Product Design

Chapter 4

Product Item• Is a specific model or size of product

Product Line• Group of closely related products

Product Mix• All the products a company makes

Product Classification

Consumer Good• Purchased and used by the

ultimate consumer for personal use

Business Goods• Purchased by the

organization for use in their operation

Point of Difference

• Is a unique characteristic or benefit that sets the product apart from a competitor’s product

Steps in New Product Development

• SWOT Analysis• Idea Generation• Screening and Evaluation• Business Analysis• Development • Test Marketing• Commercializtion

SWOT Analysis

• Strength• Weakness• Opportunity • Threat

Focus Group

• A panel of six to ten consumers who discuss their opinions about a topic under the guidance of a moderator

Commercialization

• Is a process that involves producing and marketing a new product

Product Life Cycle• Introduction – main focus is promoting consumer

awareness and getting consumers to try the product

• Growth – more competitors enter the marketplace if they see a new product is successful (Powerade/Gatorade) Distribution is important

• Maturity – sales begin to slow down• Decline – sales begin to drop. Technology

advances can cause entire categories to entire decline stage

Repositioning

• Involves changing a product’s image in relation to its competitor’s image.