4. Key Product Decisions

The actual product is designed to provide(надати) the core benefits sought(які шукає) by the target market. The marketer offers these benefits through a combination of factors that make up (складають, становлять) the actual product.

Four key factors that together help shape(створити) the actual product include:

• Consumable(споживчі) Product Features(риси)

• Branding

• Packaging

• Labeling(маркування)

Consumable Product Features

Features are characteristics of a product that offer benefits to the customer. In most cases, the most important features are those associated with the consumable product since they are the main reason a customer makes a purchase. For this tutorial we separate the benefits of consumable product features into two groups: functional and psychological.

Functional Benefits - Are benefits derived(отримані) from features that are part the consumable product. For instance, a plasma television includes such features and benefits as:

Feature Functional Benefit

screen size offers greater detail and allows for more distant viewing

screen resolution viewing provides clear, more realistic picture

surround sound immerses all senses in the viewing experience

remote control allows for greater comfort while viewing

These features are called functional because they result in a benefit the user directly associates with the consumable product. For marketers functional benefits are often the result of materials, design and production decisions. How the product is built can lead to benefits such as effectiveness, durability, speed, ease-of-use, and cost savings to name just few.

Psychological Benefits – Are benefits the customers perceive(відчувають) they receive(отримують) when they use the product though these may be difficult to measure(виміряти) and may vary(можуть різнитися) by user. These benefits address needs such as status within a group, risk reduction(зменшення), sense(відчуття) of independence, and happiness.

In addition to determining the type of features to include in a product, the marketer faces several other decisions related to features:

• Quantity & Quality vs.(versus=проти) Cost - For the marketers an important decision focuses on the quantity and quality of features to include in a product. In most cases the more features included or the higher the quality level for a particular feature, the more expensive the product is to produce and market.

• Is More Better? – Even if added(доданий) cost is not a major concern(турбота), the marketer must determine(визначити) if more features help or hurt(шкодять) the target market’s perception(сприймання) of the product. A product with too many features could be viewed as too difficult to use. This was often the case when video cassette recorders (VCR) were the principle device(прилад) for taping television programs and watching rented movies. Many of the higher-level features introduced in the 1990s as the product matured, such as advanced television recording, proved too difficult for the average consumer to master.

• Who Should Choose the Features? – Historically marketers determined what features to include in a product. However, technology, and especially the Internet, offer customers the opportunity to choose their own features to custom build a product. For instance, companies offering website hosting services allow website owners to choose from a list of service options that best suits their needs. Also, for traditional products, such as clothing, companies allow customers to stylize their purchases with logos and other personalized options.