INTRODUCTION

 Product policy is the first component of the marketing function

 Explains how a business is going to develop a new product, design and package it

OUTLINE THE STAGES/STEPS OF PRODUCT DESIGN

 Selecting and sifting of product ideas to find the best solution

 Design and testing of the product concept, which happens before a product developed
 Consumer response must be tested using a small sample of the product
 The product is launched and marketing campaign implemented
 Technical systems and processes are put in the production planning and control process

DISCUSS THE IMPORTANCE OF PRODUCT DEVELOPMENT/ IMPACT OF POOR PRODUCT DESIGN

 If there is an ineffective product policy, it will result in more product recall, which could cost businesses
millions
 Business will lose potential new clients and profit if they have no product policy
 Existing clients will not be loyal and will not support the business, due to a bad reputation
 If the product design does not suit the target market, they will be very little demand for the product
 Investors will withdraw their support if the business losses its reputation and gains a poor image

DISCUSS FACTORS THAT INFLUENCE PRICING

1. Competitors prices

 The price that competitors charge is a determining factor that influences the setting of a price.

2. Change in consumer tastes and habits

 If the demand for the product is high or the product is brand new, a higher price can be charged.

3. Changes in consumer income

 If you have only a certain amount of money at your disposal/if your income changes (lowers) you cannot
buy more than what you can afford.

4. Change in production cost and time

 Businesses cannot sell products at less than what the product cost to make.

EXPLAIN THE PURPOSE OF SALES PROMOTION.

 Informs customers about the product.

 Persuade potential customers to buy the product now rather than later.
 Remind the target market of the availability of the product.

EXPLAIN THE PURPOSE OF ADVERTISING

 To attract the attention of people

 To create a desire in consumers to buy the product
 To provide the information needed to persuade the consumers to act and buy the product.

CONCLUSION

 The main aim of the communication policy is to informing the target market that the product is available.
 The purpose of the marketing communication policy is to increase the sales of the product.
INTRODUCTION

 Production planning involves the scheduling of work/deciding how production should be done.
 Planning controls the flow of production and the quality of the products that comes off the
production line.
DISCUSS THE EFFECTIVENESS/ADVANTAGES OF PRODUCTION PLANNING

 Allows a business to budget for correct machinery/workers, can become very expensive.
 Ensures that the correct quality of raw materials is purchased and are controlled.
 Workers are aware of what is expected of them with allows for greater job satisfaction.
 Consumers stay loyal to the business, receive good quality goods at the right place/right time.
 No delays in production as raw materials are ordered at the correct time, good quality/at a
reasonable price.
OUTLINE ASPECTS THAT MUST BE CONSIDERED DURING PRODUCTION CONTROL.
Dispatching

 Giving the production orders for the production of work to begin at each station
Following up

 Keeping watch over the production process to make sure that operations are running smoothly
Inspection

 Inspection includes the process followed as well as the actual products made according to
standards.
Corrective Action

 Any adjustment which must be made to any of the processes or materials used must be corrected if
it impacts on productivity or costs.
EXPLAIN THE FOLLOWING MARKETING ACTIVITIES
1. STANDARDISATION

 Ensure that all products are of the same quality, protecting the buyers interest
 Taking steps to ensure that goods produced meet the required standard
2. GRADING

 Classing products according to their characteristics such as their size or quality

 The process of storing units of a product into their specified classes or grades of quality
3. STORAGE

 Storage is needed as goods must often be stored in warehouses until the final consumer needs the
goods
 The storage facility will be influenced by the types of goods that must be stored
4. TRANSPORTATION

 The method of transport will be influenced by the type of product that must be transported
 Ensures that the products are moved from the producer to the consumer
5. FINANCING
  Capital is used to meet the financial needs of businesses that are involved in marketing activities
 Required to achieve the marketing objectives
 Involves the raising and usage of funds
6. RISK BEARING

 The business carries the risks involved with owning the goods, as there is a possibility of damaged
goods resulting in financial loss
 Businesses may be faced with risks, which may result in financial loss, a business can insure itself
against these types of risks
7. BUYING AND SELLING

 The business function deals with searching for customers

 The business function deals with promoting the product
OUTLINE THE TYPES OF PRODUCTS
Classification of products:
1. Industrial goods

 Used in the manufacturing process to produce other goods, for example spare parts, equipment or
machinery
2. Consumer goods
Convenience goods

 Low priced goods, where little shopping effort is needed with little thought going into buying these
goods (bread, milk, sugar)
Shopping goods

 More expensive than convenience goods, consumers do not buy them regularly (TV, vehicle, clothing)
Speciality goods

 These goods usually have specific brand names (jewellery, branded clothing)
Services

 Rendered by service providers to consumers (garden services)

Unsought goods

 Good that consumers do not think of until they need such products
CONCLUSION

 Marketing is all activities involved in getting products and services from the producers to the
consumers to satisfy customer needs
 The purpose of marketing is to link the products and services of the business to the customer needs
and wants

INTRODUCTION
  Production control ensures that individual tasks must be controlled to ensure the right quality
products are delivered in the right quantities at the right time.
 It involves overseeing all aspects of the production process, from when the raw materials/inputs
enter the production system until they leave the production system/outputs

EXPLAIN THE ROLE OF THE PRODUCTION FUNCTION IN THE MANUFACTURING PROCESS.

