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