27 Lecture - Product, Product types & step for product development

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27 Lecture

MGT211

Midterm & Final Term Short Notes

Product, Product types & step for product development

Product development is the process of creating new or improved products that meet the needs and wants of consumers. It involves several steps, including idea generation, screening, concept testing, business analysis, product development, market


Important Mcq's
Midterm & Finalterm Prepration
Past papers included

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  1. Which of the following is NOT a step in the product development process? A) Concept testing B) Market analysis C) Customer segmentation D) Commercialization Answer: C) Customer segmentation

  2. What are the four types of products? A) Durable, perishable, services, experiences B) Convenience, shopping, specialty, unsought C) Raw materials, semi-finished, finished goods, consumer goods D) Basic, enhanced, premium, luxury Answer: B) Convenience, shopping, specialty, unsought

  3. Which type of product requires more extensive search and evaluation by consumers? A) Convenience B) Shopping C) Specialty D) Unsought Answer: B) Shopping

  4. Which of the following is NOT a characteristic of a specialty product? A) High price B) Exclusive distribution C) Widespread availability D) Unique characteristics Answer: C) Widespread availability

  5. What is the first step in the product development process? A) Idea generation B) Business analysis C) Concept testing D) Market testing Answer: A) Idea generation

  6. Which step in the product development process involves estimating sales, costs, and profits? A) Concept testing B) Business analysis C) Market testing D) Commercialization Answer: B) Business analysis

  7. What is the final step in the product development process? A) Concept testing B) Market testing C) Commercialization D) Idea generation Answer: C) Commercialization

  8. Which of the following is an example of an unsought product? A) Milk B) Toothpaste C) Funeral services D) Smartphones Answer: C) Funeral services

  9. Which type of product is typically sold at a lower price point and in more locations? A) Specialty B) Shopping C) Convenience D) Unsought Answer: C) Convenience

  10. Which step in the product development process involves testing the product in a small market before a full launch? A) Concept testing B) Business analysis C) Market testing D) Commercialization Answer: C) Market testing



Subjective Short Notes
Midterm & Finalterm Prepration
Past papers included

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  1. What are the four types of products, and what are some examples of each? Answer: The four types of products are convenience, shopping, specialty, and unsought. Examples of convenience products include toothpaste and candy, shopping products include clothes and furniture, specialty products include luxury cars and high-end jewelry, and unsought products include funeral services and insurance.

  2. What is the product life cycle, and how can businesses use it to inform their marketing strategies? Answer: The product life cycle refers to the stages a product goes through from introduction to decline. These stages are introduction, growth, maturity, and decline. Businesses can use this model to inform their marketing strategies by tailoring their efforts to the specific stage of the product. For example, during the introduction stage, businesses may focus on building awareness and creating a demand for the product, while during the maturity stage, they may focus on maintaining market share and profitability.

  3. What are some common reasons for new product failures, and how can businesses mitigate these risks? Answer: Common reasons for new product failures include a lack of market demand, poor product quality, ineffective marketing, and insufficient resources. Businesses can mitigate these risks by conducting thorough market research, developing a high-quality product that meets consumer needs, creating effective marketing strategies, and investing sufficient resources into the product.

  4. What is the concept of product positioning, and how can businesses use it to differentiate their products from competitors? Answer: Product positioning is the process of creating a unique image and identity for a product in the minds of consumers. Businesses can use it to differentiate their products from competitors by highlighting unique features and benefits, targeting specific customer segments, and emphasizing brand values and messaging.

  5. What is the role of branding in product development, and how can businesses create a strong brand identity? Answer: Branding plays a critical role in product development by creating a unique and recognizable identity for the product. Businesses can create a strong brand identity by developing a clear brand message and values, investing in high-quality design and visual elements, and consistently delivering a positive customer experience.

  6. What is the difference between product line and product mix? Answer: A product line is a group of related products sold by a single company, while a product mix refers to the total range of products offered by a company. For example, a company that sells sports equipment may have a product line of running shoes and a product mix that includes running shoes, basketballs, and tennis rackets.

  7. What is the purpose of market testing in the product development process, and what are some methods of conducting market tests? Answer: The purpose of market testing is to evaluate the potential success of a product in a real-world setting before a full launch. Methods of conducting market tests include focus groups, surveys, and test markets.

  8. What are the benefits and drawbacks of a company offering a broad product mix? Answer: The benefits of a broad product mix include the ability to reach a wider range of customer segments and potentially increase revenue through cross-selling. The drawbacks include the need for more resources and the potential for cannibalization of sales within the company.

  9. What is the role of product differentiation in marketing, and how can businesses achieve product differentiation? Answer: Product differentiation involves creating unique features and benefits for a product to distinguish it from competitors. Businesses can achieve product differentiation by investing in research and development, focusing on quality and customer experience, and creating a strong brand identity.

  10. What is the difference between product development and product design, and how are they related? Answer: Product development involves the entire process of creating and bringing a new product to market, while product design specifically refers to the visual and functional elements of a product. Product design is a critical component of product development, as it helps create a product that meets the needs

Product development is a crucial aspect of any business, as it involves creating new products or improving existing ones to meet customer needs and stay competitive in the market. The process of product development includes several steps, from ideation and concept development to market testing and launch. There are four main types of products: convenience, shopping, specialty, and unsought. Convenience products are typically inexpensive and purchased frequently, such as toothpaste or snacks. Shopping products are more expensive and require more research and comparison before purchase, such as furniture or clothing. Specialty products are unique and often high-end, such as luxury cars or high-end jewelry. Finally, unsought products are products that customers don't actively seek out, such as funeral services or insurance. The product development process typically starts with ideation and concept development, where businesses generate ideas for new products or improvements to existing ones. Next, the idea is evaluated and refined, with a focus on market research and identifying customer needs and preferences. Once the concept is refined, the business will move on to product design and prototyping. This involves creating a prototype of the product and testing it to ensure it meets customer needs and works as intended. After the prototype is refined and tested, the product moves into market testing, where it is evaluated in a real-world setting to gauge customer demand and potential success. This can involve focus groups, surveys, or even test markets where the product is launched on a smaller scale. Finally, after market testing, the product is ready for launch. This involves creating a marketing strategy, determining pricing and distribution, and promoting the product to customers. Overall, successful product development requires a thorough understanding of customer needs, effective market research, and a focus on quality and innovation. By following the steps of the product development process and understanding the different types of products, businesses can create products that meet customer needs and stay competitive in the market.

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