Product This can be a physical product, a service, or, in some cases, both. Product development includes making decisions about what the product will do, how it will look, what kind of customer service is needed, whether a warranty or guarantee is appropriate, and how the product will be packaged to attract customers.Price Setting the correct price point for a product is an important marketing function. The price must attract the customer, compete with other similar products, and return a profit. Pricing looks not only at the list price but also at any discounts or allowances that will be offered.