W PRODUCT DEVELOPME

CONTENT
NEW
PRODUCT(IMPORTANCE,CATAGORIES)
SUCCESS & FAILURE OF NEW
PRODUCT
PRODUCT DEVELOPMENT PROCESS
PACKAGING & LABELLING
DIFFUSION
MANAGEMENT PUZZLE WITH
PRIZE(HANDOUTS FOR AUDIENCE)

OBJECTIVES

To study how products are created and

managed, with an emphasis on the
product life cycle
To detail the importance of new
products and describe why new
products fail
To present the stages in the newproduct planning process
To analyze the growth and maturity of
products, including the adoption
process, the diffusion process, and
extension strategies
To examine product deletion decisions
and strategies

New Product
New
New Product
Product
A product new to the
world, the market, the
producer, the seller, or
some combination of
these.

Importance of New Product

Development
To assure a firms survival, new
products may:
Offer differential advantages
Lead to sales growth or stability
Increase profits and control
Reduce risk through diversity
Improve distribution
Exploit technology
Utilize waste materials
Respond to consumer needs
Be a result of a government mandate

Categories of New
Products

Factors in Successful
New Products

Benefit to large number of

people

Success Factors
Listening to customers

Strong leadership

Producing the best

product

Commitment to newproduct development

Vision of future market

Project-based team
approach

Getting every aspect right

Tips for New Product

Development
Disperse R & D
around the globe
Keep teams small
and empower
employees
Flatten hierarchy
Encourage
generation of crazy
new ideas
Welcome mistakes

Why New Products Fail

No discernible benefits
Poor match between features
and customer desires
Overestimation of market size
Incorrect positioning
Price too high or too low
Inadequate distribution
Poor promotion
Inferior product

Why Products Succeed and Others Fail

Global Issues in New-Product

Development

Single
Singleproduct
productworldwide
worldwide
Modification
Modificationof
ofproducts
products
Multiple
Multipleproducts
productsin
in
multiple
multiplecountries
countries

CONCEPT
DEVELOPMENT &
TESTING

FINDING A GOOD
CONCEPT

CUSTOMER POINT OF
VIEW

MARKETING
STRATEGY
DEVELOPMENT

LONG TERM SALES &

PROFIT GOALS

DISTRIBUTION
STRATEGY &
MARKETING BUDGET

PACKAGING
The General Group of Activities in Product Planning
which involves Designing & Producing the Container
or Wrapper of Product

FUNCTIONS OF PACKAGING
1. Promoting and Selling the Product
Attractive, colorful,
and visually
appealing
packages have
promotional value
A well designed
package is a
powerful selling
device because it

2-Defining Product
Identity
Packaging is sometimes
used to promote an image
such as prestige,
convenience, or status
Can be a crucial part of the
marketing strategy,
particularly in advertising

3. Providing Information
Gives customer useful
information on:
directions for using the
product
its contents
product guarantees
nutritional value
potential hazards

4. Expressing Customer Needs

When designing packages, companies analyze
customer lifestyles and create packaging that meets
their needs for size and convenience
Packages often come in various sizes
Family size
Single serving

5. Ensure Safe Use

Proper packaging helps to eliminate
potential injuries or misuse of a
product
Formerly glass containers are
now plastic
Childproof caps
Tamper resistant packages
Blisterpacks packages with
preformed plastic molds
surrounding individual items
arranged on a backing

6. Protecting the Product

Must protect during shipping, storage,
and display
Prevent or discourage from tampering
Prevent shoplifting
Protect against breakage and spoilage

FUNCTIONS OF LABELS
IDENTIFIES
GRADES
DESCRIBES
PROMOTES
LEGAL STIPULATION(MRP,EXPIRY DATE)

Labeling
Label an identification tag,
wrapper, seal, or imprinted
message that is attached to a
product or its package
Main function is to inform
customers about a products
contents and give directions for
use
Protects businesses from legal
liability if someone if injured while
using the product

Three Kinds of Labels

1. Brand Label gives brand name and
trademark or logo

2. Descriptive Label give information

about product use, construction, care,
performance, and other features
3. Grade Label states the quality of a
product

BCG MATRIX

Diffusion

Diffusion
Diffusion

The process by which the

adoption of an innovation
spreads.

Categories of Adopters
Innovators
Early Adopters
Early Majority
Late Majority
Laggards

Marketing Implications
of the Adoption Process
Word
Word of
of Mouth
Mouth
Communication
Communication
Aids
Aidsthe
the
Diffusion
DiffusionProcess
Process

Direct
Directfrom
from
Marketer
Marketer

Diffusion Process for New Products

KEY TO
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