Characteristics of the Product
The unique characteristics of a product should be used as inputs in determining the product’s marketing mix.
LEARNING OBJECTIVES
Examine how the characteristics of a product impacts the selection of a promotional mix
KEY TAKEAWAYS
Key Points
- The characteristics of the product are the features that differentiate it from other products on the market.
- When companies create a product they have specific features in mind. It can be characteristics that improve on an existing product or ones that fill a currently unfilled need. Promoting these features can be a successful approach.
- Characteristics of a product also help to determine the price of a product. Premium features may be able to fetch a premium price.
- It is the combination of demand for a product and its price that help to determine the marketing mix.
Key Terms
- marketing mix: A business tool used in marketing products; often crucial when determining a product or brand’s unique selling point. Often synonymous with the four Ps: price, product, promotion, and place.
- target market: a group of people whose needs and preferences match the product range of a company and to whom those products are marketed
- price index: A statistical estimate of the price level of some class of goods or services.
Characteristics of the Product
The characteristics of the product are the features and elements that differentiate it from other products on the market. Product characteristics help determine the marketing mix, potential target market and the pricing of a product.
Characteristics: A product’s characteristics determine its target market and price.
A product needs to differentiate itself in the market and carry distinct characteristics that separate it from its competitors. Otherwise, there would be no reason for consumers to purchase that product over any other product on the market.
Determining the Marketing Mix
When companies create a product they have specific features in mind. It can be characteristics that improve on an existing product in the market or ones that help with a currently unfilled need. Companies spend a lot of time and money on product research to understand the needs of the market and how their product can fill that need.
Characteristics of a product also help to determine the price of a product. Some high end features will increase the price of the product, while low-end features could decrease the price of the product. This can determine where a product may fall on the price index. It is the combination of demand for a product and its price that help determine the marketing mix.
Different strategies are used for high end, expensive products than are used for low end, less expensive products. In addition, different marketing strategies are used depending on the target market. Some consumers need an Internet marketing approach, while other consumers may be more receptive to television or magazine ads. All of these questions can be answered by understanding the characteristics of the product.