Chapter 1.

Classification of New Products

Based on Service Development

 *Products that are really innovative These are strictly unique in nature. These products might not have been in existence till they were introduced.

Based on Service Development

Based on Service Development

Replacements that are significantly different These are changes in existing products in terms of form, functions and most importantly benefits provided.

Based on Service Development

*Imitative Products- These are new to the company but not to the market.

Based on Booz, Allen Hamilton Framework

Based on Booz, Allen Hamilton Framework

Technological Breakthroughs/New to the world products- These products are absolutely new to the world and will create their own market.

Based on Booz, Allen Hamilton Framework

Significant improvements- these products are not born out of a major invention but carry significant improvements over their existing counterparts. They offer superior performance and hence replace existing products.

Based on Booz, Allen Hamilton Framework

*Modified Products- these products are modifications of the existing products. These may include new flavors, new perfume, new package, a revised size etc.

Based on Booz, Allen Hamilton Framework

Products new to company these products are new to the company but not to the market.

Based on Booz, Allen Hamilton Framework

*Repositioning- these products are existing products, but targeted at new segments or new markets for the reason like increasing market share, fighting local brands etc.

Based on Booz, Allen Hamilton Framework

*Repositioning- these products are existing products, but targeted at new segments or new markets for the reason like increasing market share, fighting local brands etc.

Based on Booz, Allen Hamilton Framework

*Cost Reductions - these products are functionally similar to the existing product but launched at a reduced price.

Based on Opportunities
-available for creating and marketing new products

Based on Opportunities
Desirable products are those that have high long term benefit and also give high short term satisfaction.

Based on Opportunities
Pleasing Productsare those that give high short term satisfaction but which may hurt the consumer interests in the long term.

Based on Opportunities
Salutary products are those that give high long term benefit and give low short terms satisfaction.

Based on Recent Launches

Based on Recent Launches

Marketing Innovations these are improved or altered versions of existing products. These improvements include minor modifications like packaging, branding and easy availability rather than a change in the substance of the product itself.

Based on Recent Launches

Product Improvements these products are more than just slight improvements and may carry innovations on the technology front or considerable change in the design of existing products.

Based on Recent Launches

*Technological Innovations- these are products that are really innovative and has the highest degree of innovation.

Based on the State of Purchasers Need

-this is a new product classification based on the state of the purchasers want or need.

Based on the State of Purchasers Need

Eagerly wanted products- is offered to the market to satisfy an eager want or need. It depends on the initial value of the new product to the adopter (consumer)

Based on the State of Purchasers Need

Non Eagerly wanted Product Category

Based on the State of Purchasers Need

High Value- Products that are ready to be obtained immediately when becomes available.

Based on the State of Purchasers Need

Intensive informative search consumer are willing to take great efforts to spend time to search for information about its content, available time and date etc.

Based on the State of Purchasers Need

*Reasonable Priceconsumers will tolerate it in case of unsatisfactory performace

Based with Regard of the Corporate Strategy

Remerchandising is a modification of name, promotion, price, packaging and / or distribution while maintaining the features of the basic product

Based on Service Development

Based on Service Development

Major innovations are new services for markets that are but yet defined.

Based on Service Development

*Start up business consist of new services for a market that is already served by existing products and meet the same generic needs.

Based on Service Development

New services for the currently served market represent attempts to offer existing customers the organization a service that was not previously available from the company, although it may be available in other companies

Based on Service Development

Service line extensions represent augmentations of the existing service line.

Based on Service Development

*Service improvements are perhaps the most common type of service innovation.

Based on Service Development

Style Changes represent the most modest service innovations although they are often highly visible and can have significant effects on buyer perceptions, emotions and attitudes.

New Product Strategy

New Product Strategy- is a statement that identifies the role of a new product and what is expected to play in achieving corporate and marketing goals.