Eleanor Finch
The first of the four Ps of marketing is product, which includes both goods and services designed to meet consumer demands. The product is what the company sells to the consumer. It can be a tangible product such as a car, smartphone, or clothing, or an intangible offering such as banking services, healthcare, or education. The product is what you make available to the consumer and is responsible for satisfying customer needs. The other three Ps of marketing are price, place, and promotion.
| Characteristics | Values |
|---|---|
| First of the four Ps | Product |
| What it includes | Both goods and services |
| Purpose | Satisfy customer needs and wants |
| Tangibility | Tangible (e.g. clothing) and intangible (e.g. services) |
| Uniqueness | Fills a void in the marketplace or offers a unique experience |
| Pricing | Based on competition, demand, production costs, and consumer spending habits |
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What You'll Learn
- Product includes both goods and services that meet consumer demands
- Product market positioning is key to overcoming consumer prejudice
- Intangible services must be marketed differently from physical goods
- Services are inseparable from the provider and variable in quality
- A successful product fills a void in the marketplace
Product includes both goods and services that meet consumer demands
The first "P" of the four Ps of marketing is product, which includes both goods and services that meet consumer demands. The four Ps, popularized by Neil Borden in the 1950s, are the essential factors involved in marketing a product or service to the public. They are still widely used today by marketers and companies to advertise their offerings.
Products can be tangible, such as physical goods like cars, smartphones, and clothing, or intangible, such as services like banking, healthcare, and education. Services possess unique characteristics compared to physical goods, such as intangibility, perishability, inseparability from the provider, and variability in quality. Therefore, marketing strategies for services must focus on delivering quality experiences and building strong customer relationships.
When determining the product, companies should consider their strengths and core identity. For example, McDonald's is known for providing consistent fast food in a casual setting, so any new products would likely align with this identity. The product should also fulfill an existing consumer demand and offer something unique or special that sets it apart from the competition. For instance, Apple's iPhone was the first touchscreen smartphone with advanced features beyond simply making phone calls.
Understanding consumer demand is crucial for businesses when making decisions about inventory, pricing, and profitability. Demand refers to consumers' willingness to purchase goods and services at given prices and can be influenced by factors such as price, income, quality, advertising, and consumer expectations. Businesses study demand to price their products appropriately, generate profits, and meet consumer needs.
By focusing on creating products that meet consumer demands, companies can develop effective marketing strategies, make informed business decisions, and ultimately succeed in the marketplace.
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Product market positioning is key to overcoming consumer prejudice
Product market positioning is a strategic exercise that establishes the image of a brand or product in a consumer's mind. It is key to overcoming consumer prejudice as it helps influence how a particular market segment perceives a brand, good, or service in comparison to the competition.
Positioning is about acquiring space in the mind of the consumer, and it is facilitated by perceptual mapping to determine the ideal points of consumers. It helps marketers understand if positioning should be functional, symbolic, or experiential. For example, two people are interested in buying a car; one wants a stylish and powerful car, while the other wants a safe and reliable car. They end up buying the same car, which exemplifies functional positioning for one buyer and symbolic and/or experiential positioning for the other.
The product is the first of the four Ps of marketing, which also include price, place, and promotion. The product refers to what a company sells, which can be a tangible product or an intangible service. Services possess unique characteristics compared to physical goods, such as intangibility, perishability, inseparability from the provider, and variable quality. Therefore, marketing strategies for services must focus on delivering quality experiences and building strong customer relationships.
To overcome consumer prejudice, product positioning can be used to influence what a consumer thinks of a product or brand. It involves associating the product with specific benefits that interest members of the target market. For instance, promoting a drink as refreshing and showing people consuming it after working hard. Effective positioning uses product features to meet the target market's needs. It can also be used to address consumer prejudice by targeting specific consumer groups. For example, promoting a product by showing it being used on specific occasions or at particular locations positions it effectively for certain consumer groups.
