Marketing - Product Business Management

Learning Intentions By the end of this lesson you should: Understand what is meant by Product Development Know the different activities that can take place during product development Be aware of the risks associated with developing a new product

Starter Answer the following questions in your jotter: Outline the 4 P’s of the marketing mix. Why are each of these important to a business?

What do we have to think about when deciding on a Product? Design Functionality Packaging Range Choice for consumers

Product Development Every business will have to be innovative and creative to ensure they always have goods/services that satisfy their market. Before a product becomes available in a market it has to go through development. During this process there are a number of activities that companies will have to go through.

Product Development Market Research – find out what the customer wants Ideas begin being generated based on these findings A prototype (model) of the product may be created Test Marketing – customers get to try out the product and give feedback Changes might then be made The price will be decided The place the product is being sold will be decided The methods of promotion will have to be decided

Product Development - Risks There are a number of risks attached when developing a new product: Customers might not want/like the new item Money invested would be wasted if consumers didn’t buy it Reputation could be damaged if a product is released that is poor quality External factors (PESTEC) could affect the success of the product launch – competition, economy, etc.