The largest integration groups in the world. The main integration groups of the world
Contents of the “product” category in marketing
Problems The concepts of “product”, “goods”, “service” are widely used and are key in marketing. Currently, a problem has arisen related to the deprivation of the previous unambiguity and specificity of the category “product”, which is associated with the transition from a planned economy to a market economy, from political economy to economics, from the law of value to the laws of supply and demand.
It is required to establish the correspondence between the concepts of product and commodity for use in a market economy.
The problem of definitions is complicated by the practice of translation, when a not entirely accurate translation is given. Thus, in most cases in translated literature the first element of the marketing mix is called “product”. In English-language literature, the first element of the marketing mix is called product. In the English-Russian dictionary, product is not translated as goods and has the following meanings: product, product, product, result, which does not necessarily mean intended for sale. The product translated into English is goods or article.
Review of the use of terminology in literature In accordance with political economy, which is important to keep in mind for the Russian reader, “commodity” is a product of labor produced for exchange through purchase and sale. A generally accepted feature of the traditional interpretation of the understanding of goods for the domestic economy is its focus on the exchange of material objects for money, which means narrowness in relation to the theory of marketing. At the same time, all marketing publications emphasize not so much the ability of a product to be exchanged for money, but rather the ability to use and consume it.
In accordance with one of the first translated publications on marketing: “A product is a means with which you can satisfy
Chapter Concept of product and its classification
Decisions on product appearance and assortment
Brand, service and packaging solutions
Positioning as the basis for the formation of product policy
Chapter 4: Product Management
satisfy a certain need." Another publication by the same author says that a product includes everything that can satisfy a need and is offered to the market with the aim of attracting attention, acquisition, use or consumption. IN this definition the most important is consumption, which does not necessarily result from acquisition. The same characteristic is attributed to the product in one of the domestic marketing publications:
a product is a complex multidimensional concept, including a set of many properties, the main ones being consumer properties, i.e. the ability of a product to satisfy the needs of the person who owns it.
As for understanding the product, according to application experience this term in marketing, it is understood more broadly than a product and is not always material. In accordance with :
product - a specific physical unit or process, a distinguishable set of features, mentally perceived and associated with the expectation of benefit.
The following definition of a product should be recognized as laconic and at the same time complete: “The product is the satisfaction of a need offered by a firm” (The need-satisfying offering of a firm).
It can also be noted that in addition to the product category, marketing literature sometimes uses the concept of “marketing object,” which is similar in content. Marketing objects also include ideas and not only them. The use of this category is sometimes useful in the sense that the concept of a marketing object is broader than a traditional product in the sense that the marketing object can be located outside the enterprise. This, for example, applies to politicians, artists, territories.
Generalizing the understanding of product and product as marketing categories
As a result of the above quotes and brief analysis we can come to the conclusion that in marketing the most general concept is “product”, in the sense that goods and services should be considered varieties of a product.
A product is a means of satisfying needs that is produced for external consumption.
The idea of a product as a material object has been assigned, therefore a product should be understood as any material product that is produced and offered for external consumption. The formal justification for using the term “product” as more general concept in relation to the product is also
78 Part P. Management at the instrumental level
Product Service Other products
Rice. 4.1. Product varieties
Examples of product diversity Traditionally, marketing has been focused on a tangible product - a product. Having analyzed the markets for marketing application, F. Kotler gives the following sequence of marketing objects:
Packaged consumer goods;
Consumer durables;
Industrial equipment;
It is noted that banks, brokerage and insurance firms, investment companies there is a long way to go
a combination of goods and services often found in English-language marketing literature. At the same time, the main meanings for goods are goods, things, property.
A service is a type of product, a useful action, offered for external consumption. The result of providing a service is either a tangible product or beneficial effect. From the literature we know the division of services into tangible and intangible. Some features of the services:
Impossibility of storage;
The inseparability of the provision of an intangible service from its production;
Direct sales channel without intermediaries;
Non-transportability.
Another confirmation of the applied product classification should be noted. IN international system In national accounts, goods and services are considered at the same classification level. In the methodological explanations of the official statistical publication - the Russian Statistical Yearbook, it is noted that the output of goods and services represents the total cost of goods and services. In the goods and services account, the term “product” is used, and in the “resources” section the following items are presented: import of goods and services, taxes on products.
The above can be illustrated somewhat simplified using Fig. 4.1.
