{"id":285,"date":"2022-09-20T15:36:03","date_gmt":"2022-09-20T14:36:03","guid":{"rendered":"https:\/\/blogs.glowscotland.org.uk\/glowblogs\/n5businessmanagement\/?page_id=285"},"modified":"2024-10-09T15:36:27","modified_gmt":"2024-10-09T14:36:27","slug":"product","status":"publish","type":"page","link":"https:\/\/blogs.glowscotland.org.uk\/glowblogs\/n5businessmanagement\/product\/","title":{"rendered":"Product"},"content":{"rendered":"

Marketing Mix – Product<\/strong><\/span><\/h2>\n

The product is the good or service that has been produced \u2013 it must meet the wants and needs of the customer.<\/p>\n

Different c\"\"<\/a>ustomer groups have different requirements so most businesses will produce different versions of the products for different market segments.\u00a0 For example Kelloggs have Frosties for children, Special K for the weight conscious.<\/p>\n

 <\/p>\n

An organisation may decide to produce several different products with different uses but marketed under the same brand.<\/p>\n

This way they may benefit from each customer buying more than one of their products as they may develop a loyalty to the brand. \u00a0This can help spread the risk of failure if one product falls from favour.<\/p>\n

\u00a0<\/strong>The Product Life Cycle<\/strong><\/span><\/h2>\n

\u00a0T<\/strong>he product life cycle shows the stages a product may pass through over time, with the impact on levels of sales and profit at each stage.<\/p>\n

\u00a0<\/strong>Research & Development Stage<\/span><\/h3>\n

An organisation that diversifies (produces different types of products<\/em>) and innovates (has ideas for new products<\/em>) is likely to succeed in satisfying wants and needs of customers over time.\"\"<\/a><\/p>\n

The stages in research and development of a product are:<\/p>\n

    \n
  1. Come up with an idea<\/strong> <\/span>for a new product (innovate\/diversify).<\/li>\n
  2. Carry out market research<\/strong><\/span> to check demand and existing competition.<\/li>\n
  3. Develop a prototype<\/strong> <\/span>(trial version) of the product and test market<\/strong><\/span><\/li>\n
  4. Review test marketing findings and modify<\/strong> <\/span>the product as required.<\/li>\n
  5. Organise factors of production<\/strong> <\/span>– suppliers, workers, equipment.<\/li>\n
  6. Make marketing<\/strong> <\/span>decisions eg price, place and promotion.<\/li>\n<\/ol>\n

    At the research and development stage, there are no sales and therefore no profits.<\/p>\n

    Introduction Stage<\/span><\/h3>\n

    The product is launched on the market.\u00a0 Customers have limited awareness and may be unlikely to try it in place of products they have been buying for some time.<\/p>\n

    Sales are slow<\/strong> and the product will not yet cover costs and make a profit.<\/p>\n

    Marketing activities are needed to establish the product in the market.<\/p>\n

    Growth Stage<\/span><\/h3>\n

    Due to successful marketing activities, customer gain awareness and are more willing to try the product.<\/p>\n

    Sales gradually increase<\/strong> during this stage.\u00a0 Marketing activities continue to build up customer loyalty.<\/p>\n

    The product may begin to cover costs and may make a profit at this stage<\/strong>.<\/p>\n

    Maturity Stage<\/span><\/h3>\n

    The product is well established in the market with trust and confidence from its customer base.<\/p>\n

    Sales and profits are at their highest levels<\/strong>.<\/p>\n

    Competitors may begin to notice of this success and may consider entering the market.<\/p>\n

    Marketing activities must continue so that the product can continue to hold its own in the market.<\/p>\n

    Decline Stage<\/span><\/h3>\n

    Consumers may become tired of the product and switch to newer products offered by competitors.<\/p>\n

    The product may have become obsolete due to advances in technology or changes in customer tastes.<\/p>\n

    Sales begin to fall and therefore profits begin to fall<\/strong>.<\/p>\n

    Diagram showing the different stages of a product life cycle:<\/p>\n

    \"\"<\/a><\/p>\n

     <\/p>\n

    Product Branding<\/strong><\/span><\/h2>\n

    A brand<\/strong> is a product or range of products with unique and\/or recognisable features – eg we all recognise products from Heinz, Cadbury, Virgin or Coca-Cola.<\/p>\n

    \"\"<\/a>\"\"<\/a><\/p>\n

    Brand identity may take the form of a logo, slogan or distinctive packaging or colour scheme.<\/p>\n

    The aim of branding is to make the product instantly recognisable to the consumer, and to develop customer confidence in the quality and reliability of the product.<\/p>\n

    Benefits of Branding<\/strong><\/span><\/h3>\n