A product The product is understood as everything, that it is possible to offer in the market for acquisition, use or consumption for the purpose of satisfaction of certain requirements. The product is everything, that can satisfy any requirements (physical subjects, services, people, the enterprises, kinds of activity, idea). As soon as to a product a quoted price and it has arrived on the market, it becomes the goods. Therefore the term "goods" is used on a level with the term "product". From the point of view of final application allocate three main types of a product: consumer goods, an industrial and technological production (the industrial goods) and services. Consumer goods the goods bought by end users for personal (family) consumption. On the basis of consumer habits of consumers consumer goods are classified on the goods of daily demand, the goods of a preliminary choice, the goods of special demand and the goods of passive demand. The goods of daily demand consumer goods and services which are bought usually often, without meditations, with the minimum comparison with other goods. The goods of daily demand can be classified in addition on the basic goods, the goods of impulsive purchase and the emergency goods. The basic goods the goods bought by consumers regularly, for example a tooth-paste. The goods of impulsive purchase the goods accessible to purchase in many places and got without preliminary planning and searches on the basis of suddenly arisen desire. For example, a chewing elastic band, sweets which can be bought from cash desk at payment of purchases. The emergency goods the goods got at occurrence of sharp need in them, for example the umbrella bought during a downpour.
The goods of a preliminary choice consumer goods which the buyer in the course of a choice and purchases compares among themselves on indicators of suitability, the price, quality and external registration. The goods of special demand consumer goods with unique characteristics or stamps for the sake of which considerable groups of buyers are ready to spend additional efforts. For example, cars of special stamps, a special videocamera. The goods of passive demand consumer goods of which acquisition the buyer usually does not think, irrespective of, or not he knows about their existence, for example life insurance, the goods-novelties. Realisation of the goods of passive demand demands considerable marketing efforts. Consumer goods, are besides, classified on the goods of short-term using and on the goods of long using. The goods of short-term using consumer goods which are usually consumed for one or several cycles of use, for example beer, soap, salt. The goods of long using consumer goods which are usually used during enough long time, maintaining repeated application, for example refrigerators, cars, furniture. The goods of technological purpose the goods got by private persons and the organisations for their further processing or application in business. They are classified on three groups: materials and the details completely used in manufacture; the capital equipment entering into a ready product partially, both auxiliary materials and the services which are not entering into the made product. The concept of a grocery line is narrowly connected with concept "product". Grocery line group of the products closely connected among themselves or owing to similarity of their functioning, or owing to sale to the same groups of consumers, or realisation through identical types of shops, or sales within the limits of the same range of the prices. The grocery line is called short if probably to increase profit by expansion of assortment of production of the given grocery line, and long if probably increase have arrived by assortment narrowing. Considering a product, it is necessary to remember, that the consumer gets not a product, and those blessings which this product can give it. Certainly, product characteristics its size, design, packing are very important, but, more likely, as means of granting to the consumer of the certain blessings. When consumers carry out purchase during the initial moment they are guided not by physical characteristics of a product, but those blessings which the given product possessing these characteristics can give them. For example, buyers of lubricants search not for a product consisting of certain components, and a product meeting certain requirements of greasing of the car. An ultimate goal of manufacturers of drills is not release of certain drills, and granting with their help of possibility to receive concrete apertures. It should be considered and in advertising activity to advertise follows not so much drill, how much those apertures which turn out as a result of its application. On are represented a product as that (its basic properties, the ekspluatatsionno-technical characteristics defining a main destination of a product) and its environment (that does product acquisition attractive to the consumer). 80 % of the resources allocated for a product are spent For working out and manufacture of a product with certain properties, accordingly 20 % of these resources are spent for creation of an environment of a product. The consumer choice on 80 % is predetermined by an environment of a product and only on 20 % its basic characteristics (it is supposed, that a product has the quality certificate).
