Defined conventionally, the product is a good or a service, offered on a market, to satisfy the needs and desires of consumers.
From marketing point of view, the product is a standard character amalgam and specific attributes. A bicycle is not only a product that allows to move; It differs by visible features such as its weight, material, color, equipment ... It is also a complex symbol where the lifestyle is found, dreams of one who buys it. The consumer also purchases services through this product: after-sales service, delivery...
The product is technically a tangible, transport and store; it is a promise by the company to meet market needs.
The product is the set of satisfactions that a buyer withdraws its consumption (Th Levitt.).
The product is a set of values it transmits to the consumer:
The product has a life cycle with the launch phases, growth, maturity and decline.
Generic name of the product: VCR, car ..., the minimum characteristics that make the product can be called car or VCR. Technical specifications or ID: performance components used, build quality, materials ..., all the essential information on the product.
Real signature, it brings together the underlying values held by the product and the company.
The name should be easily remembered and evocative image we want to give the product
The brand establishes communication with the customer and vehicle branding.
Containing product and retail unit packaging had essentially three functions: content protection, ease of use for the consumer and product recognition.
With the development of self-service sales and the loss of vendors, it became an element of communication between the product and the customer, a silent salesman who must encourage the purchase by the color, shape, the material used, graphic, style ... It is message carrier and is an advertising medium.
The product is often the founding of a company. Any business is created on the idea of a product or service. It develops and ensures its sustainability by recovering continuously creative spirit that had led to its origin.
A company can only exist insofar as it puts products (goods and services) on the market to meet the needs, expectations, and satisfaction of demand. In that same market can only exist if there are no products that meet a clearly defined need.
On the other hand, the service is an intangible product meeting a need, a desire...
It comes in the form of business, profits or satisfactions offered at the time of sale or in connection with the sale of goods. A service is any activity or benefit that a party may offer the other, which is essentially intangible and does not result in any transfer of ownership. Its production can sometimes be related to a physical product. The service is characterized by a series of activities to overcome the difficulties encountered by customers. These activities result in a transaction between the client and the personal or corporate hardware support. It is an act or performance offered by one party to another. Services are economic activities that create value and deliver benefits to consumers at times and specific locations and as a result of a change of desire Christopher Lovelock.
The service has a tangible goal: visible intangible physical result and intangible Result.
We can cite three major forms of service:
Characteristics and Specifications of the service:
The service fills a need, as the product. In fact, a service can be challenged by product examples: The garage chain maintenance services face competition from a physical GMS offers: motor oil, drain equipment.
The difference between products and services is appreciated more about the characteristics of the service (intangibility, inseparability, variability, non-storable) .But the product (physical good) and the service (intangible) are all both complementary in the sense that the service (benefits related to the operation of a product by the customer) can be associated with a sale of property.
When it comes to the 14 Ps in marketing, the company should take into consideration the following:
Who is the fright’s company customer? With marketing the answer always lies with the customer. The company can help itself define this with real clarity.
This is one of the core ideas of marketing. Marketing should always be directed to a specific group of people. Specific doesn’t necessarily mean a small group, but a clearly defined group. Unless you understand who buy from you, you can’t target them with your marketing. Create buyer personas for each different buyer type. You can then target your marketing straight to them. For example, if you want to target the university students for spreading the idea of the importance to have a Credit Card for a specific bank, then the bank should target the points of interest of this age group (18-24). The bank can uses Facebook, inside nightclubs, and in entertainment centers such as Cosmos Entertainment City in downtown.
What business the company is in? Customers don’t buy what the company produces; they buy what it does for them. Understanding this helps find the most profitable market opportunities. For example, if you are the Malak-e watch producer and the partner of Alfa telecommunication company in Lebanon, the clients are not buying this watch because you are the producer and not for anything else than, how you market the product for being helpful for them to keep in contact with their kids, know their exact location, know if the watch fell from their hand, or if they changed their location.
From another perspective. Why do people do charity work? They do it because of the purpose the work gives them. They feel they’re a part of something bigger than themselves. But giving purpose isn’t reserved for charities. You can easily market an ecological product with the feeling of purpose, This book is printed on recycled paper that saves natural resources. You could just as easily use ethical or political reasons.
Why should they buy from a company? No matter how clever a company’s technology, there is always an alternative. Defining why customers should choose the company’s solution is critical to great marketing. Concentrate has the process to uncover this.
For example, when Hyundai in Lebanon defined that it will give customers 1500$ cash back, in addition to 100,000 Km free warranty; now the clients know why they will choose Hyundai in addition to knowing that it fuel efficiency and their good after sales customer service.
What marketing understanding does a company have? Concentrate helps the company to find the most attractive markets for their business. They must Learn to identify which markets are best suited to their products and in which markets they have the most likelihood of success.