Chapter 4: Product Management
research and development of marketing. Currently, due to the low financial capabilities of Russian industrial enterprises The most widespread and conscious use of marketing is carried out by enterprises financial sector- banks and insurance companies in the market for relevant services.
There is a concept of an educational product. The term “television product” is increasingly used. This is one of the varieties of the product, which, naturally, is intended for external consumption.
Political marketing is being intensively formed before our eyes. A new direction has emerged - individual marketing or personal marketing - marketing activities undertaken to create, maintain or change public behavior towards specific individuals, for example, politicians, doctors, athletes, lawyers, who use personal marketing in order to increase their popularity and expand business
Currently, products are appearing that are difficult to clearly classify as goods or services. Thus, along with banking services, the term “banking product” is used. It is broader than a service and also includes some material object, for example a plastic card. IN retail trade It offers not only a product, but a complex of goods and services. The emphasis is shifting from goods to services, and that's it higher value acquires a service that is inseparable from the purchase of goods, and its level becomes decisive when the consumer chooses where to purchase the goods. Thus, all refrigerators of the same brand are the same, regardless of the place of sale, but the consumer chooses such product characteristics as the politeness and competence of the sellers, the possibility of fast delivery at a convenient time, and guarantees.
Aggregation and levels of product generalization In marketing, the concept of levels or dimensions of a product is used. Developing a classification based on these and other primary sources, it is advisable to distinguish between a mono- and an expanded product based on the degree of aggregation of the product. An extended product, OR a reinforced product, is a collective understanding of a product, including both a mono-product and additional mono-products, including maintenance services. Yes, for the computer additional products- these are programs, services, guarantees. Both mono- and extended products, in terms of the degree of generalization, can be at one of the following three levels - generalized, abstract and concrete product (Fig. 4.2).
Part II. Management at the instrumental level Product aggregation Levels of product generalization mono ADVANCED 1. Generalized The desire to have a high status The desire to look modern 2. Abstract Prestigious car Fashionable clothes for work 3. Specific A specific model of a Lexus car A specific model of a suit, tie... Fig. 4.2. Classification of a product by level and degree of its contamination
A generic product, or product by design, is a broad understanding of a product that matches the need being satisfied. A generic product is the broadest generalization of a product, focusing on consumer needs rather than product features. Thus, when buying shoes, one acquires a feeling of confidence, elegance, masculinity or femininity, youth, etc.
This idea is figuratively formulated in the following two broad famous sayings Theodora Levitt: “In the factory we make cosmetics, and in the stores we sell hope” and “One million quarter-inch drills were sold not because people wanted drills, but because they wanted holes.” You could even say that consumers need the opportunity to independently create comfort in their apartment and enjoy the results of their work. As a result of the acquisition expensive car Not just one, but several needs can be satisfied at the same time, for example:
Possibility of movement;
Comfort;
Saving time on repairs;
Improving your image;
Investment of funds;
The ability to influence a partner, since it is known that “the longer the limousine, the shorter the negotiations.”
An abstract product is a way to satisfy a need, expressed in the name of the product: camera, digital camera, Nikon digital camera, etc.
Specific product - the greatest specification of the product, lowest level hierarchical classification of the product, indicating the specific variety of the product and its exact specifications. Synonyms: actual product, product unit, article number
Chapter 4: Product Management
with its own alphanumeric designation, model. The literature notes that a product in actual execution has five characteristics: level of quality, set of properties, design, brand name, packaging. An example of a specific complex electrical product is the VAZ 21213 Niva car.
Levels of product development Three levels of development are known from the literature - by design, in actual execution, with reinforcement. This is one of the possible classifications of a product, based on the just discussed classification of the product according to the level and degree of its aggregation:
1. The main level is the level of the product by design, at which the answer to the question is given: what will the buyer actually purchase? The task of market figures is to identify the hidden needs of any product and sell not the properties of this product, but the benefits from it (“Sell not the steak, but its appetizing appearance in the frying pan”). It follows that the product by design is the core of the concept of the product as a whole. The concept of a product is a developed version of an idea, expressed in terms that are meaningful to the consumer. Verification of a plan involves testing it on a relevant group of target consumers, who are offered well-developed versions of all plans.
