Product design begins with identifying the characteristics and expectations of the target market based on the product. The key benefits customers look for in a product must be identified. Multifunction products can give product benefits expected by many types of customers. On the other hand, a customer may suspect that the product promises too much, and that it will not live up to its promises.

A multipurpose product may also appear too complex and sophisticated to the average buyer. A product has to complement human effort rather than overwhelm. Building user friendliness into products has become a very important factor in product design, and a whole discipline of study called ergonomics has evolved.

Aspects like quality, styling, performance and materials affect a product image. It is better to give desired quality at acceptable prices than to give the highest possible quality at unreachable prices. Product performance output and costs of product use is another important feature that should be part of product design. The materials used for making a product have to be selected so as to be safe, free from health hazards, economical and appealing.

Product obsolescence refers to the life of a product or the duration it can be used. This is another very important aspect in the product design and development. Functional obsolescence occurs when a new technological finding makes an existing product out of date. The manufacturer controls planned obsolescence. Postponed obsolescence is when a marketer decides to withhold product improvements until present inventories are sold out or demand falls sharply.