For example, a lingerie that wants to spread their brand image cannot choose religiousity locations such as Beirut Suberb or Nabatieh (with no offense) to market their women sexy underwear.
What is the product? It is critical that the company’s products ‘fit’ into the world of the potential customers. Concentrate can help the company understand the customers’ world and how to make the company’s product easier for the customers to buy and use.
The product is yet another one of the basic four P’s of marketing. A great product is much easier to market for several reasons. There are more good things to market. It will create word of mouth marketing. It will exceed customers’ expectations. And so on. For example, we all know that milk is good for children, and our generation was raised on NIDO; thus NIDO won’t find it difficult to spread their product since their product is good and has a good image in the minds of most of the Lebanese people.
A charismatic figure is a good marketing trick. Steve Jobs with his presentations sold more Macs than the Apple marketing department. People want to be lead. A trustworthy leader is more than social proof. People intuitively believe a leader to have a positive vision for the future. And they want to follow the leader to that vision.
Who are the company’s targets? Having established the best overall market, Concentrate shows the company how to uncover the segments to focus on. By identifying the areas with the most potential the company will target the company’s products to the right people.
For example, energy drinks are most targeting people in gymnasiums, sports clubs, and resorts; due to the assumption that people there are the most willing to buy and drink the energy drink.
Who could help the company? The right partnerships can help the company gain a larger market share. Concentrate assists to identify who they might be, and how to develop and maintain a successful relationship with them.
Partnerships are so powerful because it can manifest in so many ways. For example, in affiliate marketing, a vendor creates a product and markets the product through affiliates. So, there’s the partnership between vendor and affiliates. You can also have a partnership where two companies participate in a joint venture. And what about a partnership between a company and a spokesperson for its products. They all have one thing in common: to create a win-win situation for everyone involved.
Who is the competition? Typically the company is competing against bigger and better funded players in offshore markets, so they have to be smarter. Part of that is to understand how competitors are positioning their products, and how the company can be differentiated.
For example, when KIA car brand first launched in the Lebanese markets, they knew exactly who are they competing. In the late 90s most of the cars where BMW, Mercedes, or American brand. The KIA motors entered the Lebanese market due to the need for fuel efficient cars and unexpensive cars. This what made kia gain a high market share in no time in the Lebanese car market.
Developing a Strategy Given what the company know from the first eight Ps, how can the company locate their potential customers and develop an approach to secure them for the long-term.
The most important part of marketing is the research for it. Understanding your story, your customers, and the general situation takes time. And most people don’t spend enough time planning. You can spot a poorly planned marketing message instantly if you know what you’re looking for. It’s not clear on what it’s selling, it’s not directed to anybody in particular, it doesn’t catch your attention, and so on. Do your planning well, and you’re halfway ready for marketing.
For example, Chalet owners in Faraya and Kfardebian are capable of knowing when to market their chalets. Most of us know that they market their products in the ski season which starts in October.
How much will they pay? Freight company too often deliver products for suppliers and retailers price. Understanding the value the company delivers and then articulating it is critical to an effective pricing strategy.
Pricing is one of the basic four P’s of marketing. Understanding what people are willing to pay for your product is essential. Even if you nail every other P of marketing, the pricing can screw up the whole thing. A low price lessens the product’s perceived value. It can even lower the perceived value below what you’d expect from a free gift. But if your product is too expensive for your customers, they won’t buy it. When a customer is choosing between two products with near identical qualities, pricing becomes very important. And the cheaper one usually leaves the shelf.
For example, when a woman wants to buy a bag; she can either buy a fake bag from Deekwaneh for 50,000LL or go to Michael Kors and buy it for 500$. Since, for some ladies the fake and the original bag are almost the same then they would go for the fake since it is of lower price.
How will the company persuade them? Building awareness and understanding amongst the company’s target market shortens the sales cycles and increases the chances of achieving a price premium.
For example, for Mother Care (kids and children wear store chain in Lebanon) to attract more customers and increase its sales; then its seasonal promotion shoud be 70% discount on all items (where their cost is still less than their 30% selling price) for 1 week; instead of making a 50% sale for 1 month.
What processes and standards? The company must develop the right metrics and monitoring them regularly is crucial to an effective technology marketing program.
For example, developing a quality management process as related to evaluating, monitoring, and controlling all marketing campaigns. This shall help in comparing recent campaigns with previous ones, and to have a comparative figure with the company’s marketing campaign compared to its competitors.
What people does the company need? While establishing the right marketing strategy is crucial, Concentrate assists the company to develop the right internal and external people the company needs. Identify the right people, skills and processes to execute the company’s new marketing plans with precision.
For example, Lena’s Café cannot must not hire marketing people that are unaware of the Lebanese mentality, culture, and traditions; this would be better and for the sake of the company and it’s profitability.