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Product and new product strategy


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Product and new product strategy

  2. 2. PRODUCT “It is anything that can be offered to the market for attention, acquisition, use or consumption that might satisfy a want or need” A product can be in goods or in service.
  3. 3. Classification of products 1. Consumer product. 2. Industrial product
  4. 4. Consumer products
  5. 5. Convienence Product These are the products which consumer frequently buys. Shopping Products These are those products that a customer buys less frequently.
  6. 6. Specialty product These are the products with unique characteristics or brand identification for which a significant group of buyers is willing to make a special effort.
  7. 7. Industrial Product These are those goods/services that are bought by organizations or individuals for further processing or for use in conducting a business. These are classified in 3 types. 1. Materials and parts 2. Capital items 3. Supplies and services.
  9. 9. New product Development The development of original products, product improvement, product modifications and new brand through the firms own R & D efforts. A company obtains new products in 2 ways. 1. By acquisition by buying a whole company, patent, license 2. By coming out with new product.
  10. 10. Reasons for bad response to a product Idea could be good but company might have over looked the market size. The product may be poorly designed. It might not be properly positioned. It could have been launched at a wrong time. It might have been highly priced. It might be poorly advertised. The competitors might fight back harder.
  11. 11. New Product Development Process Idea Screening Concept Development & testing Marketing Strategy Product Development Idea Generation Business analysis Test marketing Commercialization
  12. 12. Idea Generation It is a systematic search for new product ideas. Sources of idea generating are: 1.Internal source 2.External Source Idea screening Companies ask executives to write new product ideas on a form. It should describe the product, the proposed customer value preposition, the target market and the competition.
  13. 13. Concept Development & Testing A detail Version of new product idea stated in meaningful consumer terms. Marketing Strategy Development It involves 3 things 1.Description of target market. 2.Product positioning. 3.Expected sales, Market shares& profit goals.
  14. 14. • Business Analysis It is a review of sales, costs, and profit projections for a new product to find out whether these factors satisfy the company objectives. • Product Development Engg Dept& R&D develops this concept into physical product. • Test Market 1.Standard Test Markets. 2.Controlled Test Markets. 3.Simulated Test Markets.
  15. 15. Commercialization -Introduction of a new product into market -When to launch -Where to introduced
  16. 16. Presented By: Ankit Porwal Guided By: Prof. A.A. Patil Sir