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THE MEANING OF “PRODUCT”

✔A product is a set of tangible and

intangible attributes, which include
packaging, color, price, quality, brand
name and manufactures and retailers
services , all these that buyer accept as a
want satisfaction.

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 Product
quality Physical
Seller’s characteristics
services of goods

Seller’s
Price
reputation

Color Brand

Product
warranty Packaging

Design

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 Product Classification
On the basis of purpose for which they
are bought.

Consumer product Business

Product
Goods or Services Products which
which are bought purchased for
by final further processing
consumer for to produce other
consumption. products 5
 What is new Product
A new product is a product which is totally new in concept.
Any product which is perceived by the customer as being
new.
A new product can be categorize into :

✔Truly ✔Innovated
new product from
product. the existing
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one.
Reasons for new product developing

✔Computation:
To maintain or to gain the competitive image in the
market.
Change the consumer needs:
To brings the changes in the consumer needs

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Continue….
Technology:
Technology that in the favors to develop or to
take the risk of new product development

Good Image:
Company good image in the Market ( in
the mind of customer) to take the risk of
new product development.

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Methods used for developing new product

A firm can obtain new product through to

ways

– By
✔ By R &D Cell: Acquisition
Developing new product By this a firm
through R&D , either buy an other
from entirely new product firm wholly or
or bringing innovation in get licensee
the existing products. in order to 8
obtain new
Process of new product development

New product are develop through a

systematic process ,in which first the
product are find out and then it grows.

The whole process can be divide into many

stages, some Seven stages are given
below.

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Stage#1 Idea Generation

✔The starting stage for new product

development in which typically an
organization develop a number of ideas for
new product
✔Such types of alternatives idea are develop
into a meeting called brain storming session

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 Continue…

✔Sources for idea generation

The organization takes new ideas from two
sources
External Sources:
✔ Customer
Questions &
Internal sources: Complaints
R&D Cell
✔ Distributor
Employees feed
Feed backs
backs
✔ Compotators
activates e.g. their
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Ads as a clue
Stage#2 Idea Screening
✔In this step one idea is selected from the
alternative idea of the first stage
✔The basis for best idea are:
Utilization
How much that product will be able by the
Target customer with the sense of that
product utilization.

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Resources
Which type, quality and at which price
that resources will be available.
Ethical Aspect
What will be the responses of the society to
whom that product will launch.

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Stage#3 Product Concept Development

✔Once the idea is selected in the idea

screening stage ,then in this stage the
concept of product is developed.

✔Some time alternative concept of the same

product are developed according to
customer needs ,wants etc

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Stage#4 Mrkg Strategy Development
✔Developing strategy that how to
introduce the product into market.
✔Marketing strategy consisting 3 statements
Described the target market
Price ,Channel of distribution and
Budget
Goal of the organization,

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Stage#5 Business
Analysis
✔Analysis the product with the business point
of view. This analysis involve a review of
the sales, cost ,profit.
✔The main aim of business analysis is to find
out whether the product satisfies the
company objective or not.

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Stage#6 Product
Development
✔In this stage the product concept is came
into its physical form, then this product is
presented to the market for testing.

✔Testing Marketing help the organization in

creating financial decision about whether to
launch that product in the market or not..

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Stage#7
Commercialization
✔After successful passing the product from
the “ testing market” then the firm properly
introduce that product into market.

✔ Note Aftercommercialization Stagethen

that product's life cycle ( PLC) begin.

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