Theory question 102
Product(a) What is a product? (b) Distinguish between product and production concepts.
(c) State seven reasons why new products may fail in the market?
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(a) A product is anything, tangible or intangible, offered to a market to satisfy a want or need.
(b) Product concept: consumers prefer products with the best quality, performance and features, so the firm concentrates on improving the product. Production concept: consumers prefer products that are widely available and cheap, so the firm concentrates on efficient mass production and wide distribution.
(c) Any seven: poor or no market research; product does not meet a real need; poor quality or design; wrong price; poor promotion; poor distribution; bad timing of launch; strong competition; poor packaging or branding; high production costs; changes in consumer taste; government restrictions.
For (b), state the focus of each concept and contrast them.