Product Decision Concept:

Product decisions are critical components of a company’s marketing and business strategy. These decisions involve various aspects related to the development, management, and marketing of products or services. Here are some key concepts and considerations related to product decisions:

1. Product Development: This phase involves the conceptualization and creation of new products or the enhancement of existing ones. Companies must consider factors like market research, innovation, design, and feasibility during this stage.
2. Product Mix: A product mix, also known as a product assortment, refers to the range of products or services offered by a company. It includes product width (the number of different product lines) and product depth (the variety of choices within each product line).
3. Product Life Cycle: Products typically go through a life cycle consisting of stages like introduction, growth, maturity, and decline. Understanding where a product is in its life cycle can inform marketing and resource allocation decisions.
4. Product Positioning: Product positioning involves defining how a product is perceived in the minds of consumers compared to competitors. Effective positioning helps differentiate the product and target the right market segment.
5. Product Branding: Branding decisions include creating and managing a brand identity for the product. This encompasses the brand name, logo, design, and brand personality, all of which contribute to brand equity.
6. Product Packaging: Packaging decisions involve the design and materials used for product packaging. Packaging not only protects the product but also plays a crucial role in marketing and brand presentation.
7. Product Pricing: Pricing decisions determine how much the product will be sold for in the market. Pricing strategies can include premium pricing, penetration pricing, or value-based pricing, among others.
8. Product Distribution: Distribution decisions involve selecting the most appropriate channels and methods for getting the product to customers. This includes considerations like distribution channels, logistics, and inventory management.
9. Product Quality: Maintaining consistent product quality is essential for customer satisfaction and brand reputation. Quality control and quality assurance processes are integral to product decisions.
10. Product Differentiation: Companies often seek ways to differentiate their products from competitors. This can involve unique features, superior quality, branding, or customer service.

Product Hierarchy:

The product hierarchy is a framework used by marketers to categorize and understand a company’s product offerings based on their relationship to one another. It consists of several levels or layers, each with a specific role and function within the product mix. The typical product hierarchy includes the following levels:

1. Core Product: At the core of the hierarchy is the fundamental benefit or problem-solving capability that a product provides to customers. For example, the core product of a smartphone is communication and information access.
2. Actual Product: This level represents the tangible features and attributes of the product that customers can see, touch, or experience. It includes the physical product, design, brand name, and packaging.
3. Expected Product: The expected product level includes the basic expectations that customers have when purchasing a product. These expectations can include certain quality standards, reliability, and performance.
4. Augmented Product: The augmented product level encompasses additional features or services that enhance the product’s value and customer experience. Examples include warranties, customer support, and accessories.
5. Potential Product: This level represents the product’s future potential, including possible innovations, upgrades, and adaptations that may be introduced over time to meet changing customer needs and preferences.

Understanding the product hierarchy helps companies position and market their products effectively. It allows them to communicate the full range of benefits and value their products offer to customers, from the core benefit to the augmented features and potential enhancements.