Product is one of the most important concepts in marketing. It is the reason why customers buy from a business and the source of value that a business provides. But what exactly is a product? And what are the components that make up a product?
In this article, we will explore the definition of product, the types of product, and the four key components of product strategy. We will also look at some examples of how product components can affect customer satisfaction and business success.
Contents
What is Product?
According to The Business Professor, product is any item or service sold to customers or clients. It can be a physical good, such as a car, a book, or a smartphone, or an intangible service, such as a haircut, a massage, or a consultation.
Products can also be classified into different types based on their characteristics and functions. Some common types of product are:
- Convenience products: These are products that customers buy frequently and with little effort, such as groceries, toiletries, and newspapers. They are usually low-priced and widely available.
- Shopping products: These are products that customers compare and evaluate before buying, such as clothing, furniture, and appliances. They are usually higher-priced and less available than convenience products.
- Specialty products: These are products that customers have a strong preference for and are willing to spend time and money to acquire, such as luxury cars, designer clothes, and rare collectibles. They are usually very high-priced and very limited in availability.
- Unsought products: These are products that customers do not actively seek or are unaware of, such as life insurance, funeral services, and new inventions. They are usually low-priced and require aggressive promotion to generate demand.
What are the Components of Product Strategy?
Product strategy is the vision behind a product. It is the planned steps and strategies to get your product into the maximum number of hands. It encompasses many moving parts and disparate resources that need to be aligned and coordinated.
According to Zight, some of the most important components of product strategy are:
- Customers: These are the people who buy your product or use your service. You need to know who they are, what they want, why they need your product, how they behave, and how they make decisions. You can use customer profiles, surveys, interviews, feedback, and analytics to understand your customers better.
- Value proposition: This is the benefit that your product provides to your customers and how it solves their problems or satisfies their needs. You need to communicate your value proposition clearly and convincingly to your customers and differentiate it from your competitors.
- Market: This is the environment where your product operates and competes. You need to know the size, growth, trends, opportunities, threats, and dynamics of your market. You also need to identify your competitors, their strengths, weaknesses, strategies, and market share.
- Goals: These are the specific, measurable, achievable, relevant, and time-bound objectives that you want to achieve with your product. You need to set goals that align with your vision, mission, values, and resources. You also need to track your progress and performance against your goals.
How Product Components Affect Customer Satisfaction and Business Success
The components of product strategy are not isolated or independent from each other. They are interrelated and interdependent. How you design and implement each component can have a significant impact on customer satisfaction and business success.
For example:
- If you do not understand your customers well enough, you may create a product that does not meet their needs or expectations. This can lead to low customer satisfaction, loyalty, retention, and referrals.
- If you do not communicate your value proposition effectively enough, you may fail to attract or persuade your customers to buy your product. This can lead to low customer awareness, interest, desire, and action.
- If you do not analyze your market thoroughly enough, you may face unexpected challenges or miss out on potential opportunities. This can lead to low customer acquisition, retention, growth, and profitability.
- If you do not set realistic and relevant goals for your product, you may waste time or resources on activities that do not contribute to your success. This can lead to low customer value creation, delivery, capture, and feedback.
Therefore, it is essential to pay attention to each component of product strategy and optimize them for maximum customer satisfaction and business success.
Conclusion
Product is related to components in many ways. Product is composed of various components that define its features and functions. Product strategy is composed of various components that define its vision and direction.
By understanding the components of product and product strategy better, you can create more valuable products for your customers and more successful products for your business.
I hope this article has helped you learn more about how product is related to components. If you have any questions or comments, please feel free to share them with me. Thank you for reading. 😊
