NEW PRODUCT DEVELOPMENT

INTRODUCTION
• Getting the product right is the most important activity of marketing. If
the product is not what the market wants, no amount of price adjustment,
dependable delivery, or brilliant promotion will encourage consumers to
buy it – or at least, not more than once, and very few companies produce
products which are ‘once-in-a-lifetime’ buys.
• On the other hand, if the product produced does satisfy the consumer, the
purchase is likely to be repeated. The purchaser may buy other products
offered by the same company and recommend its products to other
consumers.
• Management’s decisions about the products to be offered among the
most important of those affecting a company’s future. Product decisions
are more basic than decisions about other marketing variables.
• After segmenting the market, a particular company, choosing its
target customer groups, identifying their needs, and determining
its desired market positioning, is ready to develop and launch new
products desired by its customers. In the new product
development process, the marketing department plays a vital role.
• The marketing department should actively participate with other
departments in each stage of the new product development
process rather than leave it to the Research and Development
department.
• Developing a new product begins with thoroughly evaluating the
marketplace to determine consumer needs and wants. Based on
that evaluation, the marketing executive starts planning strategies
that will best fit those needs and yield a reasonable profit.
 SIGNIFICANCE OF NEW PRODUCT
DEVELOPMENT
• Value for customers
The very first and foremost reason for any new product development is to
provide value to the customers. Without this, there is no reason to trait your
money for new devices. However, if the product or service offers great value,
then the customers feel interested in trying it. The increasing demands of
customers for innovation & new technologies keep the companies growing.

• Society betterment
There are many instances where new products helped in society
improvement beyond any level. The new features or technology has been
proved to be a boon for society. Also with the need for new product
development practice, companies hire new resources which help the society
in terms of employment and income generation.
• Growth of the Company
New services or products are the lifelines of any company. The new
products and services are created by all size companies for the growth
and improvement of their business. New products help in company
sustainability by offering new value to its customers which generates
additional revenues. Many of the new products are at an incremental
improvement stage for past many years, with some new features
incorporated in it.

• Improved performance
Many times, even after spending thousands of dollars on promotion or
marketing your product, a business owner faces disappointment because
of poor quality of the product. Hence, you must look at your production
and keep updates for the need of new products in the market