CONSUMER STUDIES – IN-DEPTH STUDY NOTES
Term 1
CHAPTER 1: Moving from an Idea to Producing and Marketing a Product
Unit 1: From an Idea to Production and Marketing of a Product
This process explains how a business idea is developed into a product that is
produced and sold to consumers.
1. Identifying a Business Idea
A business idea starts by identifying:
• A need or problem in the market
• A gap where consumers are not satisfied
Sources of business ideas
• Consumer needs and trends
• Personal skills and hobbies
• Community needs
• Existing products that can be improved
• Feedback from potential customers
2. Market Research
Market research is the process of collecting information about consumers and
competitors.
Purpose of market research
• Identify target market
• Determine consumer preferences
• Identify competitors
• Estimate demand and price range
,Methods of market research
• Questionnaires and surveys
• Interviews
• Observation
• Online research
3. Identifying the Target Market
The target market is the specific group of consumers the product is aimed at.
Factors used to identify a target market
• Age
• Gender
• Income level
• Lifestyle
• Location
• Culture
4. Product Development
Product development involves turning the idea into an actual product.
Steps in product development
• Designing the product
• Choosing materials
• Testing the product
• Improving the product based on feedback
, 5. Planning Production
Planning production ensures that the product can be produced efficiently and
consistently.
Includes
• Choosing production methods
• Estimating quantities
• Selecting equipment and tools
• Planning labour and time schedules
6. Pricing the Product
Pricing determines whether the business will make a profit.
Factors to consider
• Cost of production
• Target market affordability
• Competitor prices
• Desired profit
7. Marketing the Product
Marketing involves promoting and selling the product.
Marketing activities
• Advertising
• Promotion
• Packaging
• Distribution
• Customer service
Term 1
CHAPTER 1: Moving from an Idea to Producing and Marketing a Product
Unit 1: From an Idea to Production and Marketing of a Product
This process explains how a business idea is developed into a product that is
produced and sold to consumers.
1. Identifying a Business Idea
A business idea starts by identifying:
• A need or problem in the market
• A gap where consumers are not satisfied
Sources of business ideas
• Consumer needs and trends
• Personal skills and hobbies
• Community needs
• Existing products that can be improved
• Feedback from potential customers
2. Market Research
Market research is the process of collecting information about consumers and
competitors.
Purpose of market research
• Identify target market
• Determine consumer preferences
• Identify competitors
• Estimate demand and price range
,Methods of market research
• Questionnaires and surveys
• Interviews
• Observation
• Online research
3. Identifying the Target Market
The target market is the specific group of consumers the product is aimed at.
Factors used to identify a target market
• Age
• Gender
• Income level
• Lifestyle
• Location
• Culture
4. Product Development
Product development involves turning the idea into an actual product.
Steps in product development
• Designing the product
• Choosing materials
• Testing the product
• Improving the product based on feedback
, 5. Planning Production
Planning production ensures that the product can be produced efficiently and
consistently.
Includes
• Choosing production methods
• Estimating quantities
• Selecting equipment and tools
• Planning labour and time schedules
6. Pricing the Product
Pricing determines whether the business will make a profit.
Factors to consider
• Cost of production
• Target market affordability
• Competitor prices
• Desired profit
7. Marketing the Product
Marketing involves promoting and selling the product.
Marketing activities
• Advertising
• Promotion
• Packaging
• Distribution
• Customer service
