Product Decisions

Marketers are faced with product decisions that they need to make to
develop a product that can attract numerous consumers.

1. Product Attributes. These pertain to the quality, design, and features

of a product. The quality of a product refers to its performance and
physical condition. A quality product is a product that is in good order
and condition and performs well. A product with unique features
almost always does well in the market. To improve a product's
features, most marketers, do extensive research and as consumers for
their comments and suggestions. A good product design ensures
marketability. Marketers find ways to improve the product's
competitiveness through innovative designs. Cell phone
manufacturers, for instance, continue to come up with trendy designs
and new features to convince more consumers to buy their products.
2. Branding. A brand is a symbol, name, design, or the combination of
all three that makes a product distinct from its competitors. Marketers
protect the brand names they carry by ensuring good product quality
and performance. A product with a good brand image and recall
usually reap large profits for a firm. Brand names are protected
through business and intellectual property laws. Some firms use their
company name as their brand name. Kelloggs, Del Monte, and IBM
are examples of firms that practice this type of branding strategy.
Conversely, firms like Unilever carry numerous brands like Sunsilk,
Clear, Cream Silk, Ponds, and Surf, among others.
3. Packaging. This refers to the appearance and design of a product’s
wrapper or container. Marketers weigh different factors when it comes
to packaging. In terms of appearance, they consider the size, weight,
and type of packaging material to be used on a product. Marketers
also take into account the taste of consumers. They produce colorful,
innovative, and creative packaging designs that are sure to catch the
eye of the consumers.
4. Labels. Labels are attached to provide the consumers with the
necessary information about the products. Other than the product
manufacturer's name, labels also indicate the product's expiration
date, nutritional contents, and manufacturing location.
5. Support Services. Marketers also offer product support services to
consumers. Extending support services is a way for marketers to
 review and improve a product/service's performance and quality.
Consumers, on the other hand, avail themselves of these services to
resolve their difficulties and concerns with a product/service. Examples
of support services include tree car check-ups, laptop or computer
software troubleshooting, and electronics repair.

Price

Price is the amount that consumers pay in exchange for a

product/service, Marketers consider various factors before setting a price for
a product. One such factor is the marketing objective of the company. Some
firms set low prices to maintain the high demand for a product. There are
instances, on the other hand, when the primary goal of a firm is to maximize
its profits. In line with this objective, the potential profits of a product are
analyzed.

Some firms set prices based on product research and Cost. This is the
reason why most electronic gadgets and drug therapies for rare and deadly
diseases today are expensive.

Prices can be also determined by the market structure wherein the firm operates.
In a perfectly competitive market, there are many buyers and sellers, Because of
the number of participants in the market structure, a uniform price is set for most
products. A monopolistically competitive market, on the other hand, features
many sellers and products with some form of differentiation and variety. In this
market structure, most of the sellers are owned and controlled by a single firm or
manufacturer. Consequently, the dominant firm/manufacturer is the one who sets
the prices of products. In an oligopoly where there are few sellers, one dominant
seller can set the price and the rest will follow suit. This tendency in the market
structure is called price leadership. On the other hand, firms selling a common
product can collude and agree on setting a fixed and regulated price for their
respective products. Organizations such as OPEC (Organization of Petroleum
Exporting Countries) are an example of an oligopoly. Countries that belong to
this organization form a cartel and continuously collude with each other
to set the prices of oil and petroleum products in the world market.

Prices of products are also affected by the elasticity of demand. When

consumers quickly respond to a change in the price of a product, the demand
for it is elastic. Conversely, if consumers do not respond much to the change
in price, the demand is inelastic. However, there are instances when a slight
change in the price of a product can tremendously increase the demand for it.
This trend is called perfectly elastic demand. This occurs when consumers
find a more favorable substitute for a product that had a slight increase in its
price. Quite different is the case when manufacturers of drugs set higher
prices on their products but still elicit the same demand for their products.
This is called perfectly inelastic demand. Most products under this category
have no available substitutes.

Another factor firms consider when they set the price of their products
is the price set for similar products by competitors. Some firms base their
prices on the prices of rival brands. Some firms will try to set the same price,
while others set prices slightly lower than those of their competitors. Lastly,
another factor to consider is state intervention. Price regulation laws are
legislated by the government to monitor and control the price of basic goods
and services. In this case, firms have no choice but to set the prices of their
products according to what i8 mandated by the aforementioned laws.