Product This can be a physical product, a service, or, in some cases, both. Productdevelopment 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 aprofit. Pricing looks not only at the list price but also at any discounts or allowances thatwill be offered.