The phrase “product decision” in marketing describes the company’s intentional decisions—large or small—about its product. The 4Ps of marketing—Product, Pricing, Place, and Promotion—rank it first. These choices are made by organizations in an effort to achieve their goals and generate long-term profits. Product decisions must be made at several levels of marketing. These judgments generally address:
- New Product Development
- Modification or Elimination of existing ones
- Variants and Visual elements
- Product Mix and Line, etc.
Therefore, the action of warehousing does not fall under the purview of product decisions. This is due to the fact that its primary purpose is to store products for eventual sale and distribution.
The following variables influence product decisions:
- Growth
- Market-share
- Cash flow
- Profitability
Major Product Decisions
The following is a quick discussion of the significant product decisions, which are also categories of product decisions:
New Product Decision
A brand-new product combines aspects of novelty with unique features. It can have new characteristics or traits or be presented in a different way. Also, adding new products can lead to expansion, profitability, a bigger part of the market, and more.
Organizations must introduce new items in order to retain profitability and sales. Yet, since the items might not succeed, marketers must make wise selections about new products.
The product decisions could involve choosing between the original product, an improved product, a modified product, product development, product launch, etc.
Product Mix
It alludes to the broad range of goods that a business possesses. In other words, a company’s product mix can be defined as the entire number of products it sells.
The following four qualities influence product mix decisions:
- Length
- Width
- Depth
- Consistency
Regarding the product mix, marketers must make a number of choices. Growth, contraction, product differentiation, deepening, and alteration, among other things, may be included.
Product Line
This describes a number of items in the same class that are closely related to one another. They are marketed via the same distribution channel for different segments while being offered to the same clients and having the same qualities. Line Stretching and Line Filling are product choices pertaining to a product line.
Design
It conveys information about the product’s personality or appearance. Marketers must choose between the conventional design and the innovative design. Although altering the product’s design may be effective, it can also be dangerous. It’s possible that the consumer will have issues using the goods or won’t like the design.
Branding
One of the crucial choices made under product considerations is branding. It involves the product’s aesthetic and symbolic components. The brand name, trademark logo, brand marks, and other methods are used by marketers to identify the goods.
Packaging
The product’s exterior covering is known as the packaging. It promotes sales, provides product protection, and delivers information. and is not merely limited to the product’s safety. Packaging has changed over time as a marketing tool. Packaging is a tool used by marketers to redesign or reposition their products.
Among the packaging choices are:
- Size
- Design
- Innovation
- Aesthetics
- Convenience
- Material
- Environmental factors
Labeling
The packaging includes the label. It is written and includes all the pertinent information about the product. Also, it communicates details on functionality, features, quality, and other factors.
When labeling products, marketers are required to do a thorough examination. It is a channel for customer communication. Important choices depending on labeling include:
- Brand Label
- Descriptive Label
- Grade Level
- Informative Labels
Positioning
The target audience develops a distinctive perception of the product thanks to positioning. Also, it sets products apart from rivals by emphasizing features and advantages in the minds of customers. The placement decisions for the products are:
- Segmentation
- Differentiation
- Aggregation
Support
Support, often known as customer support, is a perk offered to customers by the business. It might be provided to the customer through after-sale services, complaint resolution, and other means. It helps develop devoted clients and ongoing sales.
Cost structures for various customer support services vary. Hence, marketers must decide how to cut expenses while enhancing the consumer experience.