 The production function is the department that is responsible for the processing/transforming raw
materials into goods and services to satisfy the needs of consumers.
 The production function is responsible for the production planning, production costs, production
systems, quality control and safety management.
 Production function determines if the system chosen will be an interrupted or uninterrupted
system, this decision will affect the cost of the products being made.

OUTLINE ASPECTS THAT MUST BE CONSIDERED DURING PRODUCTION CONTROL.

Dispatching

 Giving the production orders for the production of work to begin at each station
Following up

 Keeping watch over the production process to make sure that operations are running smoothly
Inspection

 Inspection includes the process followed as well as the actual products made according to
standards.
Corrective Action

 Any adjustment which must be made to any of the processes or materials used must be corrected if
it impacts on productivity or costs.
DISCUSS THE REQUIREMENTS FOR A SAFE ENVIRONMENT.

 Employers must place visible warning signs for machinery/equipment to ensure safety of workers
 A first-aid kit must always be available/workers must know where the first-aid kit is kept in the event
of an emergency.
 Workers must be made aware of all safety policies and procedures in the workplace.
 Fire protection equipment must be clearly indicated and known to employees.
 Protective clothing must be made available to workers in dangerous work environments
 The environment/factory must be well ventilated and adequate lighting available to workers.
SABS

 To develop and publish standards for products and services.

 The product standard states what is acceptable in terms of technical specifications.
 Serves as a guide to ensure that a product will perform the function that it was intended to perform.
ISO 9001

 It is an international standard that specifies requirements for a quality management system.

 Organisations use the standard to demonstrate the ability to consistently provide products and
services that meet customers and regulatory requirements.
 IS09001 ensures that customers get consistent, good quality products and services, which in turn
benefits many businesses.
CONCLUSION

 Quality circles is a group of employees with a variety of skills and experience coming together to
solve problems related to quality.
 They investigate problems and suggest solutions to management

INTRODUCTION

 Product policy is the first component of the marketing function

  Explains how a business is going to develop a new product, design and package it

DISCUSS THE IMPORTANCE/PURPOSE OF PACKAGING

 Packaging is needed to contain the item or product

 Makes products easier to identify
 Differentiates the product from other competing products
 Improves convenience in use or storage of a product
 Reduces storage costs by minimising breakage

DISCUSS THE IMPORTANCE OF A TRADEMARK TO BUSINESSES AND CONSUMERS

 Trademark establishes an identity

 Offers a degree of protection as branded products can be traced back to the manufacturer
 Forms part of advertising of the business and its product, it is an important asset for the business
 A trademark creates a product image that can be trusted by the consumer and can be traced back to the
manufacturer
 It is difficult for consumers to choose a substitute product, when they accept a trademark that best suits
their needs

METHODS OF CALCULATING THE FINAL PRICE OF THE PRODUCT (Please note these are also pricing techniques)

Market based pricing

- This is a pricing technique that is determined by what the consumer is willing to pay for the product.

Example: the popular iPhone - what is the market willing to pay?

Mark-up pricing

- Is a method of adding a percentage of a mark-up to the cost of the product to determine the selling price.

Example: cost to make the product, business wants to make a 30% profit. Add a 30% mark-up and then add to the
cost of product (this then becomes your selling price)

Competition based price

- Using the competitors pricing as a starting point for determining the product's price.

Cost-based/orientated pricing

- Involves setting the price of a product based directly on its costs.

RECOMMEND PRECAUTIONARY MEASURES THAT BUSINESSES SHOULD TAKE WHEN HANDLING MACHINERY.

 Workers must be provided with adequate training in the relevant machinery, before operating machinery.
 Protective clothing must be provided to workers when asked to operate dangerous machinery.
 Old equipment that is hazardous, must be transported and disposed of in a responsible manner.
 Loss or damage of machinery must be reported to employers; this could decrease injuries.
 Employers must assess the height /space that machinery operates in, in order not to cause structural
damage or danger to workers.

CONCLUSION

 Production control ensures that individual tasks must be controlled to ensure the right quality products are
delivered in the right quantities at the right time.
 It involves overseeing all aspects of the production process, from when the raw materials/inputs enter the
production system until they leave the production system/outputs