Abstract This chapter discusses the product as one of the most important elements in the marketing mix and examines visual representations that have been developed alongside the theory. Figures and graphs of new product development, product launches, product life cycle, and product diffusion and adaptation models are explored. A new perspective on product segmentation is discussed with newly developed visuals. Marketing services and its value elements are also considered along with relevant graphs.
Keywords Product launch • Penetration • Product life cycle • Product diffusion and adaptation • Segmentation and services
Product is the solution to consumers’ problems provided by marketers. Product can be categorized into three groups: physical products (goods), services, and ideas. Alternatively, they can be classified as tangibles (physical goods) and intangibles (services and ideas). Every marketing organization provides a mix of tangible and intangible product elements (e.g. Starbucks sells not only coffee but also an experience—cafe service and atmosphere). Thus, product can provide benefits beyond its psychical appearance or function. The product concept is essential to every marketing effort and all the other marketing-mix elements are shaped with product in mind.
© The Author(s) 2017
S.U. Kucuk, Visualizing Marketing,
A successful product results from the metamorphosis of a groundbreaking innovation. Every company is strategically dependent on innovations that have potential to change markets and consumer behaviors. Thus, developing a new product concept implies changing consumer habits. Changing behaviors is challenging, with its potential for adaptation hassle and increased uncertainty. The convenience and usefulness introduced by the innovation should be perceived by consumers as worth trying. In other words, the first priority of the innovation should be to fix consumers’ problems while enjoying a competitive advantage over available alternatives in the market.
Although exploring an innovation that has the potential to satisfy consumer needs in markets is one of a company’s major goals, this does not mean it should take any financial risk, so transforming a basic innovation into a marketable product requires major cost analysis. The cost of producing a product with various quality options can tie the company’s hands. Every marketing manager must keep in mind the balance between three major factors—innovation, cost, and quality—when developing and marketing a new product idea. A balanced relationship between these three elements is at the heart of a strategically well-structured product idea. If the company can achieve this balance, it may be able to develop and launch a successful product.