new product development

NEW PRODUCT DEVELOPMENT

Presented by :- AKANKSHA SINGHEnrollment no. 35M.B.A (General) 1st semester - A

NEW PRODUCT DEVELOPMENTINTRODUCTIONDevelopment of new products is a continuous Function of

marketing management in the Present – day environment. The

products offered by a firm to the customer must be suitable to

meet the changing needs of the customers. The life of the firm

is closely related to the development of new products through

technological innovations. The technological innovations are

important to the growth of the established business as well as

to the development of new business. Businessmen must make a

detailed study of the market in relation to the products

because “NEW PRODUCT MEANS NEW PROFIT”.

New product development consists of the creation of new ideas,

their evaluation in terms of sales potentials & profitability,

production facilities 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.

WHAT IS PRODUCT DEVELOPMENT

The main task of product planners is to identify specific

customer needs & expectations & align company’s

capabilities with the changing market demands. In each

of these stages, the management must decide:

•Whether to move on to next stage

•To abandon the product

•To seek additional information

STAGES IN NEW PRODUCT DEVELOPMENT

GENERATION OF NEW IDEAS

SCREENING OF IDEAS

COMMERCIAL FEASIBILITY

PRODUCT DESIGNING & EVALUATION

TEST MARKETING

LAUNCHING THE PRODUCT

PRODUCT FAILURE

SYMPTOMSDECLINING SALES VOLUME

DECLINING PROFIT MARGINS

HIGHER THAN EXPECTED COSTS

CAUSES OF PRODUCT FAILURE

Conception of product idea may be faulty

Design of product may not match with needs of customers

Cost of production may be higher than expected cost

Market changes may not be understood properly

Inadequate promotion

Faulty pricing of the product

Poor packaging, inappropriate size, etc

Products may be introduced in the market untimely

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