What are the Considerations in Producing a Product?

Acceptance of the product by the consumer – Consumer approval of the product is crucial to sales. The demand of industrial and direct customers should be separately analyzed. Consumers make purchasing decisions based on various factors, including appearance, convenience, and usefulness. The durability, cost of operation, price of the product are some of the other factors that contribute to the products’ acceptance. In addition to these considerations, industrial buyers prioritize appropriateness, durability, quality, consistent supply, and cost.

Trademarking the product/Issuing a patent – Before deciding to start on a costly development program, the level of protection provided by a patent should undergo adequate investigation. Any person who has developed or discovered something new can acquire a patent. Trademark registration and copyright reservation are two more options for equal protection. A copyright is a legal term that refers to the legal protection of an original creative or literary work. Copyrights apply to the authoring of books and other printed materials such as paintings and maps. Trademarks generally protect brand names and emblems used on products and services. A trade mark is a form of intellectual property that consists of a recognized symbol, design, or expression that distinguishes a specific source’s products or services from those of others.

Expenditure incurred on development and manufacturing the product – Management must see a return on the investment before creating a specific product. The return must be proportional to or more than the cost of developing the product. This includes a projection of the product’s market and time, effort, and equipment needed to develop it. The product should be manufactured in a lab and on a commercial scale, considering quantity and cost.

Complementary Products – Management is always in search for new items to sell, articles that can be manufactured or sold during slow seasons. In terms of manufacturing or distribution, or both, products may be complimentary. For example, a razor blade manufacturer may also create shaving cream since the organization’s current distribution network may reach distribution outlets.

The effect a new product has on the existing products in the market – The management should also consider the influence of prospective goods on existing products. In some instances, such as with complementary goods, adding a new product helps to complete the product line; in other cases, the new product competes directly with an existing product and may or may not enhance the organization’s overall sales and profits. Introducing a low-cost model to expand the market for a high-quality existing product may cause the latter’s market to contract. In general, introducing a new product is a positive step forward, but determining whether it will benefit or harm an existing product line requires caution.

By-products associated – A product development program would be beneficial in finding new methods to use by-products and trash by producing by-products such as shoe soles, dog collars, skate straps, and leather washers, a firm that manufactures high-quality leather belts may find a market for its waste leather pieces. Earnings from waste by-products are higher than profits from the main product in several situations. The two most essential requirements for converting waste resources into usable goods with a value many times greater than the cost of development are research and creativity.

What are the Considerations in Producing a Product?

When a product is in its’ formative stages of development, the company must keep in mind the following points:

Acceptance of the product by the consumer – Consumer approval of the product is crucial to sales. The demand of industrial and direct customers should be separately analyzed. Consumers make purchasing decisions based on various factors, including appearance, convenience, and usefulness. The durability, cost of operation, price of the product are some of the other factors that contribute to the products’ acceptance. In addition to these considerations, industrial buyers prioritize appropriateness, durability, quality, consistent supply, and cost.

Trademarking the product/Issuing a patent – Before deciding to start on a costly development program, the level of protection provided by a patent should undergo adequate investigation. Any person who has developed or discovered something new can acquire a patent. Trademark registration and copyright reservation are two more options for equal protection. A copyright is a legal term that refers to the legal protection of an original creative or literary work. Copyrights apply to the authoring of books and other printed materials such as paintings and maps. Trademarks generally protect brand names and emblems used on products and services. A trade mark is a form of intellectual property that consists of a recognized symbol, design, or expression that distinguishes a specific source’s products or services from those of others.

Expenditure incurred on development and manufacturing the product – Management must see a return on the investment before creating a specific product. The return must be proportional to or more than the cost of developing the product. This includes a projection of the product’s market and time, effort, and equipment needed to develop it. The product should be manufactured in a lab and on a commercial scale, considering quantity and cost.

Complementary Products – Management is always in search for new items to sell, articles that can be manufactured or sold during slow seasons. In terms of manufacturing or distribution, or both, products may be complimentary. For example, a razor blade manufacturer may also create shaving cream since the organization’s current distribution network may reach distribution outlets.

The effect a new product has on the existing products in the market – The management should also consider the influence of prospective goods on existing products. In some instances, such as with complementary goods, adding a new product helps to complete the product line; in other cases, the new product competes directly with an existing product and may or may not enhance the organization’s overall sales and profits. Introducing a low-cost model to expand the market for a high-quality existing product may cause the latter’s market to contract. In general, introducing a new product is a positive step forward, but determining whether it will benefit or harm an existing product line requires caution.

By-products associated – A product development program would be beneficial in finding new methods to use by-products and trash by producing by-products such as shoe soles, dog collars, skate straps, and leather washers, a firm that manufactures high-quality leather belts may find a market for its waste leather pieces. Earnings from waste by-products are higher than profits from the main product in several situations. The two most essential requirements for converting waste resources into usable goods with a value many times greater than the cost of development are research and creativity.

What Product Considerations should be a Part of the Marketing Plan?
Time and accessibility to resources are the two critical elements in the launch of a business. A marketing strategy is critical to the success of any organization, and it is a document that identifies and makes a company’s marketing strategy and actions clear and quantifiable. A solid marketing strategy will help define its target market, brand positioning, price, and distribution strategy.

Some product considerations that should be part of the marketing plan includes-

Cost of the product, i.e., the product can be one of the best, but if it does not fall within the consumers’ price tolerance levels, nobody will buy the product.

The marketing plan should establish the ‘need’ for the product, and it would help give product development a direction, but it would also establish a consumer base for the product.

The product must fulfill its purpose as the marketing plan promises.