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Product planning & Development.

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Presentation on theme: "Product planning & Development."— Presentation transcript:

1 Product planning & Development

2 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.

3 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

4 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.

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

6 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

7 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.

8 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

9 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.

10 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.


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