Free Essay Describing the Product Concept in Marketing

A product is considered as something that can be marketed and sold to a customer since it generates some benefits as well as satisfying the needs of the customer who purchases it. A product can be categorized as either good or service or the combination of both. Many of the products undergo product development (Baxter, 1995). According to Davila et al., (2013), product development refers to the creation of the products with either a different or a new feature that provides additional or new benefits to the customer. The process of product modification can either entail adjustment of the existing products, packaging or presentation of a completely new product that fulfills a newly defined market niche the market desire.

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Generally, the product developments categories noted in this topic major into four main groups: new-to-the-company, the extension of a product line, improvement of existing product, as well as new-to-the-market. The examples of the different sub-groups are as follows:

New-to-the-market: it is known as the goods or services that are never available to either the manufacturers or consumers to the company, but the competitors have been previously selling it to the market. Examples include Polaroid camera, iPod and iPad,

The Polaroid camera, iPod and iPad, were initially invented and there was no any product compared to it. It is much risky to introduce a new product into the market, and therefore only 10% of them are categorized under this group. The key positive idea about this category of products is that it is profitable to the market since there is a temporary monopoly being enjoyed in that position (Davila et al., 2013).

New-to-the-company: Refers to the goods or services that are new to the company but has been recently sold by the competitors; example P&G's first shampoo. It might be considered to be the new product; however, they undergo some transformational process that includes some sorts of development (Davila et al., 2013). Eventually, a new product is created by the company is of no differences to that already are existing and sold by the competitors.

Improvement of the existing product: it is defined as the improvement of the products that already exist in the market. An example is P&G's Ivory Soap. The company performs some changes to the products that they are already sold on the market by the competitors and enhances the ingredients or making it more customized than those existing ones before producing them to the market (10.1 What Is a Product? | Exploring Business, 2018). The product might be the same as that sold by the competitor, but the taste might not be the same t the ones that have been in existence.

Extension of product line: refers to the new product development which is a variant of the earlier existing product (Davila et al., 2013). The example includes Jello-gelatin creating Jello pudding pops

Product that is being explored in this exercise is known as "Marshmallow Peeps," from a company referred to as Just Born, coincidently, the management of the company is firm interest in marshmallows. The product developed is being used for different ways, they are famous in the creation of the decoration during the Halloween and Christmas seasons (10.1 what is a Product? | Exploring Business, 2018). However, the product is identical to the ones produced by the competitors; the decorating kits are "new o the company" but not "new to the market."

On the other hand, as for the Mike & Ike, they use "Improvement of the existing product" and "Extension of product line" as a way of making their products. The company extended its Peep products line including "Peeps in a chocolate egg," which attracted many of the customers to the product.

References

10.1 What Is a Product? | Exploring Business. (2018). Retrieved from http://open.lib.umn.edu/exploringbusiness/chapter/10-1-what-is-a-product/

Baxter, M. (1995). Product design. CRC Press.

Davila, T., Epstein, M., Shelton, R., Cagan, J. M., & Vogel, C. M. (2013). How to become innovative. FT Press.