Presented by :- AKANKSHA SINGHEnrollment no. 35M.B.A (General) 1st semester - A
INTRODUCTIONDevelopment of new products is a continuous Function of marketingmanagement in the Present – day environment. The products offered by afirm to the customer must be suitable to meet the changing needs of thecustomers. The life of the firm is closely related to the development of newproducts through technological innovations. The technological innovationsare important to the growth of the established business as well as to thedevelopment of new business. Businessmen must make a detailed study ofthe market in relation to the products because “NEW PRODUCT MEANSNEW PROFIT”.
New product development consists of the creation of new ideas, theirevaluation in terms of sales potentials & profitability, productionfacilities resources available, designing & production testing &marketing of the product. Product development includes a number of decisions, namely,•What to manufacture or buy,•How to have its packaging,• How to fix its price &•How to sell it.The main task of product planners is to identify specific customer needs & expectations & align company’s capabilities with the changing market demands.
The main task of product planners is to identify specificcustomer needs & expectations & align company’s capabilities withthe changing market demands. In each of these stages, themanagement must decide:•Whether to move on to next stage•To abandon the product•To seek additional information
GENERATION OF NEW IDEAS SCREENING OF IDEAS COMMERCIAL FEASIBILITYPRODUCT DESIGNING & EVALUATION TEST MARKETING LAUNCHING THE PRODUCT
Conception of product idea may be faultyDesign of product may not match with needs of customersCost of production may be higher than expected costMarket changes may not be understood properlyInadequate promotionFaulty pricing of the productPoor packaging, inappropriate size, etcProducts may be introduced in the market untimely