new product

Examples of new product in the following topics:

• The Need for New Products

  • In dynamic markets companies must constantly introduce new products and services to keep up with changing consumer wants and needs.
  • Continuous decisions must be made about whether new products should be added (and whether old products should be removed).
  • Organizations invest a lot of money to create new products that perform effectively.
  • The ultimate success of new products depends on consumers accepting them.
  • 'Innovation' is used here to describe an idea or product that is new to the company.

• Ansoff Opportunity Matrix

  • Product development (existing markets, new products): McDonald's operates in the fast-food industry, but it frequently markets new types of burgers.
  • Product development - This growth strategy uses new products in the existing market.
  • Diversification - This strategy creates completely new opportunities for the company by creating new products and new markets.
  • Another way is to expand sales through new uses for the product.
  • Will it require the introduction of new or modified products?

• Screening

  • It is important for businesses to continually devise new products, as products do not last forever.
  • The screening step is a critical part of the new product development process.
  • There are two common techniques for screening new product ideas.
  • Both involve the comparison of a potential product idea against the criteria for acceptable new products.
  • These scores are then multiplied by their respective weights and added to yield a total score for the new product idea.

• The Product Life Cycle

  • Product development and product life cycles go hand-in-hand.
  • It is important that businesses continually develop new products to replace those that are declining.
  • A company must succeed at both developing new products and managing them in the face of changing tastes, technologies and competition.
  • A good product manager should find new products to replace those that are in the declining stage of their life cycles; learning how to manage products optimally as they move from one stage to the next.
  • Especially if the product is new on the market, users may not be aware of its true potential, necessitating widespread information and advertising campaigns through various media.

• Product Advertising

  • The stage of the Product Life Cycle (PLC) often determines the type of advertising that is used by advertisers for a particular product.
  • This form of advertising is designed to stimulate primary demand for a new product or product category (McDaniel et al, 2006).
  • It is heavily used in the introductory stage of product life cycle when a new product is launched.
  • This type of product advertising provides in-depth information of the benefits of using a product or service.
  • The type of product advertising a company chooses depends on where the product is in its life cycle.

• When to Modify Products

  • Large companies, in particular food producers, will slightly alter a product to attract new attention to it.
  • Although product manufacturers painstakingly consider numerous details and possibilities of what could go wrong, many new designs ultimately fail or become obsolete.
  • Innovation provides much of the competitive impetus for the development of new products, with new technology often requiring a new design interpretation.
  • It only takes one manufacturer to create a new product paradigm to force the rest of the industry to catch up, fueling further innovation.
  • While some products are completely new innovations, others are simply minor modifications to existing products.

• Stages in the Product Life Cycle

  • The introduction stage of the product life cycle is when the marketing team emphasizes promotion and the product's initial distribution.
  • Nonetheless, sales may remain low because it takes time for the market to accept the new product.
  • In the growth stage of the product life cycle, the market has accepted the product and sales begin to increase.
  • The company that introduced the new product may begin to find it difficult to compete in the market.
  • In the decline stage of the product life cycle, sales will begin to decline as the product reaches its saturation point.

• Organizational Requirements for Product Development and Management

  • Product development combined with product marketing make up the product management function within an organization.
  • Product management is an organizational lifecycle function within a company dealing with the planning, forecasting, or marketing of a product or products at all stages of the product lifecycle.
  • Product development – the process of bringing new products to the marketplace – combined with product marketing, make up the product management function that oversees the launch of a company's new products.
  • A product manager investigates, selects, and develops one or more tangible products for an organization.
  • However, product management also deals with intangible products, such as music, information, and services.

• Deletion

  • Product deletion, either through product replacement or product elimination, results when products fail to meet company expectations.
  • As a result, companies are under pressure to evaluate their existing product line and to make continuous decisions about adding new products or deleting existing ones.
  • Despite significant investment in product development and market research, it is estimated that failure rates for new packaged goods range anywhere from 75% to rates as high as 90% (source: catalinamarketing.com).
  • When considering "innovative" new products, Harvard Professor John T.
  • However, if the company seeks to increase sales in the near future, then it must introduce a new group of successful products to generate additional revenue.

• Product Orientation

  • A firm employing a product orientation is chiefly concerned with the quality of its product.
  • Similar to production orientation, the product orientation of marketing focuses solely on the product a company intends to sell.
  • A firm employing a product orientation is chiefly concerned with the quality of its product.
  • Consumers recognize product quality and differences in the performance of alternative products.
  • Adopting the product orientation can be advantageous to a company, due to the fact that the cost of determining consumer preferences and the development of new products and services are minimized or eliminated because consumers are in some way captive.