- Product - the output of a business, what the business produces for sale. This can be either a good or a service.
- Trends - these are activities taking place in a market which a business needs to be aware of so that their products can be developed to meet the future needs and wants of consumers. Trends can be identified by travelling abroad, reading business reports and specialist trade magazines. Suppliers will be a great resource and will often predict future demands so listen to them closely.
- Cosmetic -Cosmetic changes are changes to the look or feel of a product that are basically surface changes, rather than a real change to the product. Are these cheaper than inventing / developing new products?
- Competition - a business needs to respond to changes in the market and compete by introducing new products or on price or service quality. When competition introduces a new product other business will need to respond to this to compete.
- Product range - The different product lines within a targeted market. Ford, BMW & VW have a range of different size cars. A bakery will have a range of products such as cakes, bread, pastries and pies
- Innovation - Not everything can be invented for the first time by a company. Developing products cost money but old ideas can be innovated or changed slightly to bring them more up to date. Innovated products are usually those which focus on small cosmetic changes or different sizes being introduced.
- Product differentiation - this occurs when a business brings out a product which is slightly different to its own products and those of its competitors. Apple have just introduced an iPad Air which is thinner than its original iPad and is looking at competing with other thin and light tablets on the market. Will they ever differentiate it enough to put a sim card in it and be the first to have a tablet you can make calls from?
- Product specification - This details the key features of a product and often relates to speed, size, memory, weight etc. Once this specification is agreed customers will expect every version to have the same spec. The specif cation often gets improved on later models i.e. iphone 3 to iphone 5S & 5C. Whats changed>
- Product life cycle - The stages a product passes through from research and launch to eventual withdrawal
- Product mix - The variety of product lines offered by a business therefore targeting several markets. A baker who only sells bread products is more vulnerable to changes in the market than one who sells sandwiches, crisps and pies
Considering the elements relating to six random PRODUCTS in the marketing mix
Responding to change
Trends and markets
This lesson was designed for collaborative learner led learning
Lesson plan click here
PowerPoint slide click here
Six random products maybe not all viable for a start up business but will get you thinking how do I get these to market quick click here
Video evidence of progress see below:
Apples latest iPhone
OSA's Sound Bins
Augmented reality glasses
'Step & Roll' school shoes
Emergency make up kit for first time mums
Its fair to say that 10A GCSE Business Studies loved the lesson.
Typical exam questions on the marketing mix elements and product that we can test next lesson
•What is a trend in the market? How do you spot them?
•Why do businesses need to respond to change?
•What impact does competition have on product development?
•How can technology help?
•Does globalisation have a role to play in the innovation or invention of new products?
•What does a profitable product idea attract?
•What is the product life cycle?
•Why should you consider the product life cycle of a product when competing with it?
•Why is it important that a business can respond to change?
•What is meant by 'trend' in the market?
•Name three current trends that could be important to a business.
•What is the difference between a real change to a product and a cosmetic one?
•What is meant by ‘Product range'?
•What is meant by 'Product mix'?
•What is meant by adding value to a product?
•What is the difference between and product and a service?
•What is meant by 'consumer durable'?
•Which single part of new technology has had the greatest effect on demand for products?
•Explain why a wide product mix might be better than a narrow one?
Worksheet - Product life cycle & product portfolio
Nine mark questions