These are the products which consumer
These are those products that a customer
buys less frequently.
These are the products with unique
characteristics or brand identification for which
a significant group of buyers is willing to make
a special effort.
These are those goods/services that are
bought by organizations or individuals for
further processing or for use in conducting a
These are classified in 3 types.
1. Materials and parts
2. Capital items
3. Supplies and services.
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.
Reasons for bad response to a
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.
Concept Development &
It is a systematic search for new product ideas.
Sources of idea generating are:
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
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.
3.Expected sales, Market shares& profit goals.
• Business Analysis
It is a review of sales, costs, and profit projections for a
new product to find out whether these factors satisfy the
• Product Development
Engg Dept& R&D develops this concept into physical
• Test Market
1.Standard Test Markets.
2.Controlled Test Markets.
3.Simulated Test Markets.
-Introduction of a new product into market
-When to launch
-Where to introduced
Prof. A.A. Patil Sir