Total Product Concept on Market Leadership
Evaluate the theory of Total Product Concept for Market Leadership.
While the concept of the marketing plan is considered, Marketing mix is the popular phrase used everywhere. The terminology Marketing mix is a collection of a fairly organized process which consists of promotion, price, product, and place. In order to attain the projected target, an organization operates and manages these processes in a well-organized and controlled way (Kotler & Armstrong 2010). In the process of the marketing mix, various factors are being considered to do its advertising campaigns neglecting the expenditure occurred in it. The consumers who prefer the products of higher brands are not thinking of the price range and hence do not waver their selection because of any change in price. The total product concept is being discussed in this report focusing on its product components and distribution. In this report, diverse product layers are being analysed using several examples.
A fresh and novel arrangement was proposed by Kotler & Armstrong 2010. It described that marketing is a societal notion by virtue of which the products and services are being exchanged and traded in which a certain value is associated. This can similarly be described as the procedure which the highest quality for the consumers can be generated by the companies and hence retain a robust relation in order to deliver maximum quality to the customer. The concept of marketing has undergone a revolutionary change, because of which the organizations have focused more on delivering quality products to the customers and timely update and modification are done in order to suffice the needs of customer preferences.
According to AMA (2012), an innovative model for marketing has been suggested which proposed that in order to sustain and retain in a prolonged relationship with the customer, a system of value creation and distribution should be created.
To attain and uphold the objectives of the firm, a set of strategies i.e. Marketing objectives should be formulated. Marketing objectives are the targets to be achieved in a provided structure of the timeline. For attaining the aims of a company the management should focus on generating demand, the satisfaction of the customer, Value of the market share, profit generation and sustain the goodwill of the company in the operational market.
Out of the marketing objectives mentioned above relies on a significant concept of product which is the product itself. According to our previous discussion in this report till now we can come to an inference that the main concept of marketing is not about selling more products or making high profit, its main focus is on satisfying the needs and taste of the customer. According to one of the major researches performed by Boone and Kurtz in 2005 a manufactured good delivered by a company is defined as “A bundle of physical, service and symbolic attributes which are designed to satisfy a customer’s wants and needs”
If considered the context of Total Product, a product functions as a diverse source of satisfaction for the customer. The companies try to make changes in their product because there prevails a risk of the customer opting for another product. For instance, the paper was once looked upon as a commodity to write something, but the recent happenings in the environment like the increased use of plastic have increased the significance of plastic to another level, as a substitute of plastic in packing the products, etc.
The concept of the total product is divided into 3 ideas. They are:-
- The core product, which covers the benefits obtained and the key motive for buying it.
- Main Product, which is being bought by the customer.
- Augmented Product, which contains the chief product along with its accessory parts.
This report is being drafted in order to exhibit the three mega concepts listed above. We have discussed Total product concept, consideration of the product, layers of the product and the components of the product below. Although the concept and the scope of the Total Product Concept are very wide we have tried our best to elucidate the key ideas and concepts in Product layers, Product Components, and the new product development. It will be a very daunting task to deliver all the concepts which come under the total product concept.
Product layer concept: As from the perspective of the customer, a product is the main physical item. The whole concept of the total product is based on the proposed three layers of the product. If one wants to examine the characteristics of a product, he can go into it by reviewing these three layers which are, Core product, Actual product, and Augmented product.
If we contemplate the Core Product, the aforementioned is not a palpable one or touchable one. It is the benefits or advantages of the product which is being highlighted in this concept, because of that this concept is considered most treasured one among the customers (Baines, Fill & Page 2011). Taking the instance we mentioned earlier in this report, the benefits of employing paper in the packaging is its characteristics of being suitable for packing any material and its disposal after use. Being a sustainable and less polluting substance is another benefit of the paper.
Talking about Actual product, it is a substantial and physical product which is tangible and palpable. For instance, the paper bags used for packing substances can be perceived and touched.
The Augmented product eliminates the physical facet of the product. In this aspect, the additional value added to the product in order to enhance its quality is considered. Taking an instance, while buying a brand new vehicle, some accessories are provided as a value add to the customers. In this section of the product, many extra characteristics and attributes are added to the [product in order to satisfy the need of the customer.
Product Components: While categorizing and grouping the products, the characteristics of consumers should be taken into account. This criteria for product classification is very important since the product need to be augmented according to the need and convenience of the consumer (Bearden 2005). The various elements and components of the products should be studied in detail since there are only a minimal number of elements whose alteration will result in further advantage to the consumer.