2. The developer has to turn the product as conceived into a product in real execution. F. Kotler notes that a product in actual execution may have five characteristics:
Level of quality;
A set of consumer properties;
Specific design;
Brand name;
Specific packaging.
3. Product with reinforcement - provision of additional services and benefits, for example:
Providing credit to the buyer;
Free shipping;
Installation or assembly;
Training of customer service personnel;
Post-warranty service;
Providing spare parts.
The idea of product reinforcement forces the entrepreneur to take a closer look at how the buyer of the product approaches the problem that he is trying to solve through the use of the product. The company must constantly search effective ways strengthening your product offering. It is believed that if the manufacturer of a toy has supplied it
Part P. Management at the instrumental level
instructions that are inaccessible to the understanding of the child (and sometimes even the parents), then this entrepreneur is not familiar with the constructive concept of a product with reinforcement
Product in marketing- this is a solution offered by a company to its consumer as a means of satisfying his needs (or a carrier of value for the consumer). Those. anything that can be offered on the market for purchase, use or consumption in order to satisfy the specific needs of potential customers.
In marketing, the term “product” is often mistakenly equated with the term “goods” - this is incorrect (see below). A product is a broader concept - it includes both the material object (product) itself and the intangible part - for example, sales services, warranty obligations... and even the main idea of the brand under which the product is released (see). Moreover, the term “product,” as well as the complete product management tools (or “product management”) can be used even in relation to the services themselves in the absence of tangible goods.
The definition of what a company's product is is up to the company itself. So the same product in different shapes(for example, fabric in rolls or lengths) can be considered the same product or different, depending on what needs and what consumers it should satisfy. If the same product (service) in some other form is aimed at another target audience, then most likely it will also require separate positioning and promotion for this audience - then it is advisable to treat it as a different product.
A clear definition of the company's product for the service sector is especially important, because the definition of the product determines how exactly the services should be provided and even the nature of the services themselves. For example, a hairdressing product can be both a created haircut and appearance client after giving him a new haircut (his feeling of being “stylish”, “fashionable”), or the reaction of others to the client with a new haircut (for example, attention of the opposite sex), or satisfied with polite service and a pleasant atmosphere (musical background, smells, communication with staff) client. Any of these options can be applied in practice - it all depends on which target audience the company chooses.
Other definitions of the term "product"
In modern Russian-language marketing, there is confusion in the use of the terms “product” and “goods”. This is largely due to the fact that in Russian these terms are often considered synonyms. However, the first term is more universal, since a product refers to everything that can be produced and sold (consumer goods, industrial products, services, patents, etc.). It should be noted that in English language In addition to the term “product”, there is a special term “goods”, meaning physically tangible products. In addition, when using these terms there is also an “aesthetic” aspect: we are used to saying “market consumer goods", "market conditions for a certain product", but the terms "banking product", "insurance product", "tourism product" sound better than "banking product", etc.
The relationship between the categories “product” and “commodity” was analyzed quite deeply in the works of K. Marx and F. Engels. They define a product as an item that is produced for one's own consumption - i.e. has use value. Goods, on the contrary, are produced for exchange. At any stage of the commodity distribution chain, its participants, including the buyer, if he is not the final consumer, buy and sell the product. And only the final consumer acquires not a commodity, but a product, that use value, value expressed in benefit, benefit, good, i.e. in the service he needs. But at the same time, the product is also a carrier of potential exchange value, a commodity. Thus, a metamorphosis can occur, the transformation “product - commodity - product...”. This understanding of the term “product” can often be found in the economic literature of the Soviet period.
Also quite often in Russian-language literature, a product is understood as the result of labor or production process(process of service provision).
Another possible interpretation of the term “product” in Russian-language marketing (often used in oral speech) - food products, i.e. food: edible items in the form of supplies or goods.
Secrets of mastery
Imagine a candidate comes to you for a vacant position. Judging by all the data indicated in his profile, he suits you perfectly. But how do you know if he will cope with the tasks assigned to him? Productivity interviews will help!
The productivity interview should take no more than 10-15 minutes.
Before conducting it, you should warn the candidate that it will take a little time. People usually prepare for long interviews, which is not always necessary at this stage.
The main purpose of such an interview is to determine how productive the candidate worked in previous jobs. It is advisable to check it at 2 - 3 places of work.
Questions to include in a productivity interview
1. Full Name
Well, everything is clear here - no comments required.
