(a) What is a product? (b) Distinguish between product and production concepts. (c) State seven reasons why new products may fail in the market?

Answer Details

(a) What is a product?

A product is anything that can be offered to a market for attention, acquisition, use or consumption to satisfy a want or need. It may be a tangible good (such as soap), an intangible service (such as banking), or a combination of both, and it includes the physical item together with its brand, packaging, quality and associated services.

(b) Distinction between product concept and production concept

(c) Seven reasons why new products may fail in the market

1. Poor or inadequate marketing research: The product does not match real customer needs because the market was not properly studied.
2. Wrong pricing: A price set too high or too low relative to value discourages buyers.
3. Poor timing of the launch: The product enters the market too early or too late.
4. Weak or ineffective promotion: Customers are not made sufficiently aware of the product's existence and benefits.
5. Poor product quality or design defects: The product fails to perform as expected and loses customer confidence.
6. Strong competition: Rival products that are better, cheaper or already established push the new product out.
7. Poor distribution: The product is not available where and when customers want it.

Other acceptable reasons: inadequate finance to support the launch, and over-estimation of market demand.