M9 l2 Factors That Contribute to the Selection of Products and Services


Published on

Small Business

Published in: Education
1 Like
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

M9 l2 Factors That Contribute to the Selection of Products and Services

  1. 1. Factors that Contribute to the Selection of Products/Services in Small Business
  2. 2. Product life cycle : The evolution of a product/service on the market; stages include introduction, growth, maturity, and decline. Product mix strategy : A plan of action taken in selecting an appropriate product/service mix to achieve the goals of the business. Important Terms To Know
  3. 3. Market research : Gathering and analyzing data about factors which influence the potential success of a product or service. Market share : The business’s portion of the total sales in a specific market; expressed as a percentage. Market position : The image a product or business has in relation to its competition. Important Terms To Know
  4. 4. Categories/Factors That Influence Product/Service Selection Business Considerations: Factors influencing the success of a selected business in relationship to the competition. <ul><li>Size of business </li></ul><ul><li>Goals of business </li></ul><ul><li>Competition </li></ul><ul><li>Image </li></ul><ul><li>Location </li></ul>
  5. 5. Categories/Factors That Influence Product/Service Selection Consumer Considerations - Factors influencing the success of a selected business in relationship to the potential market. <ul><li>Consumer preferences </li></ul><ul><li>Consumer response </li></ul><ul><li>Sales promotion </li></ul><ul><li>Market Trends </li></ul>
  6. 6. Product/service considerations - Factors influencing the success of a selected business in relationship to new or existing product/idea/service selection and mix. Categories/Factors That Influence Product/Service Selection
  7. 7. Product/service considerations Branding Packaging Labeling
  8. 8. <ul><li>Selecting products/services that have a name, symbol, or design for identification. </li></ul><ul><li>Manufacturer brands </li></ul><ul><li>Private brands </li></ul><ul><li>Generic brands </li></ul>Branding
  9. 9. Manufacturer brands <ul><li>Owned and introduced by manufacturer </li></ul><ul><li>Easily recognized as a result of national advertising </li></ul><ul><li>Standard quality and price. </li></ul>
  10. 10. Private Brands <ul><li>Owned and introduced by wholesalers and retailers </li></ul><ul><li>Offered by department stores and chain stores </li></ul><ul><li>Easy to control profits and consumer loyalty since the products are not sold by competitors. </li></ul>
  11. 11. Generic Brands <ul><li>For the price conscious customer </li></ul><ul><li>Offered by discount stores and supermarkets </li></ul><ul><li>Little or no promotion of the product. </li></ul>
  12. 12. Packaging <ul><li>Physical appearance of a product, container, or wrapper </li></ul><ul><li>Promotes and sells the product by appearance </li></ul><ul><li>Gives the product identity, especially in the promotion of the product </li></ul><ul><li>Provides information about use, safety, and contents of the product </li></ul><ul><li>Protects the product and the consumer </li></ul>
  13. 13. Labeling <ul><li>Presents information about product contents, directions for use, and safety; </li></ul><ul><li>Protects the business from legal liability for mishaps involving its product. </li></ul>
  14. 14. Product Life Cycle <ul><li>Represents the stages that a product goes through during its life </li></ul><ul><li>At each stage, marketers must adjust their product mix and marketing strategies </li></ul>
  15. 15. Introduction Stage <ul><li>Product is introduced to the market </li></ul><ul><li>Efforts focused on promotion and production </li></ul><ul><li>Least profitable stage </li></ul>
  16. 16. Developing New Products <ul><li>Introducing the Product </li></ul><ul><ul><li>The product has been researched successfully </li></ul></ul><ul><ul><li>This stage also is called commercialization. </li></ul></ul><ul><li>Evaluating Customer Acceptance </li></ul><ul><ul><li>Marketers track new product performance. </li></ul></ul>
  17. 17. Growth Stage <ul><li>The product is enjoying success </li></ul><ul><li>Increasing sales and profits </li></ul><ul><li>Competition is aware and is offering new products to compete </li></ul>
  18. 18. Maturity Stage <ul><li>Sales level off or slow down </li></ul><ul><li>Most of target market owns product </li></ul><ul><li>Spend a great deal of time and money in efforts to fight off the competition </li></ul><ul><li>Decide whether to continue to improve the product to gain additional sales </li></ul>
  19. 19. Decline Stage <ul><li>Profits may be smaller than cost </li></ul><ul><li>Sell or license the product </li></ul><ul><li>Recommit to the product line </li></ul><ul><li>Discount the product </li></ul><ul><li>Regionalize the product – restrict sales of a product to certain local areas. </li></ul><ul><li>Modernize or alter the product offering </li></ul>
  20. 20. Deleting a Product or Product Line <ul><li>Obsolescence </li></ul><ul><li>Loss of appeal </li></ul><ul><li>Conflict with current company objectives </li></ul><ul><li>Replacement with new products </li></ul><ul><li>Lack of profit </li></ul><ul><li>Conflict with other products in the line </li></ul>
  21. 21. Market/Product Position * Quality and price - Help to determine a business’s position in the marketplace. *Features and benefits- The features and/or benefits of the product/service promote a business position in the marketplace. *Relation to competition - A business can choose how to compete to get the advantage over competition (direct or indirect). *Relation to other products in the product line - A business will position their own products in relation to others in their product line.