This document discusses the key aspects of product development and marketing. It defines product development as the process beginning with identifying a market opportunity and ending with the production, sale, and delivery of the product. Some important factors that determine the success of product development include product quality, cost, development time/cost, and the development capabilities gained. The document also outlines the different types of products and services, as well as the key elements of the marketing mix - product, price, place, promotion. It describes the different stages of product development from idea generation to testing and launch.

1. Lecture No.1
Danial Mubarak Sandhu
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2.  “Product development is the set of activities beginning with
the perception of a market opportunity and ending in the
production, sale, and delivery of the product”
Ulrich & Eppinger, 2002

3.  Customer needs, wants, and demands
 Market offerings
 Value and satisfaction
 Exchanges and relationships
 Markets

4.  Needs: Physical—food, clothing, warmth, safety
Social—belonging and affection
Individual—knowledge and self-
expression
 Wants: Form that needs take as they are shaped by culture and
individual personality.
 Demand: Wants backed by buying power.
Exchangeis the act of obtaining a desired object from someone by
offering something in return.

5. CHARACTERISTICS OF SUCCESSFUL
PRODUCT DEVELOPMENT
 Product quality
 How good is the product?
 Product cost
 What is the capital equipment cost and unit production cost?
 Development time
 How quickly did the team complete the effort?
 Development cost
 How much did the firm have to spend to develop the
product?
 Development capability
 Are the team and firm better able to develop other products?

6.  Product Oriented: Business in which the main focus activity is
on the product itself. Eg: agricultural tools, fresh foods
 Market Oriented: Business in which market research is
carried out to find out consumers wants before a product is
developed.

7.  It is the management process which identifies customer wants,
anticipates their future needs and the goes about satisfying
them profitabily.

8.  Product
 Packaging
 Price
 Place
 Promotion

9.  Consumer goods: These are goods which are consumed by
people. Eg; food, clothing, furniture.
 Consumer service: These are services that are produced for
people. Eg; repairing cars, hairdressing and education
 Producer goods: These are goods that are produced for other
businesses to use. They are bought to help with the production
process. Eg; Lorries, machines and components.
 Producers service: Services that helps other businesses. Eg;
accounting, insurance and advertising

10. Producing the right product at the right price is an important
part of the marketing mix

11.  The product needs to satisfy consumer wants and needs. If it
does not then it will not sell.
 The product also needs to be of the right quality so the price is
what consumers are willing to pay.
 The costs of production must enable a price to be set that will
produce a reasonable profit.
 Design of the product is also very important along with the
quality to create a brand image.

13.  Employees
 Customer suggestions
 Competitors products
 Research & Development
 Sales Department

14.  Select the best idea for further research.
 Need to decide which ideas to abandon and which to research
further. Some products may be too expensive to manufacture,
other products might not sell well

15.  Assess how large they think the sales would be and the likely
size of the market share.
 A break even analysis
 Consider the development costs

16.  A prototype allows the production department to see how a
product could be manufactured.
 It also allows them to foresee any problems with the
manufacturing process.

17.  Launch the product in one part of the country to test the
market.
 Identify if there is any error in the product.
 If the product does not sell well it can be altered or scrapped
without too much harm to the company.

18.  The product is launched on to the main market.

19.  Choose 5 products that you have bought.
1. Do you think they have been successful? Why?
1. Try to analyze the success of each product.