2. THE MEANING OF “PRODUCT”
• ✔A product is a set of tangible and intangible
attributes, which include packaging, color,
price, quality, brand name and manufactures
and retailers services.
4. Product Classification
On the basis of purpose for which they
are bought.
Consumer product Business Product
Goods or Services
which are bought
by final consumer
for consumption.
Products which
purchased for
further processing
to produce other
products
5. What is new
Product
A new product is a product which is totally new in concept.
Any product which is perceived by the customer as being
new.
A new product can be categorize into :
✔Truly
new
product.
✔Innovated
product from
the existing
one.
6. Reasons for new product
developing
✔Computation:
To maintain or to gain the competitive image in the
market.
Change the consumer needs:
To brings the changes in the consumer needs
7. Continue….
Technology:
Technology that in the favors to develop or to
take the risk of new product development
Good Image:
Company good image in the Market ( in
the mind of customer) to take the risk of
new product development.
8. Methods used for developing new
product
A firm can obtain new product through
two ways
✔ By R & D Cell:
Developing new product
through R&D , either
from entirely new product
or bringing innovation in the
existing products.
– By Acquisition
By this a firm
buy an other
firm wholly or
get licensee in
order to obtain
new product
9. Process of new product
development
New product are develop through a
systematic process ,in which first the
product are find out and then it grows.
The whole process can be divide into many
stages, some Seven stages are given below.
10.
11. Stage#1 Idea Generation
✔The starting stage for new product
development in which typically an
organization develop a number of ideas for
new product
✔Such types of alternatives idea are develop
into a meeting called brain storming session
12. Continue…
✔Sources for idea generation
The organization takes new ideas from two
sources
Internal sources: R&D
Cell Employees feed
backs
External Sources:
✔ Customer Questions &
Complaints
✔ Distributor Feedbacks
✔ Competitors activates e.g.
their Ads as a clue
13. Stage#2 Idea Screening
• ✔In this step one idea is selected from the
alternative idea of the first stage
• ✔The basis for best idea are:
• Utilization
• How much that product will be liked by the
Target customer with the sense of that
product utilization.
14. Continue…
Resources
Which type, quality and at which price
that resources will be available.
Ethical Aspect
What will be the responses of the society to
whom that product will launch.
15. Stage#3 Product Concept Development
✔Once the idea is selected in the idea
screening stage ,then in this stage the
concept of product is developed.
✔Sometime alternative concept of the same
product are developed according to
customer needs ,wants etc
16. Stage#4 Mrkg Strategy Development
• ✔Developing strategy that how to introduce
the product into market.
✔Marketing strategy consisting 3
statements Described the target market
Price ,Channel of distribution and Budget
Goal of the organization,
17. Stage#5 Business Analysis
✔Analysis the product with the business point
of view. This analysis involve a review of
the sales, cost ,profit.
✔The main aim of business analysis is to find
out whether the product satisfies the
company objective or not.
18. Stage#6 Product Development
✔In this stage the product concept is came
into its physical form, then this product is
presented to the market for testing.
✔Test Marketing help the organization in
creating financial decision about whether to
launch that product in the market or not..
19. Stage#7 Commercialization
✔After successful passing the product from
the “ test marketing”, then the firm properly
introduce that product into market.
✔ Note
After commercialization Stage then that
product's life cycle ( PLC) begin.
20. Product life Cycle ( PLC)
✔The commercialization stage of the new
development is consider birth stage for its life
cycle
✔The whole PLC can be divided into Four stages
o Stage -1 Introduction
o Stage -2 Growth
o Stage -3 Maturity
o Stage-4 Decline
22. PLC 1st Stage
Introductions
It is the pioneer stage of PLC in which the
new product is first distributed and made
available for purchases.
Characteristic of this stage:
Negative Profit due to:
Low sale volume Distribution Exps Promotion Expns
24. PLC 2nd Stage Growth
•The second stage of PLC in which a
product's sales starts climbing quickly.
Hence this stage is termed as Market
Acceptance stage.
25. Continue…
Characteristic Of this stage:
Increase in profit due to :
Sale Increase Per unit cost
Competitor enter which push the firm:
Introduce new feature Improve product quality
Giving Promotion &
discounts
Introducing new channels of distribution
26. PLC 3rdnd Stage Maturity
The third stage of PLC in which Sales
growth slow down.
Characteristic Of this stage:
The product growth begins to slow down
(but at later stage of the “Maturity Stage”
27. Continue…
•This stage can be longest one if the
company meet consumer Needs e.g. Adding
extra features in the product.
•If the firm don't brings extra features in
their product, then it possible to enter into
next stage, that is decline stage.
28. PLC 4th Stage Decline
The stage of PLC in which the product is became
out of business.
Characteristic Of this Stage:
Product sales decrease due to:
Shifting consumer taste
New Technology associated with product
Organization that failed to anticipate the decline stage in
earlier may possible to go out of the business
