The product has the following considerations:
1. New product planning
2. New product development
4. Life cycle
5. Product differentiation
6. Making new product successful
1. New Product Planning
A new product planning considers whether something new is to be invented or some modification made into the existing product, or what product to be added on the existing product line. Planning determines the direction of the company.
The planning also takes into account how to meet the challenges of new forms of competition and the changes that are coming up endlessly without a break. New product refers to the following:
a. New invention
b. Changes in existing products
c. Adopting a product already invented
d. Introducing own product on a new market
Since every product has a definite and limited life it is necessary for the manufacturer to keep changing and improving his product to make them new in order to survive. Past experiences show that all those companies have vanished which failed to make their products new.
2. New Product Development
New product development refers to the evolution of a new product that the company wants to introduce on the market. Manufacturers follow different methods to meet this end, e.g.
a. Research and study
b. Establishment of committees or departments responsible for new product development
c. Appointment of new product mangers
The new product development must take into account the following:
i) Effect on the goodwill of the company
ii) Impact on the company’s product mix
iii) Outcome on the product policy
iv) Impact on the company as whole
The beginning of a new product depends upon invention or innovation which is the result of human thinking, experience, and creativity. Invention or innovation of a product follow these phases:
a. Conceiving a new idea
b. Adjusting the idea
c. Conducting a research
d. Preparing a feasibility report
e. Test marketing
f. Manufacturing on commercial basis
4. Life Cycle Every product has a certain and limited life after the expiry of which it becomes obsolete and is abandoned. It passes through 5 phases in its life;
e. The end
The company makes efforts to prolong the life cycle through its marketing strategy. It continues improving or changing the product in style, shape, size, color, or taste etc. It also undertakes advertising to refresh the memory of its consumers. Examples to this effect include the introduction of new models of cars, computers, and televisions with improved functions. Once the old product is transformed into new one it is resurrected and its life cycle starts anew. There are other methods also to make the product new, i.e., to improve the life cycle of the product.
i. Change in the price
ii. Modifying the packing
iii. Aggressive advertising
The whole world is always changing in all respects. The change never stops. It is also true for the marketing and markets. Fashions, technology, science, competition, customer’s habits, and life styles are all changing eternally. The nonstop changes render the existing product, old, outdated, or obsolete. Compare a twenty-year old audio system with the existing one. A sea change is in place.
5. Product Differentiation
Product differentiation is a useful technique to meet the severe competition. A large variety of brands of the same product is available on the market confusing customer what to chose from among them. Product differentiation has solved their problem and rather helps them in making buying decisions easily.
Through product differentiation the company brings about certain changes as in colors, styles, designs, functions, packing, models, tastes, flavors, brands, models, power (horse power) of the product that makes it look different from or even better than the competitive products which are basically the same. Even changing the price or naming a separate brand can differentiate the product. Examples are vitamin tablets, refrigerators, and cars which are sold under different brand names. Another example is the tooth paste whose manufacturers make it different by different packing, sizes, brands, flavors, colors, and prices, and some of their producers have created their monopoly on the market, although basically all the tooth pastes are the same.
6. Making New Products Successful
Companies survive on the success and popularity of their products. To make the product acceptable the following success criteria should be considered:
a. Good performance in all respects of the product
b. Right color, size, weight , design matching the environment.
c. Pure ingredients and elements
d. Durability of the product
e. Acceptability to all competitive markets
f. Right cost, price, and profit
g. Usefulness and user’s friendliness
i. Continuous supply of the raw material