1.

The Product Life Cycle

-Product Life Cycle summarizes the sales and profits of a product from the time it is
introduced until it is no longer on the market. The product Life-cycle concepts Is
important to the small business manager for two reasons.

First, it reminds a manager that promotion, pricing and distribution policies

should all be adjusted to reflect a products position on the curve.
Second, it helps the manager see the importance of rejuvenating product
lines whenever possible or switching to more promising offerings.

2. The Product Development

Product development may involve modification of an existing product or its

presentation, or formulation of an entirely new product that satisfies a newly
defined customer want or market niche.
As the product life-cycle concept suggest, a major responsibility of the
entrepreneur is to introduce new products. This responsibility requires the
entrepreneur to have a method for developing new products. The entrepreneur
usually views new-product development as a mountainous task.

IDEA ACCUMULATION. It involves increasing the pool of ideas under

consideration. Here Are some of the many possible source:
1. Sales, engineering, or other personnel within the firm
2. Government-owned patients, which are generally available on a royalty-
free basis
3. Privately owned patients listed in the official Gazette of the U.S. Patient
Office
4. Other small companies that may be available for acquisition or merger
5. Competitors products and advertising
6. Request and suggestions From Customers
BUSINESS ANALYSIS Every new-product idea must be carefully studied in
relation to several financial considerations. Any Idea failing to show that it
can be profitable is discarded during the business analysis stage. Four Key
Factors need to be considered when conducting a business analysis:
1. Relationship to the existing product line
2. Cost of development and introduction
3. Personnel and Facilities
4. Competition and market acceptance
TOTAL PRODUCT DEVELOPMENT it entails planning for branding,
packaging and other supporting efforts. An Actual prototype may be needed.
After these components are considered, many new product ideas may be
discarded.
PRODUCT TESTING through testing, the physical product should be proven
acceptable. A limited test of market reaction to it should also be conducted.
Consumer panels are sometimes used to evaluate a new product stage.

B. PRODUCT STRATEGY ALTERNATIVES FOR SMALL BUSINESS. :

1. One Product/ One Market

- The one product/one market Strategy is customary. Usually, an entrepreneur

will try to carve out a strong market niche with a single basic product.
 2. One Product/Multiple markets

- With a small additional commitment in resources, the existing product can

often be targeted to new markets.

3. Modified product/ one market

- The original product is replaced, gradually phased out, or even left in the
product mix while the new product is aimed at the original target market. The
product modification can involve a very minor change. Some people criticize this
type of product strategy, questioning the real value of such improvements and
the ethics of claiming something is new when it Is really not.

4. Modified product/Multiple Markets

- Firms that market the same product globally or to multiple regions with different preferences target
multiple segments. The product may be tweaked to ensure it is adopted or that it meets a need
unique to a certain segment. Offering one type of product line in multiple formats, such as traditional
and digital, is another way to appeal to several segments based on age and technical knowledge.
Companies that develop a cost-effective distribution method may decide to market several types of
products that appeal to diverse segments. These products are not necessarily similar, yet they could
serve the same category of needs.

5. Multiple Products/ One Market

- Current, satisfied customers make good markets for new addition to the product mix of a small
business. Many products can be added that are more that product modification but generally similar
to the existing products.

6. Multiple Products/ multiple Markets

- They approach a particular appropriate when there is concern that a new

product may reduce sales of an existing product in a particular niche.

7. Other Product Strategy/ Strategy Alternatives

- This strategy is occasionally used in small businesses, especially when the

small product fits existing distribution and sales systems or requires similar
marketing knowledge. This Strategy has a high risk, as a business is attempting
to market an unfamiliar product in an unfamiliar market.

C. BUILDING THE TOTAL PRODUCT OFFERING

- A major responsibility of marketing is to transform a basic product into a total

product offering. To be marketable, the basic product must be named. Have a
packing, perhaps have a warranty, and be supported by the other product
components. Here are Few of the components of a total product offering.

1. BRANDING

- a brand is a means of identifying the product both verbally and symbolically. In

General, there are five rules to follow in naming a product.

Select a name that is easy to pronounce and remember

Choose a descriptive name
Use a name that can be legal protection
 Select names with promotional possibilities
Select a name that can be used on several product lines of a similar nature

Trademark and service mark are legal terms indicating the exclusive right to
use a brand. These marks should be unique, easy to remember and related to the
product. Trademark is an identifying feature used to distinguish a manufactures
product and Service Mark is a legal terms indicating the exclusive right to use a
brand to identify a service.

Once a trademark is selected by a business, It is important to protect its use. Two

Rules can be help.

a) First, be sure that the name is not carelessly used in place of generic
name.
b) Second, the business should inform the public that the brand is a brand by
labeling it with the Symbol.

2. PACKING

Packing is a significant tool for increasing the value of the total product. Innovative
Packing is frequently the deciding factor for consumer. If a product is otherwise very
similar to competitive products, its package may create the distinctive impression
that makes a sale.

3. LABELING
- Labeling is particularly important to manufactures, who apply the most
labels. It often shows the brans, particularly when branding the basic product
would undesirable.
- A Label is also an important information tool for consumers it can be include
information on product care and use.
4. WARRANTIES
- A warranty is Simple a promise that a product will do certain things or meet
certain standards. It may be written or unwritten. A warranty on a product is
not always necessary. The warranty must state a certain minimum standards
such as replacement or full refund after reasonable attempts at repair. A
business should use the following major considerations to rate the merits of a
proposed warranty policy
Cost
Service Capability
Competitive perceptions
Legal Implications