Personal Stories

Product and Marketing Models, What’s the Difference?

Kevin Trotman

Business models are influenced by several internal factors that make a business model a success or a failure.  Leadership: Ensure that qualified individuals that have the ability to make decisions for the greater good of the company are in charge.  These individuals will take strategic action (decisions) that continue to move the business model forward and make adjustments when necessary.   Strategic Business Units that have quick lines of communication from the front-line employee to the managers to ensure if the model is not performing well, that any corrective action that is needed is done quickly and efficiently.  Measurements: Continuous monitoring and reporting to ensure that the said business model is working and producing results. This is by internal reporting metrics or by monitoring consumers via surveys.  Finally, correct any problems that arise during the implementation of the business model to ensure that it is aligned with the company’s philosophy and vision. (McCubbrey 2009)

External factors that can influence the ebb and flow of a business model can be issues such as the competition.  If a competitor is offering a similar product, what makes the company’s business model (product) stand out from the others?  Another factor is the current market conditions that the business model is being introduced in.  Is there a need for any type of product or service that is being offered?  Is it a better value?  Are consumers attracted to the product?  Is there a demand for said product?

The marketing model determines the needs and wants of consumers in a specific market and uses that information to adapt a company (whole) to satisfy the consumer.  This is by knowing what the customer needs, research, finding a way to deliver the product in the most economical way and delivery.  This is quantified by value equals the benefits and price.  (McCubbrey 2009)  One can look to the competitive nature of insurance companies, specifically auto.  Each auto carrier is regulated to the confines of state insurance regulations, i.e., rates.  However, each auto carrier can develop benefits to the customer such as 24 hour claims service, concierge car pick up service, a designated agent to help consumers determine their insurance needs and online policy changes and quoting.

The product model is aligned with the thought that if a company offers a particular product to the consumer at a competitive price, it will be successful in the marketplace.  The reading offers the example of Apple.  However, another example one can look to of the product model gone wrong is the “new Coke” brand. In 1985, Coca-Cola introduced a “new Coke” formula in response to Pepsi Cola’s ever increasing market share in the soda market.  It was introduced to the public market with disastrous results.  People from across the United States flooded the Coca-Cola headquarters with letters and phone calls demanding that their original Coke formula be re-introduced into the marketplace.  The “new Coke” formula lasted 79 days.  (CNBC 2011)  This ties into the idea that consumers are “interested in product quality” (McCubbrey 2009)

The marketing model would be a much more logical ideal for most corporations because of the research, development, engineering and measurement that are involved in bringing a product or service into the marketplace.  The consumer is taken into consideration during the entire process.


CNBC. “Soda Wars: Pepsico vs. Coca Cola.” 2011.

McCubbrey, D.J. Business Fundamentals. Create Space, 2009.