PRODUCT AND NEW PRODUCT STRATEGY

PRODUCT

“It is anything that can be offered to the market for attention, acquisition, use or consumption that might satisfy a want or need”

A product can be in goods or in service.

Classification of products

1. Consumer product.2. Industrial product

Consumer products

Convienence ProductThese are the products which

consumer frequently buys.

Shopping Products These are those products that a

customer buys less frequently.

Specialty productThese are the products with unique

characteristics or brand identification for which a significant group of buyers is willing to make a special effort.

Industrial ProductThese are those goods/services that are bought by

organizations or individuals for further processing or for use in conducting a business.

These are classified in 3 types.1. Materials and parts2. Capital items3. Supplies and services.

LEVELS OF PRODUCT

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, license2. By coming out with new product.

Reasons for bad response to a product

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.

New Product Development Process

Idea Screening

Concept Development & testing

Marketing Strategy

Product Development

Idea Generation

Business analysis

Test marketing

Commercialization

Idea GenerationIt is a systematic search for new product ideas.

Sources of idea generating are:1.Internal source2.External Source

Idea screeningCompanies 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 competition.

Concept Development & TestingA detail Version of new product idea stated in

meaningful consumer terms.

Marketing Strategy DevelopmentIt involves 3 things

1.Description of target market.2.Product positioning.3.Expected sales, Market shares& profit goals.

• Business AnalysisIt is a review of sales, costs, and profit

projections for a new product to find out whether these factors satisfy the company objectives.

• Product DevelopmentEngg Dept& R&D develops this concept into

physical product.

• Test Market1.Standard Test Markets.2.Controlled Test Markets.3.Simulated Test Markets.

Commercialization-Introduction of a new product into market-When to launch-Where to introduced

Presented By:Ankit Porwal

Guided By:Prof. A. A. Patil Sir