Product A set of tangible, intangible and associated attributes capable of exchange for value with a ability to satisfy consumer and business needs. According to alderson product is bundle of utilites consisting of various product features and acccompanying services. E.g- while purchasing a car (tangible product)we are purchasing other services like free services

Criteria to select the product Internal factors:External factors (a)Cost(a)Demands of consumers (b) Experience(b)competition (c) Differentiation (1)pure competition (d)Financial strength (2)monopolistic (e) Functional departments (3) oligopoly (f) Personal factors (4)Pure monopoly (c)suppliers (d) technological improvements (e)Demographic factors (f)Economic and natural environment (g)Political and legal rule (h) socio cultural

1.Cost if the entrepreneur is thinking of completely new product then the cost will be high as it includes research and development cost, initial investment on machinery, training to employees If the product is modification the cost will be lesser if the entrepreneur plan to sell an existing product then the cost will be comparatively lesser. 2.Experience cost advantages offer will be enjoyed by both who first entered in to the business and who have experience in the same field (e.g)genentech for biotechnology IBM for computers

3.Experience The entrepreneur should seleect the product which is different from competitor and this difference need not be actual or real difference but it may be psychologcal difference (e.g)Mercedes benz 4.Financial strength If the entrepreneur selects luxury or high class items then the initial investment will be high If it is semi luxury product then the investment is comparatively lesser It it is perishable products then the investment is lower

5. Functional departments finance dept- availability of funds. R&D-innovation purchasing-sufficient supplies of raw materials manufacturing- suffcient productive capacity to meet productive target. therefore the entrepreneur has to consult these dept heads before selecting the product. 6.Personal factors of an entrepreneur if he is able to take risks,ability to face challenges, optimistic, self confident,flexible,versatile, creative, dynamic, resourceful, perceptive with foresight, knowledge of markets then the entrepreneur can go for new products and if not the entrepreneur can go for existing product

External factors 1.Demand of customers product can be selected if the entrepreneur identify the needs and trends of customer 2.Competiton (a)pure competition-many small buyers and small sellers selling homogeneous products. If the entrepreneur not willing to take risk he can enter in to such industry (b)monopolistic competition-many sellers and many buyers and each sellers has to sell differentiated products the entrepreneur choose the products with slight difference

(c) Oligopoly few large interdependent firms that account for bulk of industry sales. Each oligopolist have large number of customers the actions of one tends to directly affect others in the industry (d)Pure monopoly One firm produces the product but it has no close substitutes (e.g) electricity

4.Suppliers entrepreneurs need to keep in mind the internal resources of the company and need to check availability of raw materials. He has to check the availability of raw materials their efficiency, their promptness etc. 5.Technological improvements the entrepreneur should keep in pace the change in technology he should think of selecting the product the product which is updated otherwise the entrepreneur move out of his business.

6.Demographic factors (a)age (b)sex (c)trends in birth and death rate (d) age distribution (e) educational background. (f) geographical distribution 7.Economic condition The entrepreneur has to into consideration of purchasing power of the consumers in their country. He has to consider both income and spending pattern of consumers

8. Natural environment 9.Political and legal rule Barriers to get success 1.Technical problems 2.Poor timing 3.Prohibitive costs of development 4.Niche and fragmented marketing 5.Development time 6.Competitors 7. govt.constraints