Key points about marketing your product
- Marketing explores the distinction between needs and wants in product design.
- It examines how consumer demand and technological advancements drive product development.
- It also looks at market research methods like interviews and surveys, alongside the product life cycle stages: inception, introduction, growth, maturity and decline.
The differences in needs and wants
A business aims to fulfil customers’ needs and wants. Knowing what customers need and want is an important part of running a business.
Needs are required by individuals to survive such as:
- water
- warmth
- shelter
- food
- clothing
Wants are items that an individual would like to have but do not require for survival such as:
- phone
- computer
- television
- car
- holidays
How growth in consumer demand (market/demand pull) affects products
Growth in consumer demand (market/demand pull) occurs when increased interest or need for a product leads companies to create or improve items to meet those demands.
| Consumer influence | Demand pull occurs when consumers express strong desires or needs for certain products, motivating companies to create new or improved items to meet those demands. |
| Innovation driven by demand | High consumer demand encourages businesses to innovate, leading to the development of better versions of existing products or entirely new products that satisfy market needs. |
| Market research importance | Companies conduct market research through surveys and interviews to understand consumer preferences, helping them design products that align with what people really want. |
Remember
Consumer Cravings Create New Creations!
How advances in technology stimulate new design (technology push)
Growth in consumer demand (market/demand pull) occurs when increased interest or need for a product leads companies to create or improve items to meet those demands.
| Consumer influence | Demand pull occurs when consumers express strong desires or needs for certain products, motivating companies to create new or improved items to meet those demands. |
| Innovation driven by demand | High consumer demand encourages businesses to innovate, leading to the development of better versions of existing products or entirely new products that satisfy market needs. |
| Market research importance | Companies conduct market research through surveys and interviews to understand consumer preferences, helping them design products that align with what people really want. |
Remember
Tech Triumphs Transform Tomorrow!
What is market research?
Market research is gathering data and information about consumer needs and preferences. It provides information about:
- the market itself (size and make-up – i.e. age, gender, income, tastes)
- customer feedback
- promotional methods
- sales data
- competitors
- effect of price on market
Businesses use the information they gather to design new products and modify existing ones. This approach helps to maximise the potential success of products and services.
There are two main types of market research:
- field research - conducted by gathering primary or first-hand sources
- desk research - conducted by gathering secondary data from previously published sources
Field research/Primary research
Field research is information that is first-hand information. It has been collected by the business for a specific purpose.
| Advantages | Disadvantages |
|---|---|
| Only the firm that collects data has access to it | Expensive to collect |
| Collected for a specific purpose | Time consuming |
Methods of collecting field research include:
| Method | Advantages | Disadvantages |
|---|---|---|
| Face-to-face interview | Two-way communication | Personal interviews can be expensive |
| Researcher can encourage respondent to answer | Researchers have to be selected and trained | |
| Mistakes and misunderstandings can be cleared up right away | Home interviews unpopular with consumers | |
| Postal survey | Inexpensive | Questions must be simple and easy to answer |
| No interviewer training needed | Response rate very low, incentives sometimes needed | |
| Focus group | Qualitative information provided in the form of opinions, feelings and attitudes | Can be difficult to analyse qualitative information |
| Topics can be explored in some depth | Expensive | |
| Hall test | Qualitative information provided in the form of tasting or demonstrations | Respondents may be too positive as they feel obliged to give favourable opinion |
| Telephone interview | Can reach a large geographical area | Response rate may be low as people may view it as a “nuisance call” |
| Inexpensive | ||
| Online survey | Large sample sizes | Limited to people with internet access |
| Inexpensive | ||
| Observation | Quantitative information gathered | Samples are often random and not representative of all customers |
| Real life and behaviours in action | Only shows actions, does not explain attitudes and feelings |
Desk research/Secondary research
Desk research is information that is second hand. It has already been collected by someone else.
| Advantages | Disadvantages |
|---|---|
| Saves time | Not specifically gathered for the business |
| Relatively inexpensive | May be out of date |
| Widely available | May contain bias |
Methods of collecting desk research include:
- sales figures
- newspapers
- websites
- government publications e.g. social trends
- commercial publications e.g. Keynote and Mintel reports
The BBC is not responsible for the contents of any other sites.
Follow the life cycle of a product
A product's journey starts with The stage where an idea is generated, researched and developed into a design before being prepared for launch, where ideas are formed and designs are created. Once the product is designed and ready to be launched, it goes through four main phases known as the product life cycle.
| Phases of the product life cycle | Explanation |
|---|---|
| Introduction | The product is launched, so sales may be low because only a small number of customers are aware that the product exists. |
| Growth | As more customers become aware of the product, sales increase rapidly, especially if customers like it. |
| Maturity | Sales reach their peak during this phase, as the product becomes established. It may become a regular purchase for customers who like it. |
| Decline | Sales fall during this phase as the product loses popularity and customers look for alternatives. It is withdrawn when it becomes unprofitable. |
The level of sales determines where a product is in its life cycle.
The life cycle, and how long it takes a product to go through its life cycle, can vary enormously from one product to another. Some products will exist for years before entering a decline, while other less successful products may go through their life cycle very quickly.
How long a product lasts will depend upon:
- how The rate of change, eg a dynamic market is one that changes rapidly. the market is – eg, technological products (such as tablets and laptops) have short life cycles as they quickly become out of date as new technology emerges
- how strong the How a business or product is perceived by others, including consumers. behind the product is – eg, a new sports shoe from a well-known brand is likely to have a longer life cycle than a new sports shoe from an unknown brand
Extension strategies
Developing new products is expensive and takes time, so businesses will usually try to extend the life cycle of a product and prevent it from going into decline. To do this, they need to find ways of keeping people interested in the product for longer, thereby increasing the number of sales.
Ways of extending the life cycle of a product
There are a number of ways that a business can extend the life cycle of a product:
- Product differentiation – This means making a product stand out from its Another producer who sells similar products., usually by highlighting the differences between it and the other products. Ensuring that a product has a The distinctive factors that make a product or brand stand out from rivals. is a good way to differentiate it from other products.
- Reducing the price of the product - By the time a product has reached maturity, it may face competition from other products. When this happens, the business may no longer be able to charge a high price for the product. If the price is reduced, existing customers are likely to continue buying it, while other customers may switch from competing products.
- Rebranding the product – Tired-looking branding and packaging can put customers off. Refreshing the brand and packaging design can appeal to new customers and convince previous customers to try a product again.
- Repositioning the product - This extension strategy involves exploring new markets for a product. It is possible to revive a product by testing new uses for it or adding value so that it appeals to a different audience. For example, a business could try introducing a different sized version of the product.
- Increasing marketing activity - Running new advertising campaigns and sales promotions can attract new customers, remind previous customers that the product still exists and encourage existing customers to buy more of the product.
A unique selling point, or USP, is something about a product that makes it more appealing than its competitors. Examples include being the best quality, having the lowest price or having a feature that none of its competitors have.
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