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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
THANK YOU