4.5a Product

• 4 types of consumer products are consumer perishables, speciality consumer goods, consumer durables, fast moving consuming goods.
• A product is a good or service that serves the satisfy the needs and wants of customers.
• A product can be tangible or intangible.
• Consumer products are purchased by private individuals for personal use.
• Producer products or industrial goods are purchased by businesses (B2B) for use in the production process.
• Standard product life cycle: R&D , Launch , Growth , Maturity , Decline
• R&D requires high research and development costs where prototypes and test markets are used. There is no profit and negative cashflow.
• In the launch stage, the product is introduced to the market. Sales increase slowly. Investment expenditure is focussed on promotion and capital investment and profit is generally low and cashflow negative.
• A brand refers to a name or trademark identifiable with a business or product but can also be a sign, symbol etc.
• Brand awareness is a measure of what extent to which potential customers and the public recognise a brand.
• Brand development refers to the marketing process of improving and enlarging a brand name.
• Brand loyalty is when a customer buys the same brand again and again.
• Brand switching is when customers purchase from different brands.
• Brand value is the premium customers are willing to pay for a brand name.