Question

1. What is the importance of new product development? Put your answer in the perspective of the product life cycle.

Answer 1

New Product Development (NPD )

•   NPD is the complete process of bringing a new product or services to market.
• NPD may be done to develop an item to compete with a particular product or may be done to improve an already established product.

SlideShare.New product development ppt,https://www.slideshare.net/mobile/onlyram/new-product-development-ppt

  

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New Product Development Process / Stages in product development

1. Idea generation
2. Idea screening
3. Concept testing
4. Business analysis
5. Product and market mix development
6. Product testing/ test market
7. Commercialisation
8. Post launch analysis

Need and Importance for product Development

1. Customisation of product

Product development is necessary to satisfy customer needs provide maximum value to them. customer needs are diverse in nature. in market, there are a variety of different needs. product development is necessary to customize products so as to meet the specific needs of the customers.

2. Adjust with product lifecycle

It is necessary to overcome and exploit the emerging challenges and opportunities in the different stages in the life of a product. product development takes into consideration the product attributes and benefits required during the introduction,growth, maturity and decline stage in the life of product.

3. Innovation

Innovation means renewal or improvement to bring novelty to a product. continuous innovation of the product is necessary to adapt with the economic and technological changes in the market. innovations is possible only through product development.

4. Fighting competition

Product development helps a firm to differentiate its product in the target market. as a result, the product of the firm enjoys an advantage over the product of the competitors. customer will prefer product having a unique image in the market.

5. Improving brand loyalty

Brand loyalty is the result of the successful product development efforts. when the brand loyalty increases, market shares of the brand increase and the brand becomes more popular and profitable.

6. Increasing the market share

It increases product quality and reduces product cost. this leads to rise in the sales volume of the product ultimately resulting in an increase in the market share of the product.

Product Life Cycle [ PLC ]

PLC is a concepts for analyzing the different stages in the life of a product. this concept observes and compares the life of a product with the life of living beings.

1. Introduction

• This stage is the commercialisation or launchinging satage of a new product.
• This stage is characterized by intense marketing efforts of the firm to promote the newly introduced product in the market.  

2. Growth

• This is the beginning of the growth stage of a  product .
• As a result, sales of the product gradually increasing and competition also developed.
• products become more profitable during this stage.

3. Maturity

• At this stage, the sales reach its maximum point and maintaing a steady stage.
• There is no way to grow further.
• The product has penetrated the market fully

4. Decline

• This is the stage of characterized by continuous decline in sales volume.
• Economic and production conditions become unfavorable.

Dr. Sreedhar P. Nair, Dr. Deepa Matthew.MARKETING MANAGEMENT.( 2019 ).Prakash publication