Product Decisions: Meaning, Concepts & Types

The marketing process involves making decisions related to many aspects like product decisions, price decisions, advertising decisions etc. Product decisions are related to decisions related to the product’s tangible and intangible aspects. In this article, we will discuss the product meaning characteristics and different types of product decisions

Product Decisions Overview

The product is the final product that the organisation manufactures to earn profit by selling it. In the era of cutthroat competition, it becomes necessary that the product should be designed and sold in a prudent manner in order to satisfy both the customers and the financial leaves of the organisation.

What is a Product?

A product can be defined as a collection of physical, service and symbolic attributes which yield satisfaction or benefits to a user or buyer.

According to W. Alderson, “A Product is a set of tangible and intangible attributes, including packaging, colour, price, manufacturer’s and retailer’s services, which the buyer may accept as offering the satisfaction of wants or needs.”

According to Philip Kotler, “a product can be offered to a market for attention, acquisition and consumption that might satisfy a need or want. It includes physical objects, services, persons, places, organisations and ideas.

Characteristics of Product

Some of the important characteristics of the product are given below:

• A product is a set of Tangible and intangible attributes
• Product includes colour, price, packaging and branding
• Product is a group of utilities
• The product is designed and presented to satisfy some specific consumer needs

What are Product Decisions?

Marketing mix describes how businesses use and manipulate the 4Ps to market their products. Businesses employ different strategies when marketing products compared to services. As a physical product, marketers need to make several decisions. These decisions are called product decisions. These include decisions related to packaging, labelling and branding involved in marketing the overall product

Type of Product Decisions

There are different decisions related to the product. These include four major decisions- Product Design Decisions, Production decisions, When and Where to Launch Decisions and Product Mix And Product Line.

Product Design Decisions

Product design decisions are related to the design of the products. The design of the product plays a very important role in the marketing process. If the design is as per the needs of the customers and compatible to be handled then this enhances the chances of a competitive advantage over the other teachers in the market.

Production Decisions

These decisions are related to the production aspect of the product. They involve decisions like what will be the manufacturing process of the product,  batch flow line what kind of technology to be used and product quality etc.

Product Line Decisions

Product line decisions refer to decisions relating to the addition or deletion of product(s) from existing product lines. These include decisions like

• Product line length decision: These decisions are related to the length of the product line. This involves decisions like adding a new product or eliminating and profitable product in the product line.
• Product line stretching decision: This decision is related to lengthening a firm’s product line beyond its current line by adding new products.
• Product line modernisation decision: A strategy in which items in a product line are modified to suit modern styling and tastes and re-launched
• Product line featuring decision: these decisions include highlighting specific products from the existing product line. Producers feature promotional models at the low end of the line to serve as “traffic builders.”

Product Mix Decisions

“A product mix (also called product assortment) is the set of all product lines and items that a particular seller offers for sale to buyers”.

According to AMA (American Marketing Association),” product mix is the composite of products offered for sale by a firm or a business unit”.

Concept of the Product Life Cycle

Products have a limited life. Product sales pass through distinct stages with different challenges, opportunities, and problems for the seller. Profits rise and fall at different stages of the product life cycle; and products require different marketing, financial, manufacturing, purchasing, and human resource strategies in each stage. These stages include the following stage

• Introduction: A period of slow sales growth as the product is introduced in the market. Profits are nonexistent at this stage because of the heavy expenses incurred with product introduction.
• Growth: A period of rapid market acceptance and substantial profit improvement.
• Maturity: A period of a slowdown in sales growth because the product has achieved acceptance by most potential buyers. Profits stabilize or decline because of increased competition.
• Decline: The period when sales show a downward drift and profits erode.

Conclusion

Hence, Product Decisions play a very important role in the marketing process. A marketer should have to understand the needs and desires of the customer and make decisions related to the product accordingly. A product decision that is taken prudently can help organizations to achieve competitive strength in the market.

Download UGC NET Commerce Study Notes PDF

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