Product

• Successful products start with a good design that meets the needs and wants of customers
• When designing a product, a business considers three factors:

  • Function: what the product should do and how well it does it
  • Cost: how cost-effective the product will be to manufacture
  • Aesthetics: how the product appeals to consumers in terms of looks, feel, or smell
• The design mix combines function, cost, and aesthetics in different ways to appeal to different target markets
• A high-end sports car might focus more on aesthetics, being costly to manufacture but appealing to customers willing to pay a high price
• A family car may prioritize function, safety features, size, and environmental friendliness
• A small car might prioritize cost, being competitively priced and economical to run
• Phases of the product life cycle:

  • Introduction: product is launched, sales may be low
  • Growth: sales increase rapidly as more customers become aware and like the product
  • Maturity: sales peak, product becomes established and may become a regular purchase
  • Decline: sales fall as the product loses popularity and is withdrawn when unprofitable
• The level of sales determines where a product is in its life cycle, which can vary greatly between products
• Factors influencing how long a product lasts in its life cycle:

  • The rate of change in the market
  • The strength of the brand image behind the product
• Businesses can extend the life cycle of a product by:

  • Product differentiation: making a product stand out from its competitors by highlighting differences and having a unique selling point (USP)
  • Reducing the price of the product to compete with other products
  • Rebranding the product to refresh its appeal
  • Repositioning the product by exploring new markets or adding value to appeal to a different audience
  • Increasing marketing activity through new advertising campaigns and sales promotions
• A unique selling point (USP) is something about a product that makes it more appealing than its competitors, such as being the best quality, having the lowest price, or having a feature that none of its competitors have