Page 2 - Lesson Note 2

These aspects are very important, particularly in the marketing of consumer durable products

(like Automobiles, Refrigerators, etc.). The important product decisions include deciding about

the features, quality, Packaging, labeling and branding of the products.

Place:

Price is the amount of money customers have to pay to obtain the product. In case of most of

the products, level of price affects the level of their demand. The marketers have not only to
decide about the objectives of price setting but to analyze the factors determining the price and

fix a price for the firm’s products.

Decisions have also to be taken in respect of discounts to customer’s traders and credit terms,

etc. so that customers perceive the price to be in line with the value of the product

Promotion:
This refers to all the activities undertaken to make the product or service known to the user and

trade. This can include advertising, word of mouth, press reports, incentives, commissions and

awards to the trade.
It can also include consumer schemes, direct marketing, contests and prizes. Most marketing

organizations, undertake various Promotional activities and spend substantial amount of

money on the promotion of their goods through using number of tools such as advertising,

personal selling and sales promotion techniques (Like price discounts, free samples, etc.).

PRODUCT
In common parlance, the word ‘product’, is used to refer only to the physical or tangible

attributes of a product. Product may be defined as anything that can be offered to a market to

satisfy a want or need.
It is offered for attention, acquisition, use or consumption. From the customer’s point of view, a

product is a bundle of utilities, which is purchased because of its capability to provide

satisfaction of certain need.

CLASSIFICATION OF PRODUCTS

Products may broadly be classified into two categories —