Home | ARTS | Marketing Management | Over View Of New Products Development Process - New Products Development Strategies

MARKETING MANAGEMENT - New Products Development Strategies

Over View Of New Products Development Process - New Products Development Strategies

   Posted On :  18.06.2018 09:42 pm

New products development consists of the certain of new ideas, their evaluation in terms of sales potentials and profitability, production facilities, resource available, designs and production testing and marketing of the products.

Over View Of New Products Development Process
 
New products development consists of the certain of new ideas, their evaluation in terms of sales potentials and profitability, production facilities, resource available, designs and production testing and marketing of the products.
 
The main task of the product planners is to identify specific customer needs and expectations and align company’s capabilities with the changing market demands. In each of these stages, the management must decide :(a) whether to move on to the next stage, (b) to abandon the product, or (c) to seek additional information.
 

Routes Of New Products Development

 
 

Transfer of Technology

 
New Products have often been launched, based on new technology, either acquired from the parent company or with foreign collaboration. Launch of the personal computer or photocopying machine is a move in this direction.

 Diversification

 
 
Sometimes companies have entered into new lines of business and catered to altogether new markets for the first time.
 
ITC’s decision to enter into hotels, paperboards, edible oil, and tissue paper is a diversification strategy. Likewise, Shaw Wallace diversified to real estate business. Bata has successfully launched many sportswear, fashion jeans and apparels.
 
In general, diversification strategy tries to reduce the dependence of a company on a limited line of products. At times, companies find the new business more profitable than their former activities.
 

Additions to Existing Product Lines

 
 
New product lines and brand extensions have sometimes supplemented a company’s existing business.
 
Videocon’s entry in to washing machines and music systems form color televisions is a case in point. Similarly, as a business group, Godrej’s strategy to expand its product range from consumer non-durables like toiletries to durable such as refrigerators, cupboards and even office equipments is a classic example of product line extension.
 

Improvements / Revisions in Existing Products

 
 
New products that offer superior performance and replace existing products are another way of entering the market.
 

Cost Reductions

 
 
New products that provide similar performance at lower cost e.g., Nirma detergent, Tata – 407 LCV.
 

Products Relaunch

 
Sometimes old products have been relaunched with minor improvements and targeted at completely new markets or consumer segments.

 Significance Of New Product Development

 
 
Whatever may be nature of operation of a concern, product planning and development is necessary for its survival and growth in the long run. Every product has a life cycle and t become obsolete after the completion of its life cycle. Therefore, it is essential to develop new products and alter or improve the existing ones to meet the requirements of customers. One of the most common products – planning problems relates to the addition of new products to the existing product line.
 
Addition of new products involves generation of new product ideas, appraisal of various possibilities, economic analysis, product development, product testing, test marketing and developing markets. Another important problem of product planning is modification or elimination of existing products.
 
The need for continuous of the product is great because society’s needs are always changing and improved products must be introduced to fulfill them. All products have certain deficiencies, as they are the result of great many compromises. The perfect product has yet to be made. Research makes possible the reduction of these deficiencies and brings about improved products.
 

New Product Development Process

 
 
The developers must be conscious of the probabilistic nature of their endeavors. New product development endeavors are complex, strongly dependent on diversified human resources and significantly affected by factors and events beyond the developers control. Thus, the belief that the implementation of a mechanical methodology can assure success is an illusion and at times a delusion.
 

Sources Of New Product Ideas

 
 

Customers:

 
 
Customers are sometimes able to discuss their requirements and offer ideas that will meet those problems.

 
 

 Competitors:

 
 
Systematic comparison or bench marking with the competition may offer good source of new product ideas.
 

Distributors:

 
 
Suggestions from distributors and their problems in handling present products often thrown up new ideas.
 

Creative techniques:

 
 
Brainstorming, focused interviews and technological forecasting enable one to find out the latent capabilities of innovations.
 

External world:

 
 
The external world, especially the use of their technology, offers a good source of ideas for implementation in the home market.
 

Research and development:

 
Create new product ideas through R&D.From initial generation of ideas to full commercialization and well into the mature age of a product, the developers should strive to control what is in their power to control a do to monitor what is beyond their control. No single facet of new product development can assure success. Few facets are so deter mental that they are cannot be at least alleviated. Because of the probabilistic nature of new product development, planning and assessments must consider long-term repercussions. 
Tags : MARKETING MANAGEMENT - New Products Development Strategies
Last 30 days 468 views

OTHER SUGEST TOPIC