TYPES OF PRODUCTS

-CONSUMER GOODS - goods produced for the

general public

-CONSUMER SERVICES - services provided for

the general

public

-PRODUCER GOODS (Capital Goods) - goods

produced for businesses to use

-PRODUCER SERVICES - services that are

provided to help other

businesses

PRODUCT DEVELOPMENT

1. Generate ideas

2. Further research on best ideas

3. Decide whether the company will be able to sell

enough to make a reasonable profit

4. Develop a prototype

5- Test market - launch in one part of the country

6. Go to full launch

The Costs & Benefits

+Unique Selling Point (USP) - special feature which

differentiates it from other products of competitors

+Diversification

BUT

-Cost of market research & analysing findings

-Cost of producing trial products - waste

Branding

-BRAND NAME - unique name of a product that

distinguishes it from

other brands

-BRAND LOYALTY- consumers keep buying

the same brand

-BRAND IMAGE- personality and distinguishes

it from competitors brands

Brand Image importance

-Creates a brand image (identity/personality)

-Encourages brand loyalty (customers to keep

buying it)

-Higher quality & price than unbranded products

Packaging = the physical container or wrapping for

a product (also used for promotion and selling
appeal)

-Eye-catching

-Promotes brand image

-Carries important information (label)

The product life

-cycle shows the sales pattern of a product

over time.

-stages a product will pass

through from its introduction, through its

growth until it is mature and then finally its

decline.

Development - high costs (prototype, market

research) but no sales

Introduction - low sales (consumers unaware of

existence),low competition, one version of product,
price skimming (high price set) or penetration
pricing (price set lower than competitors)

Growth - sales increase, competitors enter market,

more versions, price reduced slightly.

Maturity - sales increase slowly, intense

competition

Saturation- sales stabilise at highest point,

Decline - sales decline, reduce product range