Asmika

Shrestha

Anuradha
Ujwal Maiya

Lama

Dhoj Koju

In this chapter, Well cruise into two additional product, topics:

Developing new products: New products are the livelihood of an organization. However, new product development is risky ,and many new products fail. So, the first part of this chapter is a process of finding and growing successful new products. Once introduced products to enjoy a long n happy life. Managing Products through lifecycle: Every product passes through several life-cycle stages and that stage poses new challenges requiring different marketing strategies and tactics.

 Idea

Generation Idea Screening Concept Development and Testing Marketing strategy Development Business Analysis Product Development Test Marketing Commercialization

IDEA GENERATION

It is the Systematic search for new product ideas. A company typically has to generate many ideas to find a few good ones. Its purpose is to create large number of ideas. Sources of new-product ideas include internal sources i.e. customers, competitors, distributors, suppliers and others. Good new-product ideas also come from watching and listening to customers.

IDEA SCREENING

Screening New-product ideas in order to spot good ideas and drop poor ones as soon as possible. It makes some rough estimation of market size, product price, development time and cost, manufacturing costs and rate of return.

CONCEPT DEVELOPMENT AND TESTING:

The idea that consumer will favour products that offer the most quality, performance and features and that the organization should therefore devote its energy to making continuous products improvements. Testing new products concepts with a group of target consumers to find out if the concepts have strong consumer appeal.

MARKETING STRATEGY DEVELOPMENT:

Designing an initial marketing strategy for a new product based on the product concept.

BUSINESS ANALYSIS:

A review of the sales, costs and profit projection for a new product to find out whether these factors satisfies the companys objectives

PRODUCT DEVELOPMENT:

Developing a product concept into a physical product in order to ensure that the product idea can be turned into a workable product. In business and engineering, new product development (NPD) is the term used to describe the complete process of bringing a new product to market. A product is a set of benefits offered for exchange and can be tangible (that is, something physical you can touch) or intangible (like a service, experience, or belief).

TEST MARKETING:

The stage of a new product development in which the product and marketing program are tested in more realistic market settings. It gives management the information needed to make a final decision about whether to launch the new product into the market.

COMMERCIALIZATION

The process by which a new product or service is introduced into the general market. Commercialization is broken into phases, from the initial introduction of the product through its mass production and adoption. It takes into account the production, distribution, marketing, sales and customer support required to achieve commercial success.

In this process the most money will have to be spent for advertising, sales promotion, and other marketing efforts.

When the company has to decide on the introduction timing When facing the danger of cannibalizing the sales of the companys other products, if the product can be improved further, or if the economy is down, the launch should be delayed. Where the company has to decide where to launch its products It can be in a single location, one or several regions, a national or the international market. This decision will be strongly influenced by the companys resources, in terms of capital, managerial confidence and operational capacities.
To Whom the primary target consumer group will have been identified earlier by research and test marketing These primary consumer group should consist of innovators, early adopters, heavy users and/or opinion leaders. This will ensure adoption by other buyers in the market place during the product growth period.

A new-product development approach in which one company department works to complete its stage of the process before passing the new product along to the next department and stage. Companies organize their new product development process into the orderly sequence of steps i.e. starting with the idea generation and ending with commercialization. These orderly step by step processes can be too slow. In this fast changing, highly competitive markets, such slow product development can result in product failures, lost sales and profit, and crumbling market positions.

Product Life-Cycle Strategies means the course of a products sales and profits over its lifetime.
It involves five distinct stages: Product development Introduction Growth Maturity Decline

Product Development: This stage begins when the company finds and develops a new-product idea. Here sales is zero

Introduction:

It is a period of slow sales growth as the product is produced in the market. The product life-cycle stage is that in which the new product is first distributed and made available for purchase. Here the profit is low because of the low sales and high distribution and promotion expenses.

Growth:

If the new product satisfies the market, it will enter the growth stage. It is a Product life-cycle stage in which a products sale starts climbing. Here the sales is very high and also the profit is highly realized.

Maturity: It is a stage where there is slowdown in sales growth because the product has achieved acceptance by most potential buyers.

Decline: This is a stage when the sales fall and profit drops. Sales decline for many reason including technology advances, shift in consumer tastes and increased competition.