By definition, the product is fundamental to any marketing activity, since it is by consuming the product that a customer experiences enjoyment and utility. Clearly, a product which does not offer what consumers want at a price they are prepared to pay will never succeed. Decisions about the products that an organization offers are both strategic and tactical. The strategic issues associated with the management of the product portfolio were introduced in Chapter 5, and discussed further in relation to segmentation, targeting and positioning in Chapter 8. Alongside these strategiclevel decisions about the product, there are also important tactical issues which must be considered. These relate to the development, presentation and management of products which are offered to the marketplace. Thus the product element of the marketing mix deals with issues such as developing an appropriate product range and product line, as well as considering decisions relating to the attributes and features of individual products. In this context, the issue of branding is becoming increasingly important for individual products as well as for the organization as a whole. The product element of the marketing mix also deals with issues relating to new product development. Extending product ranges and product lines, either
By the end of this chapter you will be able to: ● explain the nature of financial services products ● explain the operation of key Islamic financial services ● outline the issues influencing product policy ● provide an overview of issues relating to the management of existing products ● develop an understanding of the implications of the product lifecycle concept
for the marketing mix ● outline the issues associated with the development of new products.