Stages of product development

Question 1

Stages of Product Development

Answer 1

• Information gathered from market research is used by businesses to help them identify need.
• A business will then aim to develop a new product that will meet the identified need effectively.
• Development of a new product involves a number of different stages:

Idea generation– They come up with new or existing ideas of a product
Development– Business’s then develop the product using their ideas
Prototypes and testing– Prototypes are made and then undergo tests to ensure the product is safe, reliable, fit for purpose and one that customers can and will use.
Modifications– After seeing the prototype or early versions in use, alterations can be made to improve the product.
Launch to market– Finally the product is put into production and a marketing and advertising campaign is launched to introduce and sell the product to customers.

Question 2

Product Life Cycle after development

Answer 2

Introduction– Product is launched on the market. Advertising costs will be high in order for the product to get noticed, the sales are low and you are yet to make a profit.

Growth– Sales begin to rise. Advertising costs are still high. You will start to make profit if all development cost have been recouped.

Maturity– Sales and profits are at their peak. Advertising can be reduced as product is now well known.

Decline– Sales begin to fall, and cost start to rise to keep product relevant or to quickly sell all stock left.

Question 3

Branding

Answer 3

Well known products often have memorable branding.

Branding uses and promotes logos, slogans and unique design. The image of the brand is all important and this image is created through advertising. Brands cost a lot of money to build up.

Question 4

Advantages and Disadvantage to branding

Answer 4

Advantages Disadvantages
Customers trust and High advertising costs
become loyal One mistake can tarnish brand reputation
Good image Open to imitation/fake products
Premium pricing It could take a lot if time and lot of expense
Can easily add new to establish and build a successful brand
new product to your business
as the brand is already well known
-Customer are willing to pay a higher
amount because they think it’s better quality

Question 5

Minimising Packaging Cost and Benefits

Answer 5

COSTS
-Increased risk of damage due to insufficient packaging
-May become less attractive to customers
BENEFITS
Costs Benefits
-Can reduce production costs as less materials are required for packaging
-Can reduce transport costs as goods are smaller and lighter
-Reduces cost because less landfill is required
-Can improve brand image

Question 6

OWN BRANDING

Answer 6

Benefits- More profit for the own brand

Cost- People may not buy it and go for quality over cheap