As discussed above the elements of a product are very important in the perspective of the market since it needed to be changed according to the need of a consumer. If taken an instance, If a person buys a chopping blade in which the blades are not removable then there is a strong possibility for another chopping blade whose blade can be adjusted and replaced. Customers always look for the convenience and ease of handling. In this case, the company should introduce an augmented product by altering some of its components in order to retain the customers and retain in the market. The customer should be given more access to the product.
If the development of the total product concept is considered, to recognize the benefits provided by the product to the customer's detailed research should be conducted by the company.
New Product Development: Formerly the outcome gets finalized by the company; the experienced researchers of the organization implement the procedure of New Product Development. In this procedure, the preference of consumers and the benefits received by them is analyzed. The process of New Product Development is also implemented when consumers are expecting various benefits from the products at diverse condition (Dibb, Simkin, Pride & Ferrell 2012). Before the implementation of the process of New Product Development various dimensions of elements of the products at different levels like core, main and augmented level should be analyzed.
This approach had made significant progress in the field of innovation in products, as the new results obtained from the process of New Product Development actually gets more acceptable to the customer rather than the previous one. By this methodology, many companies were able to invent a new product which provided more benefits to the customers.
Classification of the product lines
Below are given different categories of product lines.
- Packaging Convenience: Among different strategies to attract the customers in the targeted market, the packaging plays a significant role. A new trend is being followed in the market by the customers to select a product having an effective and fresh way of packaging. The company management and managers should also consider the leniency and convenience in transporting the product in a new package.
- Specialty offers: For the customers who are loyal to a single brand, an alternative choice is not a significant option. Since they have trust in the benefits of the particular brand and were the beneficiary for a long time, it is hard for another company to attract these customers. For instance, if a customer is planning to buy a new car and had good experience in using his old car, the major chances are that he will buy the car of the same brand instead of a different brand which is unfamiliar for him.
- Post Sales Experience: The post sales experience is one of the most significant and driving factors of the market in the existing time. The major blunder done by company management is that the strategies are only made to somehow attract the customers and sell maximum products. The company should focus on increasing the sales performance of the product. If the product doesn’t perform well after the sales then it will affect the goodwill of the product and make a bad impact on its brand value.
- Product Production: The materials or factors which may affect the process of production like machinery, raw materials, and other resources come under this category. The availability and quality of these factors will affect the production of the product.
- Support Products: This is category consists of some major and minor products like periodical services, B2B services, accessories, etc.
Product Life Cycle: This term refers to the expiring period or the biological life of the product introduced by a company. Because of the changing preferences of the consumers, the trend in the market keeps on varying. The change in the trend also changes because of the variation in the product, since most of the consumers prefer to buy a cheaper alternative. Since the consumers opt for other products the inclusive of the companies get affected and the company management are thus coerced to adapt some cost-cutting measures in their process which will eventually end up in the drop of quality.
If considered another facet for the development of the market, the companies should conduct strict scrutiny and analysis of their marketing model and concept of the product. For assessing the product, the aforesaid three levels of products can be utilized. The products can be tested and classified by using various tools of analysis. Testing the product from the viewpoint of customers and their preference is the best way to analyze a product. When elements of the product are being evaluated from the viewpoint of the customers, there is a great scope for innovation in the product.
Elements of a Product Mix
If may sorts of products are being marketed by a company then that is called product mix.
Product Items- Various kind of products being offered by the company.
The product line- Categorization of the products
Product Mix- a huge set of outcomes being marketed by a sole company.
Various components of the product mix are being analyzed using the profoundness and reach of the product which is aligned in a single product line. In this group, there is less competition among the participants in the market since they have various sections of consumers, massive support from the merchants, and diverse range of prices for diverse products which will allow them an option in introducing a costlier product.
When the reach of the product is analyzed, it covers the total product line delivered by a company which gives vast power for a company in introducing new and better products. The company can incorporate new features in the updated product by assimilating the requirements of the customers. This will ensure that various customers will find satisfaction in a single product.
Conclusion In the present scenario of globalization, the majority of the companies all-round the world are competing to grab every opportunity and focusing on enhancing their sales under the brand of the company. As per the analysis is done in this report it is recommended that a better perception of the happenings and competition should be acquired by the management of a company by which they should manipulate and adjust the product mix by keeping in mind the preferences and needs of the consumer (Reimer & Kuehn 2005). The company should devise a new product line which portrays the innovation by the research team of the company. If the companies adopt these strategies then they will be able to face any competition in the competitive market. Marketing Plan assignments are being prepared by our online marketing assignment help experts from top universities which let us to provide you a reliable assignment help online service.
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