Lesson 2 Environment and Market , Concept Development
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This document discusses product development and the process of identifying customer needs and wants. It explains that product development involves modifying existing products or creating new products to satisfy customer needs and wants. The key steps are identifying a market opportunity, creating a product for that market, and testing and refining the product. Some questions to consider are who the product is aimed at, what benefits customers expect, and how it differs from competitors. The document also distinguishes between customer needs, which are basic necessities, and wants, which are desires and luxuries. Finally, it summarizes that product development depends on understanding customer needs and wants.
Lesson 2 Environment and Market , Concept Development
- 1. MODULE 2 : Environment and Market
- 3. When we talk of product development, we are referring to a process of making a new product to be sold by a business or enterprise to its customers.
- 4. The product development may involve modification of an existing product or its presentation, orformulation of an entirely new product that satisfies a newly defined customer‘s needs, wants and/or a market place.
- 5. Development in this module refers collectively to the entire process of identifying a market opportunity, creating a product to appeal to the identified market, and finally, testing, modifying and refining the product until it becomes ready for production.
- 6. There are basic, yet vital questions that you can ask yourself about product development. When you find acceptable answers to these, you may now say that you are ready to develop a product and/or render services:
- 7. 1. For whom are the product services aimed at? 2. What benefits will the customers expect from it? 3. How will the product differ from the existing brand? From its competitor?
- 8. Needs in business are important things that every individual cannot live without in a society. These include:
- 9. 1. basic commodities for consumption; 2. clothing and other personal belongings; 3. shelter, sanitation and health; and 4. education.
- 10. Wants are desires, luxury and extravagance that signify wealth and expensive way of living. Wants or desires are considered above all the basic necessities of life.
- 11. -fashion accessories -expensive shoes and clothes -travelling around the world -eating in an expensive restaurant -watching movies, concerts -having luxurious cars -wearing expensive jewelries and perfume -living in impressive homes,
- 12. To summarize, product development entirely depends on the needs and wants of the customers.
- 13. Concepts of Developing a Product
- 14. Concept development is a critical phase in the development of a product. In this stage, the needs of the target market are identified and competitive products are reviewed before the product specifications are defined. The product concept is selected along with an economic analysis to come up with an outline of how a product is being developed.
- 16. ASSIGNMENT Directions: Select a successful entrepreneur or practitioner. Conduct an interview using the set of questions below. Document the interview and present
- 17. 1.How did you identify your customers? 2. What were your considerations in selecting your customers?
- 18. 3. Explain how your product or service becomes unique compared to other products. 4. What were your preparations before you started the actual business ?
- 19. 5. Did you consult somebody before you engage in this business? Cite sample insights that you gained from the consultation.