Week 5 Project

Product Planning and Development

A product is the foundation of the marketing mix and the beginning of an organization's marketing strategy. It is the need-based offering

of an organization. In economic terms, it creates either form or task utility. Form utility is applied when raw materials are combined with

labor to create a physical good of value. Company X uses raw rubber combined with steel to form steel-belted tires. Therefore, it

represents form utility. On the other hand, task utility is applied when labor is used to provide a service. Company Y provides spa services, which involve physical labor. Therefore, it represents task utility. It is important for organizations to be aware of these utility types. Too

often, organizations develop products they are interested in producing rather than conducting research to see what the consumers'

needs actually are. To make a product successful, an organization requires a good product plan. Good product planning and development

starts with conducting research on the target market to determine its needs and wants. There are three research methods of determining

consumer needs and wants. These methods are focus groups, consumer panels, and ladder interviews.

Consumer panel : is a long-term advisory group comprising consumers who match the demographics and psychographics of the target market. An organization usually sends its consumer panel test products for feedback.

Focus group : is one of the most common methods of conducting consumer research. In this method, marketing managers gather

consumers to get their views on product ideas or to explore what they are looking for in a new product.

Ladder Interview : is a personal interview in which individuals are asked a series of questions about a product and how they use it.

A product strategy is a response to the marketing objective formulated after performing a strengths, weaknesses, opportunities, threats,

and trends (SWOTT) analysis and a market growth strategy analysis. Regardless of whether the organization pursues a new product

growth strategy or an existing one, tactical decisions need to be made concerning the following key issues:

Features and design: Features are what differentiate a product from its competitors in the market. Design can be a crucial element

in differentiating and positioning the product in the market. Design includes the physical and functional aspects of the product.

Variety and quality: Variety in a product refers to slight differences in the attributes of the product. The quality of a product refers

to its ability to ful�ll its role and deliver the bene�ts it is supposed to offer.

Branding, packaging, and labeling: A brand can be a symbol, a name, or a design that identi�es an organization and its products.

Therefore, one of the key roles of a marketer is to develop, enhance, and preserve the brand. As the package is the customers' �rst contact with the product, it is essential that the product be packaged well. A well-designed package and labeling may be required to

emphasize the bene�ts or features of a product.

Support services: Support services supplement the actual product offering. Although some organizations may not offer these

services, the ones that do easily gain an advantage over their competitors.

Additional Materials

View a Pdf Transcript of Product Planning and Development (media/transcripts/Week_1/SUO_MKT3010%20W3%20L1.pdf? _&d2lSessionVal=xr7yaZzkJrURph0nMJkp0ZfNC&ou=83096)

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