How product decisions affect the rest of the mix

Product decisions often come first, because price, promotion and place all have to support what the product is. Its quality, features, design and brand image set what customers expect from it.

Product sets the price

A product with better quality, useful features, a strong design and a recognised brand image can carry a premium price, because customers can see the extra value and accept paying more for it. A basic version of the same item has nothing extra to justify a high price, so it is usually priced low. Price follows the product rather than being chosen on its own.

Product shapes the promotion

Promotion has to explain the benefit the product offers to its target customer, so what the product is decides the message, its tone and the media used. A firm selling hand-stitched leather pencil cases promotes the stitching and the gift appeal with close-up photographs, a calm tone and adverts in craft magazines or on Instagram. Its plain plastic pencil case would be sold on cheapness and convenience, with a bright, busy message in a supermarket leaflet.

Product shapes the place

The size, weight, perishability and physical or digital nature of a product decide which distribution channels suit it. Heavy or fresh goods are best sold locally so they reach the customer quickly and in good condition, while small light items can be posted anywhere. A digital product such as an app or an e-book needs no shop at all, because it can be sold straight from a website or app store.