Product Decisions
Product decisions in marketing involve determining the features, design, and packaging of a product to meet the needs and preferences of the target market. This includes decisions related to product quality, branding, warranties, and after-sales services. The goal is to create a product that provides value to customers and differentiates itself from competitors in the market.
8 Key excerpts on "Product Decisions"
eBook - ePub- Geoffrey Lancaster, Lester Massingham(Authors)
- 2017(Publication Date)
- Routledge(Publisher)
...Product Decisions determine the upper limit to a company’s profit potential; the rest of the marketing mix determines the extent to which this potential is achieved. It is essential to manage a company’s product mix effectively in a competitive marketplace. Companies are under increasing pressure to continuously develop new products which are timely and respond to customer needs. Successful businesses are able to develop new products to meet changing needs in a dynamic marketplace and it is this aspect of product management that is particularly emphasized in this chapter. Elements of product strategy To illustrate the range of decisions that this key area encompasses, we consider product strategy as a hierarchy of related decisions ranging from product item to product mix elements. The nature and importance of service products are considered in a more detailed discussion of service product characteristics in Chapter 18. Product item decisions The first level of Product Decisions concerns individual products/services that a company manufactures and markets. Some companies produce only one product, but most are multi-product. A product item is, by definition, any item that can be considered as a separate product entity and that may be distinguished from other products the company produces, irrespective of its relationship to those other products. Provided that any product differs in some way from another, either through modification or market application, it is regarded as a product item. At the product item level, Product Decisions include: design, quality, features, packaging and branding. Product line decisions Individual product items that are closely related are classed as product lines...
eBook - ePubMarketing and the Customer Value Chain
Integrating Marketing and Supply Chain Management
- Thomas Fotiadis, Dimitris Folinas, Konstantinos Vasileiou, Aggeliki Konstantoglou(Authors)
- 2022(Publication Date)
- Routledge(Publisher)
...1 Marketing mix elements: (P)roduct: Delimitation and integrative approach with SCM DOI: 10.4324/9780429684883-1 Introduction This chapter presents how product-based decisions must be the result of creative synthesis and good cooperation between the marketing and supply chain executives of a business, as well as among work groups made up of staff from the main partners of a supply chain. In practice, the decisions made and their execution in relation to the product essentially have priority and decisively influence decisions in relation to the 3Ps of the marketing mix; without making a particularly detailed definition of the product, there is no need to make important decisions in terms of the pricing, distribution and promotion/communication of the product. Learning goals After reading this chapter, you will be able to answer the following questions: Why is cooperation important between the strategic partners of the supply chain in the efficient offer of product solutions to the final customers? What is the development process of the new product? What are the stages in the life cycle of a product, and the decisions that must be taken by the business in collaboration with the others involved in the supply chain? Structure 1.1 Product design and operations planning within the supply chain context 1.2 Definition and classification of products 1.3 Decisions concerning the product mix, brand, packaging and labeling of a product 1.4 The new product development process 1.5 Product life cycle 1.6 Inventory management 1.7 Demand forecasting 1.1 Product design and operations planning within the supply chain context The modern world is an extremely competitive environment...
eBook - ePub- Tom Craig, David Campbell(Authors)
- 2012(Publication Date)
- Routledge(Publisher)
...Marketing and Business Products DOI: 10.4324/9780080454603-28 Learning Objectives After studying this chapter, students should be able to describe: the marketing concept; the role of the marketing function and the nature of the marketing mix; the nature of business products and the stages of the product life cycle; pricing strategies in marketing; market segmentation and distribution channels; the major methods of marketing communication and product promotion. 28.1 Marketing Marketing has been interpreted in many different ways, and we should dispense at once with the notion it is simply about advertising and issuing press statements – it is much more. In the modern environment, marketing can be seen as the process of matching the abilities of the organisation to the existing and future needs of its customers, to achieve the greatest benefits for both parties. The result is an exchange in which the organisation receives income through meeting customers’ needs, and the customers receive benefits that satisfy, or perhaps even exceed, their expectations. The term exchange refers to the act of giving something in return for receiving something, which may be in the form of a tangible or intangible product or service. Consider the following two definitions of marketing: Marketing is the management process which identifies, anticipates and supplies customer requirements efficiently and profitably. The Chartered Institute of Marketing – CIM. 1 Marketing is not only much broader than selling … It encompasses the entire business. It is the whole business seen from the point of view of its final result, that is, from the customers’ point of view. Peter Drucker (1999). 2 These two definitions show us two complementary approaches to marketing. Firstly, the Chartered Institute of Marketing (CIM) see it as a management process, that is, something that management does. A management process involves procedures and systems put in place to implement marketing within the organisation...
