods, reinforced goods

When creating a product, the developer needs to perceive the idea at three levels. Fundamental is the level of the goods according to the plan, on which they give an answer to the question: what will the buyer actually acquire? After all, in essence, any product is a service enclosed in a package to solve a problem. A woman buying lipstick doesn’t just get lip color. And this has long been realized, say, by Charles Revson, the head of Revlon, Inc., who once said: “We make cosmetics in the factory. In the store we sell hope. ” Theodore Levitt noted that "procurement agents do not purchase drill bits of a quarter inch diameter, but holes of the same diameter." Well, an outstanding seller, Elmer Wheeler, would probably say this: "Sell not a steak, but its mouth-watering platter in a frying pan." The task of the market leader is to identify the needs hidden behind any product and to sell not the properties of this product, but the benefits from it. As can be seen from fig. 49, the product by design is the core of the concept of the product as a whole.

The developer will have to turn the product as intended into the product in real execution. Lipstick, computers, training seminars, and political party candidates are all real-life products. A product in real execution may have five characteristics: quality level, set of properties, specific design, brand name and specific packaging.

Three levels of goods

Fig. 49. Three levels of goods

And finally, the developer may envisage the provision of additional services and benefits, which together with reinforced goods. If you take the Avon company, then its reinforced product includes the manifestation of personal attention to the customer, home delivery, money back guarantee, etc. The success of the IBM Corporation can also be partly explained by the smart reinforcement of its real-life product - computers. While competitors were busy selling the properties of their products to customers, IBM realized that customers were interested not so much in the machines themselves as in solving their own problems. The consumer needed instructions, kits recorded on standard media of work programs, programming services, operational repairs, warranties, etc. In a word, the IBM corporation sold not just a computer, but a whole set2.

The idea of ​​reinforcing the product makes the marketer look at the customer’s current consumption system as a whole, “how the buyer of the product comprehensively approaches the problem that he is trying to solve through the use of the product3. With this approach, a market leader will reveal many opportunities to reinforce his product offer in the most effective way from the point of view of competition. According to Levitt,

Competition in a new way is not a competition among themselves of what is produced by firms in their plants and factories, but of what they additionally supplied their products with in the form of packaging, services, advertising, customer consultations, financing, delivery features, warehousing services and other things that people value 4.

The firm must constantly seek effective ways to reinforce its product offering.