Product planning & Development

What is a product? It is a set of basic attributes assembled in an identifiable form. In marketing we need a broader definition of a product to indicate that customers are not really buying a set of attributes ,but rather benefits that satisfy their needs. So definition of a product is “it is a set of tangible & intangible attributes, which may include packaging,color,price quality plus the seller ‘s service s & reputation.

Development of new products There are numerous connotation of new product, but we will focus our attention on three distinct categories of new product: 1.Products that are really innovative 2.Products that are significantly different 3.Iniative products

1.Products that are really innovative: e.g A security device that electronically compares a photo of a person’s face against a security database to assure proper identification. 2.Products that are significantly different: disposable lenses. 3.Iniative products: That are new to particular company but not new to the markets.. E.g Digital calulators,handy cams etc.

Prototype development Stages in the development process: Business Analysis Idea generation Screening of ideas Prototype development Market Tests Commercialization

At each stage ,management must decide whether to proceed to the next stage ,abandon the product, or seek additional information. 1.Generating new product ideas: A system must be designed for stimulating new ideas within an organization & then reviewing them promptly . 2.Screening ideas: New product ideas are evaluated to determine which one should go for further study

3.Business analysis: A surviving idea expanded into a concrete business proposal. During the stage of business analysis, management Identifies product features. Estimates market demand Competition Product profitability Establishes a program to develop the product.

4.Prototype Development: If results of business analysis is favorable ,then prototype (trial model) of the product is developed .eg: Apple computers puts new models through various durability tests that range from pouring a soft drink onto the computers etc. 5.Market Tests: Unlike the internal tests conducted during prototype development ,market tests

Involve actual consumers. A new tangible product may be given to a sample of people for use in their households. Following the trial ,users are asked to evaluate the product. This stage is often entails test marketing 6.commercialization: In this stage full scale production & marketing programs are planned & the implemented.

Up to this point in development management has virtually complete control over the product. however once the product is born & made available for purchase, the external competitive environment becomes a major determinant of its destiny.