258 Chapter 10 Product, Price, and Place Copyright Goodheart-Willcox Co., Inc. Design the Product After proving the new product meets the needs of the market and can be sold at a profit, it is time to design the product. This is the stage where the idea is converted into reality. During the design phase, details of how to produce the product are planned. Product branding is also part of the design phase. Usually numerous designs are completed and evaluated. Build a Prototype A prototype is a working model for a new product for testing purposes. Large companies may create several prototypes for a single idea. But, creating prototypes can be expensive. To save money, an entrepreneur may choose to create a prototype of only one of the designs. Once the prototype is approved, the product can go into full production. Market the Product Many businesses spend a lot of money to introduce new products. It is important to decide which marketing strategies will best reach the target market. The marketing strategies and the budget for marketing should be determined before the product is created. Product Review As the business matures, the market will change and product offerings will need to be adjusted for the business to remain competitive. Businesses constantly need to review product offerings to determine if the product mix is still correct for the market. Another way to remain competitive is to repurpose a current product. To repurpose a product is to use it for something different than its original function. A good example is Arm & Hammer baking soda. By positioning the product as a cleaning agent as well as a baking ingredient, the company got new life out of an old product. A product life cycle consists of the stages a product goes through from the beginning to the end. Certain products, such as computers or cell phones, can have a short life cycle due to rapidly changing technology. The four stages of the product life cycle are introduction, growth, maturity, and decline, as illustrated in Figure 10-1. When a product enters the decline stage, it may be necessary to stop making or selling the product. Introduction Stage The introduction stage is the time when a new product is first brought to the market. At this stage, often very few people know about the product. The costs to create a new product tend to be higher. Also, sales are low in this stage. Therefore, a product may be the least profitable in this stage of the life cycle.