2. What position are you applying for?
We understand whether a person knows where he came and, most importantly, why?
3. Do you understand what your “product” is?
A product is the result of an employee’s activities over a certain period, the benefit that it brings to the company. For example, the product of a street cleaner is a clean street.
4. Whether you work? If yes, then where and in what position. If not, how long have you been out of work?
My advice is not to consider candidates who have not worked for more than 3 months without good reason. If the reason is valid, then we check whether it really exists (if we have the opportunity).
5. Why do you want to leave? Or why did you leave?
A good answer to this question: “At my last job I reached the ceiling and I want to grow, develop, I want to earn more.”
6. What is your product for this position?
Here the candidate must say what personal product he produced at work. As an example, for the head of the sales department, the product will be a fulfilled or exceeded sales plan.
7. How do you measure the results of your work?
The answer to this question depends on what position the candidate is being considered for.
8. What was your production volume per month?
For example, how much did the interviewee sell per month? Naturally, this refers to personal production volume.
9. Could you compare your performance with that of another company employee working in this area?(for example, with another sales manager)?
A good answer: “I was the leader of the group and made 50% of all sales.” Naturally, then this information needs to be verified.
10. What results are you proud of in life and at work?
It all also depends on what position the candidate is applying for.
11. To whom did you report on the work done?
At this stage we take contacts former leader to take recommendations.
The performance interview is a distillation of the questions that are worth asking and about which we can get a clearer picture the first time we touch base with a candidate.
This list of questions will give us an understanding of whether this candidate is worth considering further or not. Keep in mind that this interview should be quick and to the point, save your time!
I hope that this material will help you improve the quality of the employees you hire. If you are interested in any other topics related to hiring staff, write about it in the comments, and I will definitely write about them in future articles!
product goods exchange cost profit
Until recently, even in specialized literature In marketing, there was no distinctive interpretation of the concepts of “goods” and “product.” In other sources you can find ambiguous interpretations of these concepts.
There is a wide variety of definitions of the concepts “product” and “goods”. For example:
product - the result of activities or processes;
product - a specific result of material or spiritual production, possessing qualities that characterize its intended purpose and properties for the sake of which it is acquired and consumed;
product - a set of tangible and intangible properties (characteristics, functions, benefits and uses) designed to meet the needs of customers;
goods - any product of production and economic activity in material form, an object of purchase and sale, market relations between sellers and buyers;
commodity - a product of labor that has value and is distributed in society through exchange, purchase and sale;
So (trying to preserve the style of presentation of the mentioned works), a person who produces an object directly for his consumption creates a product, but not a commodity. To become a commodity, a product must not be produced as a direct means of subsistence for the consumer himself.
The product began to turn into a commodity with the advent private property already within the community, when the surplus products of labor began to be used for exchange. In our opinion, it can be considered that it was from this moment that people began to use the marketing (although this term was not used then) necessary for effective exchange.
Thus, the product being exchanged is a commodity. From this we can assume that a product is a broader concept, since the product of labor must additionally be endowed with market attributes to increase the efficiency of exchange. With the development of capitalist production, the commodity becomes a general form of product.
If the product is interesting and appears to the consumer in the form of use value, then the product, since it enters into the exchange process, is presented from two points of view: use value and exchange value or, if the latter is expressed in money, price. From here it is undoubtedly clear that a product is a broader concept in comparison with a product.
Thus, the essence of the product is expressed in its two sides: exchange and use values, which provide profit or other benefits to producers and other sellers. In turn, one of the sides of the product - use value, expressed in the form of benefits, benefits - ensures the satisfaction of the desires of the end consumer.
If for the manufacturer, participants in the distribution of goods, i.e. sellers, the focus of attention is both exchange and use value, and the latter is of interest to them only as the basis of exchange value, then for the consumer the focus is primarily use value as a value, as a service, and exchange value, price interests him only as a measure consumption values.
At any stage of the commodity distribution chain, its participants, including the buyer, if he is not the final consumer, buy and sell the product. And only the final consumer acquires not a commodity, but a product, that use value, value expressed in benefit, benefit, good, i.e. in the service he needs. But at the same time, the product is also a carrier of potential exchange value, a commodity. Thus, a metamorphosis, the transformation “product - commodity - product...” can occur.
The commodity can appear in the form of labor power itself, the temporary manifestation of which is labor itself, which as such can never be a commodity directly.