- Isobel Doole, Robin Lowe(Authors)
- 2012(Publication Date)
- Routledge(Publisher)
...Unit 1 Introduction to strategic marketing decisions Learning objectives Strategic marketing decisions need to be made throughout the marketing planning process, as well as at critical times in response to the competitive challenges facing the company. At these times strategic marketing decision-making may not necessarily be within the formal planning or budgeting cycle, but part of the iterative process of strategy development. In this module, the development of a sustainable competitive advantage is viewed as a continual process requiring a constant stream of strategic marketing decisions to be made that are individually sound and that collectively contribute to the marketing planning process and add value for shareholders and other stakeholders. In this unit you will: 1.1 Examine the role of life cycles in strategic decisions to manage competitive advantage across global, international and domestic markets. 1.2 Examine the influence of market position on strategy and performance. 1.3 Critically appraise the changing dimensions of strategic decisions made to sustain competitive advantage in today’s global markets. 1.4 Assess how product/market/brand/customer life cycles can be managed strategically across markets. 1.5 Examine the role of competitive relationships and how organizations compete to achieve customer preference. Having completed this unit you will be able to: ♦ Appraise a range of corporate and business visions, missions and objectives and the processes by which they are formulated, in the light of the changing bases of competitive advantage across geographically diverse markets. ♦ Demonstrate the ability to develop innovative and creative marketing solutions to enhance an organization’s global competitive position in the context of changing product, market, brand and customer life cycles. This unit relates to the statements of practice: Bd.1 Promote a strong market orientation and...
eBook - ePub- George Stonehouse, Bill Houston(Authors)
- 2003(Publication Date)
- Routledge(Publisher)
...We encountered the major product classifications in Chapter 5, particularly those distinctions between: goods and/or services; consumer and/or industrial products; convenience, shopping and speciality products (Copeland, 1923). For markets, the business will have to reach decisions on geographic coverage, international exposure and the benefits and risks that attend such options (see Chapter 13). Product features Second, decisions must be made on the features that the product will possess. The mix of product benefits that a product will possess will not only strongly affect costs, but also the position that the product will assume in the market. We encountered Kotler's (1997) five ‘levels’ of product features (or ‘benefits’) in Chapter 5, and the inclusion or ‘leaving out’ of any of these will have a strong bearing upon any proposed strategy. Product and market portfolios Third, product and market decisions must include a consideration of portfolio. The extent to which the products and markets are focused or spread can be very important. A broad portfolio (presence in many product market sectors) offers the advantages of the ability to withstand a downturn in one sector and to exploit opportunities that arise in any of the areas in which the business operates. Conversely, a narrow portfolio enables the organization's management to be more focused and to develop expertise in its narrower field of operation. Life cycle considerations The final consideration to be made for products and markets concerns their life cycle positions...
eBook - ePub- Marcos Fava Neves(Author)
- 2012(Publication Date)
- Routledge(Publisher)
...6 Product, Service, Brand and Packaging Decisions In this stage of the DDSP, the following tasks must be undertaken: analysis of products and product lines, as well as complementary product lines, for expansion decisions; use of the concept of networks to identify joint products (e.g creating package products in conjunction with competitors, complementing the product line with other companies’ products, and other actions); identification of opportunities to launch new products; detailing of all services that are currently offered and will be in the future; making decisions in relation to brands (individual brands, collective brands, distributors’ own brands); making decisions in relation to packaging (labels, material, design); producing budgets for expenses relating to products, new products and other actions. Product Decisions In the marketing mix, the product variable assumes a fundamental role, as it represents the group of attributes, functions and benefits that customers buy...
eBook - ePubThe Essential Management Toolbox
Tools, Models and Notes for Managers and Consultants
- Simon Burtonshaw-Gunn(Author)
- 2009(Publication Date)
- Wiley(Publisher)
...The marketing function should not be an isolated internal management activity as it draws a heavy reliance on an understanding of the market needs from customer analysis; from an understanding of the market in terms of growth potential, sustainment and attractiveness and from marketing intelligence. These factors provide reliable information on which to base market decisions which are then reflected in the product design and development, and in the strategic level business planning task. STEPS TO THE PRODUCTION OF A MARKETING STRATEGY NATURE OF DEMAND When examining who buys a company’s products, customers are likely to fall into any one of four categories: Sceptics - once the product enters saturation/maturity and sales level off, the group buying the product is often referred to as the ˋlate majorityʹ or sceptics: • they question the truth in claims • they let the product become ˋtried and testedʹ • they buy it in the late stages of market growth Traditionalists - here the product moves to the decline stage and those who buy it are often referred to as ˋlaggersʹ, ˋnon-adoptersʹ or traditionalists: • they only buy the product when fully established • they cling to the status quo Innovators - are the first customers to buy newly introduced products; normally exhibit dominant values including: • being adventurous • taking risks • eager to adopt and be technically informed Adopters - upon product entering the next stage of growth (i.e. success) with dramatic sales increase; adopters are those who rush and buy the product: • they seek respect • they are well respected by peers • they are also opinion leaders STAKEHOLDER MAPPING: THE POWER/INTEREST MATRIX Analysing the importance of the customers and stakeholders in relation to the business allows companies to know where to concentrate their efforts in managing these important relationships. Reproduced with kind permission of Springer Science and Business Media, from A...
- John Lidstone, Janice MacLennan(Authors)
- 2017(Publication Date)
- Routledge(Publisher)
...9 Marketing Research The product manager becomes of most value to himself and his company when he realizes that he is an important ‘interface’ in the company, who has to be the product ‘expert’, able to communicate recommendations as to future actions and act upon decisions that affect the product. Research will play an important role, helping managers make better, more informed decisions. Marketing decision-makers rely on information supplied by marketing research to support the decision-making process, because it is believed that this reduces the level of risk in making a ‘wrong’ decision. For many companies in healthcare-related industries a well-staffed internal marketing research department is a luxury that cannot be supported in an era of tight cost controls and corporate downsizing. As a result, product or department managers with little formal training in the research discipline are forced to outsource critical marketing studies. Furthermore, marketing research is rarely cheap or easy to obtain and, in fact, may constitute a significant investment in itself...
