This document discusses key concepts related to new product development including defining what constitutes a new product, the significance and benefits of new products, reasons for new product failure, and the scope and goals of product management. A new product is defined as something new to the world, a new product line, or an improvement/revision to an existing product. Developing new products provides benefits like growth, responding to competition, utilizing excess capacity, and increasing profitability. Common reasons for new product failures include being a "me too" product, lacking genuine superiority, poor market research, and rushing products to market before they are ready. The goal of product management is product planning, development, branding and creating value at each stage of the product lifecycle

2. 1.What is a Product?
 It is anything that can be offered to a mkt. for
attention, acquisition, use or consumption that
might satisfy a want or a need.

3. PRODUCT COMPONENTS
Core component
Packaging component
Supporting
Service
components

4. Significance of New Product
 Growth.
 Response to competition.
 Excess capacity.
 To increase cash flow/ profitability.
 Cost reduction.
 Creativity of management.

5. WHAT IS A NEW PRODUCT?
 New to the world.
 New Product Lines.
 Addition to existing product lines/product mix.
 Improvements in/ Revision to existing product.
 Repositioning.
 Cost reduction.

6. FIRM’S POINT OF VIEW
Increasing Technological Newness
Objecti
No. Tech.
Change
Improved
Technology
New Technology
NoMkt
Change
Strengthen
Mkt
NewMkt.
IncreasingMarketNewness
-- Reformulation Replacement
Remerchandising Improved
Product
Product line
Extn.
New use Mkt. Extension Diversification

7. REASONS FOR NEW PRODUCT FAILURE
 “Me Too” product.
 Lack of genuine superiority.
 Price resistance.
 Poor Mkt.Research.
 Rush to the Mkt. with defective product.
 Ahead of time.
 Ignoring the competition.
 Over Promise.
 No adequate resource to support.

8. BENEFIT STRUCTURE ANALYSIS
 What is the actual operation?
 What ingredients are used in this operation?
 What are the attributes of the product?
 What are the benefits sought from this operation?
 How is the operation done?
 When is the work done?

9. THE NATURE OF THE PRODUCT
a. What type of product is it?
b. What is it primarily used for?
c. Are there any other applications for the product?
d. Who uses this product?
e. Why do customers use it?
f. What benefits are customers seeking?
g. Any thing customers / potential customers don’t
like about the product?
h) Does the product have any other favorable
property positions? (patent/design, etc.).
i) How is it priced/ promoted / distributed?
j) What is the competitive environment?
k) Does the company produce any related products?

10. WHAT IS PRODUCT MANAGEMENT?
 It is part of Mktg. mgt. which concerns with product
plg. & development & is now extended to Brand
building.

11. SCOPE OF PRODUCT MANAGEMENT
Prod.
Mgt.
Prod.plg.& Dev.
Corp.,Mkt.plg.
Compt.,Ind.ana.
PLC
Brand.Mgt.

12. VALUE CREATION
Oppo.
identified
Oppo
Developed
Value
Developed
Value
Added
Value
Retained