Product Planning

• What is a product in the context of consumer needs?


  A product is anything that meets a consumer’s needs and provides value through a marketing exchange.
• What is considered the tangible product in food product development?


  The actual food item is considered the tangible product that meets consumer needs.
• What are the three levels of a product?

  • Core product: What need is the product trying to meet?
  • Physical product: The tangible features of the product.
  • Extended/augmented product: Non-physical benefits like packaging and endorsements.

  
• What does the core product level focus on?


  The core product level focuses on what need the new food product is trying to meet.
• What is the aim of the marketing team regarding the physical product?


  The aim is to ensure the product design meets the core needs identified by the target market.
• What does the extended/augmented product include?


  The extended product includes non-physical benefits like recyclable packaging and celebrity endorsements.
• What is the product life cycle?


  The product life cycle traces the growth, stationary, and decline phases of a product’s sales generation life.
• What are the stages of a product life cycle?


  1. Introductory: Launching the product, high costs.
  2. Growth: Strong sales and profits, increased production.
  3. Maturity: Established product, competition increases.
  4. Decline: Sales decline, decisions on product future.
• What characterizes the introductory stage of the product life cycle?


  The introductory stage is characterized by high costs of production and promotion.
• What happens during the growth stage of the product life cycle?


  Sales and profits grow as the product gains market acceptance.
• What is the focus of marketing strategies during the maturity stage?


  Marketing strategies focus on brand name, company image, and pricing.
• What is market saturation?


  Market saturation occurs when sales cannot be improved due to intense competition.
• What occurs during the decline stage of the product life cycle?


  Sales decline and companies must decide on ways to revive or exit the market.
• What are the remedial actions for a sick product?


  1. Discontinue manufacturing.
  2. Sell the product to another company.
  3. Revise marketing strategies.
  4. Gradually decrease distribution and manufacture.
• What is the most obvious indication of a product in decline?


  The most obvious indication is a decline in sales and profits.
• How can a company recognize a 'sick product'?


  A company can recognize a 'sick product' by observing its sales decline and profit drop.
• What should a company do if a product is in decline?


  The company should consider investing in development or changing marketing strategies.