Hi everyone, so let’s start today where we left off last time, but before we go straight to the product, let us take a look at market research. Market research is the recording, collecting and analysis of data which is used for research purposes.
There are two types of Market Research, Primary research and secondary research. Primary research involves the first-hand collection of data by the researcher himself. This type of research is more time taking and expensive, but also more accurate and useful. The other type of research is secondary research, this research involves the collection of data by the researcher through other means, such as the internet etc. It is of course less time taking.
Methods of primary research
There are various methods of primary research, like:
- Questionnaires: This is a set of one or more papers on which are written questions that are relevant to the researcher. The person who receives the questionnaire has to answer those questions and through this the researcher gains information. It is a very accurate as well as a reliable form of research bu it has thr obvious disadvantage of having a very low response rate as most people ignore them .
- Interviews: These are short question answer sessions between the researcher and interviewee, either face to face or by telephone.They are very helpful in gathering relevant and accurate information but may be subject to interviewer bias.
- Observation: This is the observation by a researcher to the number of consumers who buy a certain product and other information.
- Consumer panels: Groups of consumers discuss their opinions about a certain product.
All these methods help a researcher to gather information which is vital to a business that is about to launch a new product.
Now back to product and packaging. A product my friends is the end result of processing of raw materials and that is ready for sale.
A product needs to have certain qualities for it to be successful:
- Quality
- Durability
- Appearance
- Endurance
All these qualities make a product successful.
There are two types of products or services:
- Consumer products/services: These products are manufactured to be consumed by people.
- Capital goods: These goods are manufactured so that they can be used by firms and industries to make new products e.g heavy machinery like cranes, welding machines etc.
Product Development
These are the series of stage that have to be gone through by a business in order to successfully make a product.
Generate Ideas
Select the best ideas for further research
Decide if the company will be able to sell enough for
The product to be a success
Develop a prototype
Test launch
Full Launch
It is through all these stages that a business goes through that it is finally able to manufacture the right kind of product. Not to mention that market research takes place before any of these steps to ensure the viability of the product and reduce the risks.
Branding
The brand name is the the unique name that distinguishes a product from a competitor’s products. It is a very powerful weapon in business that has the power to ensure customer loyalty for generations or it can forever destroy a business’s image in public. However we will now move onto packaging.
Packaging
Packaging plays a very important part in advertising and enhancing a products appearance.
Firms pay special attention to the container of goods in order to give their products a attractive outlook which increases their chances of sale. E.g packets of chips have very attractive colors and very exaggerated pictures of chips inside to coax consumer into buying the product.
Another function of packaging is to protect the product from damage. This is very necessary as the image will diminish if the consumer on opening the packaging finds the product all messed up.
Product Life Cycle
Cash inflow
time
Introduction Growth Maturity Decline
All these stages constitute the product life cycle of a product. When the product is introduced in to the market cash starts to flow in slowly and slowly as thegrowth phase starts, cash inflow becomes rapid and the business starts making profit. As competition grows maturity arrives and daleds become condtant. And finally decline comes when the sales fall. Only if extension strategies are applied can the product’s life cycle be extended.
FAQs
Q:1 Define Market research.
Ans. Market research is the recording, collecting and analysis of data, for research purposes. There are two types of market research such as primary and secondary research.
Q:2 What is a product life cycle?
Ans. It is a pattern of sales of a product recorded throughout its life, starting from its introduction to its decline.