Product
- Created by: GreenGooSnake
- Created on: 06-06-19 20:22
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What is a product?
A product is goods or a service that is sold to customers or other businesses. Customers buy a product to meet a need. This means the firm must concentrate on making products that best meet customer requirements.
A business needs to choose the function, appearance and cost most likely to make a product appeal to the target market and stand out from the competition. This is called product differentiation.
How product differentiation is created:
- Establishing a strong brand image (personality) for goods or a service.
- Making clear the unique selling point (USP) of goods or a service, for example, by using the tag line 'quality items for less than a pound' for a chain of discount shops.
- Offering a better location, features, functions, design, appearance or selling price than rival products.
Firms face a dilemma if they choose to launch a premium brand. Improving the quality or appearance of a product adds to the cost of making it. In turn, this means…
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