What is Product Analysis? Definition of Product Analysis, Product Analysis Meaning and Concept
Product analysis refers to the detailed study carried out on a product. This helps to better understand its characteristics, its operation and its behavior within the market.
It is important to note that the product analysis process allows an in-depth study of all the aspects of an object that are of interest. In this case the analysis is done on the product. A product is any good or service produced by a company in order to meet a consumer need.
Of course, in order to carry out the analysis of the product, the variables that are of interest in the study process are delimited. Then a comprehensive review of each of the aspects of interest is carried out.
What types of analysis can be done on a product?
Of course, when conducting a product analysis there are many elements that can be examined. Product analysis can be from a technology and marketing point of view.
From a technological point of view, product analysis can be from the following aspects:
To begin with, morphological analysis is the study that focuses your attention on the shape of the product under examination. It is based on the description of the product by means of observation. For this you need to have a graphic or an object that represents the product.
Therefore, diagrams, models and plans can be used that allow by means of observation to describe the product under study. It will be possible to know all its external characteristics such as shapes, contours, colors, textures, among some of the most important.
Then, when speaking of structural analysis, we refer to the study of all the elements that are interrelated with the product. This in order to know what it has been designed and built for.
To do this, each element is studied separately and evaluated as they are related. By doing so, a product can be assembled or disassembled. In order to identify each part and its connections so that the product can fulfill its function.
While functional analysis seeks to explain how it works. Function is the way in which the product fulfills the purpose for which it was conceived, designed and produced. All products have the function of satisfying the needs of the consumer. For this reason, it allows determining what a product is or is used for.
For its part, the performance analysis seeks to give an explanation of how the product works. In other words, what is the way to operate the product, its cost of operation and the performance it has.
Likewise, technological analysis involves studying the technology that should be used for design and manufacturing. It refers to being able to find the techniques, procedures, machines, tools and material that are needed to be able to manufacture it.
In addition, to manufacture any product it will be necessary to use specialized knowledge, techniques, machines and materials. In all this, the cost involved and the availability of each resource must be analyzed.
Now, economic analysis implies doing a study on production costs. Among the most important costs should be considered raw materials, labor, packaging, transportation and distribution.
As a consequence, it seeks to make the cost benefit relationship between what is spent in its production process and the expected sale price in the market.
Certainly, this analysis compares the similarities and differences that the studied product has with other competing products. The comparison could be made taking as a reference the function, operation, structure, form and technology used in its elaboration. This will help determine which differences are significant from the others.
Naturally, as the name suggests, relational analysis assesses and examines the connections that the product has with the environment. It could be said that any product will have a positive or negative impact on work, the environment, society and the economy. Products can affect all areas of human activity such as medicine, architecture, art, communications, among some that can be mentioned.
Basically the process of origin and evolution that the product has followed is analyzed. From the moment it entered the market, how it has evolved, its period of greatest recognition and its obsolescence process.
In other words, by doing this analysis you can make a projection towards the future of the product. This, in order to know what its current state is and how it should adapt to the changes that occur over time.
From a marketing point of view, product analysis focuses on studying the product portfolio. This allows to determine how each product is according to the stage of the life cycle and its participation in the market.
Four types of products can be found.
1. Unknown product
In the first place, the unknown product is the one that is in its introduction phase in the market. It is called unknown because it is not known if it remains on the market or disappears.
However, the unknown products that remain on the market present low levels of participation, but with a high level of growth. They need a lot of investment to stay in the market and generate almost no income.
2. Star product
Second, there are the star products and they are those that are in the growth phase. For this reason they have high levels of both growth and market share. These products generate quite a lot of income because sales increase in this phase. But, at the same time, they require a lot of investment to consolidate their position in the market.
3. Dairy cow product
For their part, dairy cow products are already in the maturation phase. In this case, they have a high level of market share, but low growth. Dairy cow products are the ones that give the most profitability to companies. Since they no longer need investment to maintain their market position. In addition, they generate a lot of sales income due to their high market share.
4. Dead dog product
Finally, so-called dead dog products are reaching the decline phase. In other words, they are already going to leave the market. Therefore, they present low levels of growth and market share.
Undoubtedly, companies no longer invest in them, because they want them to leave the market. However, these products generate sales revenue because the latest product balances are sold.
To finish, we can indicate that the analysis of the product both at a technological and marketing level is very important for every company. Since it allows to have a detailed knowledge of its main characteristics, its operation and its position within the market.