A product is said to be a solution for any problem in the society. A product can be physical, conceptual or virtual. Each product has a definite life cycle after which it needs replacement.
- In marketing, a product can be said to be anything that is offered to the market in order to satisfy the user’s needs.
- In retailing, a product is known as merchandise.
- In manufacturing, a product is bought as raw materials and the final versions are sold as the finished products.
- A service is also considered as a product.
A product should be relevant to the users and they should have an immediate use of it. Details of the product should be well communicated to the potential users. It should have a name which people can remember and relate to. A product should also be adaptable to market trends and the current time.
It is important that you develop your own product using which you can-
- Convert the market needs to a reality-based solution
- Create the tangible from intangible
- Create new wealth
A product can be a physical product such as automobiles, gadgets, home-appliances or any service such as, new IT solutions, new manufacturing process, etc.
The major reasons why you should opt for producing your products for the market benefits are:
- Flexibility: The foremost advantage is flexibility. If something needs to be changed or if you have an innovative idea to an existing problem, you can move forward without contacting any business markets.
- Rapid reaction of the market: The fast and flexible nature allows moving through the product design, development and production phases quickly and easily. Any correction, if required, can also be instantaneous. This helps in quick market reaction by making suitable changes to the product quickly.
- Rapid testing of the business prototypes: A prototype product can be tested and the issues can be discussed easily within the business itself. There is no need to ship the prototypes and thus, it radically speeds up the entire process.
- Customisation: Quick customisations can be done in a fast and easy fashion and it is highly beneficial for small companies.
- Lower cost when producing in lower volumes: Many small businesses don’t find much profit while producing in smaller quantities as compared to bulk orders. The cost associated with manufacturing the product is often much greater than the cost of selling them in lower volumes. But it is outweighed by the fact that there is a much larger control over the production house.
The product development contributes to the larger part of the society in a number of ways:
- New value for the customers: The most important reason for product development is to provide new value to the customers. The customers should have a valid reason to invest their money for the new product. If the product or services have an overwhelming response in the market, the customers will automatically flock to it. If the company offers new values, it will keep growing or else it will eventually die, losing the customer base. If the value is not increasing, the company will lose its ground in the market while others will take over very soon.
- Improvement in the society: Few products have incremental improvements over their previous versions in terms of features and performance. These products may help the company to sustain in terms of business and revenue but they are not of much use to the society. There are instances where a new product release will give results beyond imaginations. Examples may include new drugs that may cure debilitating diseases or any safety device that may save lives of thousands. All these result in the improvement of the society.
- Continued growth and existence of the company: New products and services are the pillars of any company. Without this, the company would die or be replaced or taken by another company. The continuous growth of the companies helps the society to survive and grow as well. Also, it contributes to the economic development of the society.
In addition to the development of products, it is also necessary to brand your products. Businesses developing strong brands build preference for their products. When consumers face the problem of options, they usually go for a trustworthy brand that they have used before. A strong brand ensures customer loyalty.
Branding helps the customers to identify your product using logos, colours, packaging, graphics and helps to reinforce brand qualities. It saves the cost of marketing. Branding also helps you to launch products in the market because customers can relate to the quality of the brand elements and it reduces the risks of failure. It will also help you to increase your venture and also add your customer base. Brand recognition happens when a customer recalls the quality factor of the brand. Brand preference happens when any customer buys your product out of habit because they are satisfied with your previous products. This is how you should reach a broader perspective in creating your own products and attain a higher value in the market.