A product is any offering that satisfies customer needs, ranging from objects to services to ideas. Most new products are improvements on existing ones, with less than 10% being totally new concepts. The success rate for new products is very low at under 5%. Frequent technology improvements lead to rapid product obsolescence. Developing successful new products involves idea generation, concept development and testing, and determining optimal pricing through techniques like conjoint analysis.

2. A product is any offering by a company to a
market that serves to satisfy customer needs and
wants.
 It can be an object, service, idea,etc.


3. Most new product development is an improvement
on existing products
 Less than 10% of new products are totally new
concepts.


4. The success rate of new products is very low –
less than 5%. ‘You have to kiss a lot of frogs to
find a prince.”
 Product obsolescence is rapid with improvements
in technology
 Shorter PLCs


5. Idea generation
 Idea screening
 Concept development and testing
 Concept testing
 Conjoint analysis – to find out the best valued
attributes by consumers


6. The most customer appealing offer is not always
the most profitable to make
 Estimate on costs, sales volumes,pricing and
profit levels are made to find out the optimal price
– volume mix.
 Breakeven and paybacks
 Discounted cash flow projections


7. Test markets
 Test periods
 What information to gather?
 What action to take?


8. When? (Timing)
 Where? (Which geographical markets)
 To whom? (Target markets)
 How? (Introductory Marketing strategy)


9. Customer value hierarchy
 Core benefit
 Basic product
 Expected product
 Augmented product
 Potential product

10. 
When you exceed customer expectations

11. Need
 Product family
 Product class
 Product Line
 Product type
 Brand
 Item


12. Durable
 Non – durable
 Services


13. Convenience goods
 Shopping goods
 Specialty goods
 Unsought goods


14. Materials and Parts
- raw materials
- manufactured materials and parts
 Capital items
 Supplies and business services


15. The assortment of products that a company
offers to a market
 Width – how many different product lines?
 Length – the number of items in the product mix
 Depth – The no. of variants offered in a product
line
 Consistency – how closely the product lines are
related in usage


16. Product rationalization
 Market rationalization
 Product line length
too long – when profits increase by dropping a
product in the line
too short – when profits increase by adding
products to the product line
 Line pruning – capacity restrictions to decide


17. A name becomes a brand when consumers
associate it with a set of tangible and intangible
benefits that they obtain from the product or
service
 It is the seller’s promise to deliver the same
bundle of benefits/services consistently to buyers


18. When a commodity becomes a brand, it is said to
have equity.
 The premium a brand can command in the market
 The difference between the perceived value and
the intrinsic value


19. Attributes
 Benefits
 Values
 Culture
 Personality
 Users


20. Customer will change brands for price reasons
 Customer is satisfied. No reason to change.
 Customer is satisfied and would take pains to get
the brand
 Customer values the brand and sees it as a friend
 Customer is devoted to the brand


21. Reduced marketing costs
 Trade leverage
 Can charge a higher price
 Can easily launch brand extensions
 Can take some price competition


22. Brand Equity needs to be nourished and
replenished. We must not flog the brand for equity
to be diluted or dissipated
 Store brands


23. Easy for the seller to track down problems and
process orders
 Provide legal protection of unique product
features
 Branding gives an opportunity to attract loyal and
profitable set of customers
 It helps to give a product category at different
segments, having separate bundle of benefits
 It helps build corporate image
 It minimises harm to company reputation if the
brand fails


24. 
Consumers buy from a set of acceptable/
preferred brands

25. Products from different categories under one
brand
 Dangerous to the brand if the principal brand fails
 Sometimes the company name is prefixed to the
brand. In such cases the company name gives it
legitimacy. The product name individualises
it.


26. Product benefits
 Product qualities
 Easy to pronounce
 Should be distinctive
 Should not have poor meanings in other
languages and countries


27. Line extension – existing brand name extended to
new sizes in the existing product category
 Brand extension – brand name extended to new
product categories
 Multibrands – new brands in the same product
category
 New brands – new product in a different product
category
 Cobrands –brands bearing two or more well
known brand names


28. 
This may be required after a few years to face
new competition and changing customer
preferences

29. Includes the activities of designing and producing
the container for a product
 Packaging is done at three levels
- primary
- secondary
- shipping


30. Self service
 Consumer affluence
 Company and brand image
 innovation


31. Packaging concepts
 Technical specifications
 Engineering tests
 Visual tests
 Dealer tests
 Consumer tests
 Packaging innovations
 Environmental considerations


32. Identification
 Grade classification
 Description of product
 Manufacturer identity
 Date of mfg., batch no.
 Instructions for use
 Promotion


33. 
Labels need to change with time or packaging
changes to give it a contemporary and fresh look