One of elements of an environment of a product is its stamp. Stamp is a name, the term, a sign, a symbol, drawing or their combination, intended to identify a product and to differentiate it from a product of competitors. Stamp switches on a branded name, a branded sign and a trade mark in the structure. The branded name represents a part of the stamp in the form of letters, words and their combinations which can be said. The branded sign is a part of the stamp which is recognised, but not said. It represents a symbol, drawing, отличитель - colour or font registration. The trade mark is understood as the stamp or its part, protected legally, that allows to the seller the exclusive right to use a branded name or a branded sign. Depending on under what stamp the product is realised, there are two versions of the stamp the stamp of the manufacturer often also named by the national stamp, and the private stamp. Stamp of the manufacturer is the stamp created by the manufacturer or leased at other manufacturer. The private stamp is developed by wholesale or retail firms. The private stamp can sometimes be called as the intermediary stamp, the stamp of the distributor, the stamp of the dealer, the trade mark. (In the domestic standard literature the generalised term which is not distinguishing various kinds of stamps, the trade mark more often is used.) Very often consumers on the basis of the opinion on firm products form opinion on the given trade mark image of the stamp. Absence of the stamp on a product reduces its price for 1020 %. Stamp has the cost which is switched on in so-called « intangible actives» firms. For example, trade mark cost "Capital", by estimations of experts, makes 300 mln. dollars that is equaled approximately to 10 annual sales volumes of given production. The manufacturer marking the product, has at the order at least four strategy: to use individual stamps for each product; to use the uniform stamp for all products; to use various stamps for separate groups of products; to use the company-manufacturer stamp in a combination to stamps of separate products. Strategy of expansion of the stamp and multibranded strategy can be besides, used. Stamp expansion is a release of the new or modified product under successfully proved stamp. Multibranded strategy strategy when one seller develops two or more stamps in one grocery category. Each product lives in the market certain time. Sooner or later it is superseded from the market by another, more perfect. In this connection the concept of life cycle of a product (fig. 1.8) is entered. Product life cycle time from the moment of initial occurrence of a product in the market before the termination of its realisation in the given market. Life cycle is described by change of indicators of a sales volume and profit on time and consists of following stages: the beginning of sales (introduction on the market), growth, a maturity and recession. The introduction stage on the market is characterised by insignificant growth of a sales volume and can be unprofitable because of the big initial expenses for marketing, small volumes of release of a product and неосвоенности its manufactures. The stage of growth of a sales volume is characterised by fast growth of the sales volume, the caused recognition of a product from consumers, profitableness grows, the relative share of expenses for marketing, as a rule, falls, the prices are constant or slightly fall. On a maturity sales volume growth is slowed down and even starts to fall, as the product is already got by the majority of potential consumers, the competition amplifies, expenses for marketing usually increase, reduction of prices is possible, the profit is stabilised or decreases. At upgrade of a product and-or market segments probably prolongation of the given stage. Recession is shown in sharp decrease in a sales volume and profit. Product upgrade, reduction of prices, increase in expenses at marketing can prolong this stage only. The concept of life cycle is applicable to a class of a product (phone), to type of a product (radio telephone), to the concrete stamp of a product (a radio telephone of concrete firm). The given concept also is applicable to such phenomena, as style (clothes, furniture, in art, etc.) and a fashion. At different stages of life cycle various marketing strategy are used.
Sales volume And profit
The form of a curve of life cycle remains more or less identical to the majority of products. However in time and intensity of transition from one stage in another the big distinctions depending on specificity of a product and the market have extent. Transition from a stage to a stage occurs smoothly enough, therefore the marketing service should watch closely sales volume and profit changes to catch borders of stages and accordingly to make changes to the marketing program. It is especially important to catch a saturation stage, and more more recession as to hold in the market the product which has settled it is unprofitable, and in the prestigious plan it is simply harmful. Obviously, also it is necessary to choose the correct moment for an exit on the market with any new product. If demand for a similar product already falls, hardly it is necessary to begin commercial activity in the market. It is obvious, that when it is established, that the product already is on a maturity or saturation it is necessary to undertake efforts on working out of the new product going on replacement of a product, settled. By working out and carrying out of a commodity policy it is necessary to consider, that the same product in the different markets can be at various stages of life cycle. The majority of the companies sells various products. For each company it is desirable, that these products were at different stages of life cycle. When trade in one product already is carried out badly and practically does not bring profit, trade in another can go well, bringing the income and promoting company prosperity. In practice the majority of the companies trades in several products in the different markets. In this case often the concept «a grocery portfolio» which is understood as set of the products which are let out by the company is used. The grocery portfolio should be balanced and switch on the products which are at different stages of life cycle that provides continuity of industrial-marketing activity of the organisation, constant reception of profit, reduces risk of non receipt of the expected size of profit on realisation of the products which are at initial stages of life cycle.
