1. Marketing - Product
Business Management

2. Learning Intentions By the end of this lesson you should:
Understand what is meant by Product Development
Know the different activities that can take place during product development
Be aware of the risks associated with developing a new product

3. Starter Answer the following questions in your jotter:
Outline the 4 P’s of the marketing mix.
Why are each of these important to a business?

4. What do we have to think about when deciding on a Product?
Design
Functionality
Packaging
Range
Choice for consumers

5. Product Development
Every business will have to be innovative and creative to ensure they always have goods/services that satisfy their market. Before a product becomes available in a market it has to go through development. During this process there are a number of activities that companies will have to go through.

6. Product Development Market Research – find out what the customer wants
Ideas begin being generated based on these findings
A prototype (model) of the product may be created
Test Marketing – customers get to try out the product and give feedback
Changes might then be made
The price will be decided
The place the product is being sold will be decided
The methods of promotion will have to be decided

7. Product Development - Risks
There are a number of risks attached when developing a new product:
Customers might not want/like the new item
Money invested would be wasted if consumers didn’t buy it
Reputation could be damaged if a product is released that is poor quality
External factors (PESTEC) could affect the success of the product launch – competition, economy, etc.