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Intangible services must be marketed differently from physical goods
The concept of "product" in marketing includes both tangible and intangible offerings. Tangible products are physical goods that consumers can touch, see, taste, or feel before making a purchase decision. Examples include cars, smartphones, and clothing. On the other hand, intangible products, such as services or digital goods, lack a physical presence. Examples of intangible products include banking services, healthcare, consulting, and education.
When marketing intangible services, it is essential to build trust and credibility with potential customers. Since there is nothing tangible for customers to examine, they rely on the organization's integrity and promise to provide the expected service. A company's credibility is built over time through positive interactions and customer loyalty.
To effectively market intangible services, businesses should focus on personalized selling and addressing the target audience's needs. Explaining how the service can positively impact the customer's life and showcasing tangible benefits post-usage are effective strategies. Using storytelling to connect with consumers on an emotional level and highlight the value and benefits of the service can also be powerful.
Additionally, demonstrating how the intangible service works through videos, audio files, or pictures can help potential customers understand its value. This is especially important as customers may fear investing in intangibles due to a lack of understanding. By following these strategies, businesses can successfully market intangible services and differentiate themselves from competitors.
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Services are inseparable from the provider and variable in quality
Services are often intangible, perishable, inseparable from the provider, and variable in quality. Marketing strategies for services must address these distinctive features and focus on delivering quality experiences and building strong customer relationships.
Inseparability in the context of a service means that there is a provider-client interaction involved as the provider is part of the service. Services are typically produced and consumed simultaneously. Both the provider and the client are a part of the service. For example, pest control, surgery, car repairing, and tax services require the client to be present to conduct the service.
The quality of a service depends on who provides it, when and where it is provided, and to whom it is provided. Services are highly variable because they depend on these factors. Service buyers are aware of this variability and often talk to others before selecting a service provider.
The inseparability of services can pose a challenge for companies that want to digitalize their service processes. Digitalization involves transforming service delivery from a physical to a digital form or enhancing it with digital technologies. Research has shown that it may be more difficult to digitalize service processes due to their inseparability. This is because service production and its use by a customer need to occur simultaneously.
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A successful product fills a void in the marketplace
The concept of "product" in marketing refers to anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. This includes tangible products such as cars, smartphones, and clothing, as well as intangible offerings like banking services, healthcare, and education. A successful product fills a void in the marketplace by fulfilling an existing consumer demand.
When considering services within the realm of "product", it is important to recognize that services possess unique characteristics compared to physical goods. Services are often intangible, perishable, inseparable from the provider, and variable in quality. Therefore, marketing strategies for services must address these distinctive features and focus on delivering quality experiences and building strong customer relationships.
To create a successful product, it is important to identify what sets it apart from other similar products in the market and how it can win over customers. For example, Apple was the first company to sell a touchscreen smartphone with capabilities beyond just making phone calls. Many successful products and services are the first in their category, filling a void in the marketplace.
When introducing a product or service to the public, marketers often refer to the four Ps of marketing: product, price, place, and promotion. This framework has been used since the 1950s when it was popularized by Neil Borden, an advertising professor at Harvard University. The four Ps provide a guide for companies to successfully market their goods and services.
By focusing on these four key factors, companies can develop effective marketing strategies. Product refers to what the company sells, price is the cost of the product or service, place relates to where the product or service will be sold, and promotion involves choosing the best method to promote the product or service to reach the target audience.
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Frequently asked questions
The 4 Ps of marketing are product, price, place and promotion.
The first P of marketing is product. This refers to the goods and services that are designed to meet consumer demands and satisfy customer needs.
'Product' in marketing refers to anything that can be offered to the market for attention, acquisition, use or consumption that might satisfy a want or need. This includes both tangible products such as cars, smartphones and clothing, as well as intangible services like banking, healthcare and education.
The other 3 Ps in marketing are price, place and promotion. Price refers to the cost of the product or service. Place refers to the location where the product can be purchased. Promotion refers to the advertising of the product or service to reach the target market.
In addition to the 4 Ps, there are 3 more Ps that expand the marketing mix for the 21st century: people, process and physical evidence.
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