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Marketing Basics - Kotler Philip

Summary

Product is the first and most important element of the marketing mix. Commodity policy requires the adoption of consistent decisions regarding individual commodity units, product mix and product nomenclature.

Each individual item offered to consumers can be viewed in terms of three levels. The product is intended to be the main service that the buyer actually purchases. A product in real execution is a product offered for sale with a certain set of properties, external design, quality level, brand name and packaging. Reinforced goods are goods in real execution, coupled with accompanying services, such as warranty, installation or installation, preventative maintenance and free delivery.

Several methods for classifying goods are proposed. For example, goods can be classified according to their inherent longevity (non-durable goods, durable goods and services). Consumer goods are usually classified on the basis of consumer spending habits (consumer goods, pre-selection goods, consumer goods and passive goods). Industrial goods are classified by their degree of participation in the production process (materials and parts, capital assets, auxiliary materials and services).

The firm must develop a commodity-brand policy, the provisions of which it will be guided in relation to the commodity units that are part of its product mix. She must decide whether to resort to the use of trademarks at all, whether to use the manufacturer’s brands or private labels, what qualities should be included in the branded product, whether to have collective brand names for product families or individual brand names, whether it is worth expanding the boundaries of the brand name, extending it to new products, is it advisable to offer several branded products that compete with each other.

Tangible goods require decisions about their packaging, which should ensure the protection of the goods, cost savings, ease of use of the goods and its promotion. In addition, tangible goods need a label that identifies the product, possibly indicates its grade, describes its properties and helps to stimulate its marketing. U.S. law requires sellers to have a minimum amount of information on the labels offered for sale that is designed to inform and protect consumers.

The firm must develop a range of services that consumers would like to have and which would be an effective tool in the fight against competitors. The company will have to decide what exactly the most important services should be offered, what should be the quality level of each of the services offered and in what forms these services will be offered. The provision of a range of services can be coordinated by the customer service department, which works with complaints and comments, deals with lending, logistics, maintenance and information intended for distribution to customers.

Most firms produce not just one product, but produce a specific product range. An assortment of goods is a group of goods that are similar in their functions, the nature of consumer needs for which they are bought, or the nature of their distribution channels. Each product range requires its own marketing strategy. The problem of increasing the product mix requires decision making as to whether it should be building up, down or in both directions. The problem of saturation of the assortment requires decisions on the feasibility of adding new products to its existing framework. The question of which particular products should represent the entire range in sales promotion events also needs to be addressed.

By commodity nomenclature is meant a combination of assortment groups of goods and commodity units offered to the buyer by a particular seller. Commodity nomenclature can be described in terms of its breadth, saturation, depth and harmony. These four parameters characterizing the commodity nomenclature are tools in the process of development by the firm of its commodity policy.