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They can be perishable goods as food or can last a long period of time as furniture. ; Consumer services: these are services that are produced for people. E. G. : hairdressing. ; Producer goods: these are goods produced for other businesses to use. They are bought to help with the production process from the previous stage of production. E. G. : lorries. ; producer services: these are services that are produced to help other businesses. E. G. : accounting. It is Important to know which type of product the business has when developing it and promoting it if it wants to be successful.
Other features have to be also accomplished by the product: ; It satisfies existing needs and wants of costumers. It is not too expensive to produce. The design has to be suitable for the product. The company has to be a market leader when developing Its new products. ; Has something distinctive from its competitors. It Is capable of stimulating the consumers’ wants. Product development To develop a product, the company has to follow a process: 1. Generate Ideas: from the competitors’ products. Customers’ suggestions. Employees, Research and Development department and Sales Department. . Select the best ideas for further research: the company needs to decide which Ideas to abandon and what ideas to make further research. 3. Decide of the company will be able to sell enough for the product to be a success: the Marketing Department will need to measure the likely size in the market share the product will have and the likely size of sales. 4. Develop a prototype: doing this the Product department will be able to know how the product will be manufactured. 5.
Launch the product In one part of the country to test the market: the product is launched into a small part of the arrest In order to let know the company what impact It will have when it Is fully launched. 6. Go too full launch of the product to the whole market: the product is launched into the mall market. The Importance of branding 1 OFF have to create a brand of the product. The brand of a product shows the product’s characteristics and the reasons for buying it. ; In order to do this the company will need a brand name. A brand name is the unique name of the product which distinguishes it from other brands.
They will also need a unique packaging which will distinguish it from others. Businesses normally use their brands to: Charge a higher price to the product (higher quality) ; Encourage consumers to buy their product (brand loyalty). ; Show that there will be the same standard of the product (quality). ; In order for the business to have brand loyalty, they will need a brand image. A brand image is an image or identity that gives to the product and doesn’t to other competitors. The role of packaging in the marketing mix The packaging in a product is its physical container which wraps it.
The packaging has two functions to perform: ; It has to be suitable for the product. It has: To give protection to the product, therefore it doesn’t have to be delicate and easy to damage. ; To carry information of the product on it. To be easy to transport the product. To be easy to open and to use it. The colors used in the packaging are also important because they are part of the promotion of the product. It has to be eye-catching. The colors and shape of the product will also contribute to the brand image of the product. The product life cycle Products do not last forever therefore every product will follow a cycle. 1 .
Development: the prototype will be tested in a small part of the market and market search on the product will be developed. There will be no sales done at this stage of the cycle. 2. Introduction: the product is fully launched. Sales will grow slowly because some consumers will not be aware of the products presence in the market. There will not be any profits done at this stage because the costs of developing the product will not be covered yet. Informative advertising will be used to make the product known by the consumers. 3. Growth: Sales grow rapidly. Persuasive advertising will be used to create a brand loyalty on the consumers.
Profits start to be add as the development costs have been covered. 4. Maturity: Sales now increase slowly. Competition is greater. Advertising will be done to maintain consumers. Profits are at their maximum stage. 5. Saturation: sales have reached their highest point. Competitive pricing is used. Profits start to fall as sales are the same and prices have to be reduced because of competitors. 6. Decline: new competitors’ products have been launched into the same industry and the company has lost its appeal. Sales will decrease till the product isn’t profitable to be produced anymore.