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Product

The term product refers to any good or service offered for sale to customers. A good is a physical product that a customer can pick up, use, eat or drink. A service is something that a customer experiences, such as a train ride or a phone contract.

Product portfolio

A business usually sells more than one product, they will often sell a range of related products, or the same product in a range of colours and sizes. A range of products is often referred to as a product portfolio. For example, a carpet company will sell a range of different carpets, and a broadband supplier would sell a range of broadband contracts.

Product differentiation and unique selling point (USP)

Product differentiation is where businesses produce similar products to their competitors, but have something to make themselves stand out. Product differentiation also links to having a unique selling point (USP). Examples of how a business could create a differentiated product include branding, convenience and speed, superior quality and unique design.

Brand

Creating a brand is extremely important, this makes a business immediately recognisable to customers and potential customers. A business will often have a specific name and logo to make their brand easily recognisable to customer, such as Apple and Coca Cola. The business must ensure that no other business is already using their name and logo.

Packaging

Packaging of products is extremely important and can often represent the brand. Packaging must be appropriate for the product, provide enough protection, be environmentally friendly, be clearly identifiable, show the brand logo, and have colours that relate to the product and brand.

Product design

Product design is an extremely important consideration for a business. Businesses must make sure that their products are both visually appealing and complete the functions they are intended for in an efficient way. Designing products can be expensive, so a business will want to make sure that its design effectively fits in with the brand and product portfolio. Throughout the design process, a business may complete market research and a series of trials to make sure their product will meet the needs of their customers.

Innovation

Innovation relates to creating new, fresh ideas that haven’t been done before, and adapting existing ideas and products within a business. For example, a food company may innovate their products to bring out a new flavour or change the size of items. Innovation is very important for businesses to keep up with current consumer tastes and ensure they are able to retain a competitive advantage.