When developing your product or service strategy, you will need a clear understanding of two things:
- Total product concept
- Product life cycle
Total Product Concept
A product sells well if it satisfies the needs of consumers. For example, when purchasing a food processor, the consumer is not buying a motor equipped with a variety of bowls, knives and other accessories. The consumer is buying a tool that will help save time in the kitchen.
Product-service relationship is a set of expectations that a company creates to satisfy its customers’ needs and desires.
In the retail environment, total product includes many things, such as:
- Goods on display
- Customer service
Product Life Cycle
People’s needs and wants are constantly changing. Products, like people, have a life cycle. For example, computers which were considered state-of-the-art five years ago, may be obsolete today.
Any product or service moves through identifiable and predictable stages from the time it’s first conceived and introduced to the market.
Table 2 outlines the five stages in a product’s life cycle.
Table 2: Five Stages in a Product’s Life Cycle
Click on Worksheet 4.2 to develop your product description and strategy.