1. Abhishek Kr Singh(15003)

2. CONTENT
• NEW PRODUCT(IMPORTANCE,CATAGORIES)
• SUCCESS & FAILURE OF NEW PRODUCT
• PRODUCT DEVELOPMENT PROCESS
• PACKAGING & LABELLING
• DIFFUSION
• MANAGEMENT PUZZLE WITH
PRIZE(HANDOUTS FOR AUDIENCE)

3.  To study how products are created and managed,
with an emphasis on the product life cycle
 To detail the importance of new products and
describe why new products fail
 To present the stages in the new-product planning
process
 To analyze the growth and maturity of products,
including the adoption process, the diffusion process,
and extension strategies
 To examine product deletion decisions and strategies

4. New Product
A product new to the
world, the market, the
producer, the seller, or
some combination of
these.
New Product

5. Importance of New Product
Development
To assure a firm’s survival, new products may:
Offer differential advantages
Lead to sales growth or stability
Increase profits and control
Reduce risk through diversity
Improve distribution
Exploit technology
Utilize waste materials
Respond to consumer needs
Be a result of a government mandate

6. Categories of New
Products
New-to-the-World
New Product Lines
Product Line Additions
Improvements or
Revisions
Repositioned Products
Lower-Priced Products

7. Factors in Successful
New Products

8. Success Factors
Listening to customers
Producing the best
product
Vision of future market
Strong leadership
Commitment to new-
product development
Project-based team
approach
Getting every aspect right

9. Tips for New Product
Development
Disperse R & D around the
globe
Keep teams small and
empower employees
Flatten hierarchy
Encourage generation of
crazy new ideas
Welcome mistakes

10. Why New Products Fail
 No discernible benefits
 Poor match between features
and customer desires
 Overestimation of market size
 Incorrect positioning
 Price too high or too low
 Inadequate distribution
 Poor promotion
 Inferior product

11. Why Products Succeed and Others Fail

12. Global Issues in New-Product
Development
Single product worldwide
Modification of products
Multiple products in
multiple countries

13. STAGE OF PROCESS PURPOSE OF STAGE MARKETING INFORMATION
& METHOD USED
IDEA GENERATION DEVELOP CONCEPTS FOR POSSIBLE
PRODUCTS
IDEAS FROM
EMPLOYEES,CONSUMERS,R&D &
COMPETITORS;METHODS OF BRAIN
STORMING & FOCUS GROUP
SCREENING &
EVALUATION
SEPARATE GOOD PRODUCT
IDEAS FROM BAD ONES
INEXPENSIVELY
SCREENING
CRITERIA,CONCEPT TESTS,&
WEIGHTED POINT SYSTEMS
BUSINESS &
ANALYSIS
IDENTIFY THE PRODUCT
FEATURES & ITS MARKETING
STRATEGY;& MAKE FINANCIAL
PROJECTIONS
PRODUCT KEY
FEATURES,ANTICIPATED MARKETING
MIX STRATEGY,ECONOMIC,LEGAL&
PROFITABILITY ANALYSIS
DEVELOPMENT
CREAT A PROTOTYPE PRODUCT &
TEST IT ON LABRORATORY & ON
CONSUMERS
LABORATORY AND
CONSUMER TESTS ON
PROTYPE PRODUCTS
MARKET
TESTING
TEST PRODUCT & MARKETING
STRATEGY IN THE MARKETPLACE
ON A LIMITED SCALE
TEST MARKETS,SIMULATED TEST
MARKET(STMs),VIRTUAL REALITY
MARKET TESTING
COMMERCIALIZATION POSITION & OFFER PRODUCT IN THE
MARKETPLACE
PERPETUAL MAPS,PRODUCT
POSITIONING,REGIONAL
ROLLOUTS
CONCEPT
DEVELOPMENT &
TESTING
FINDING A GOOD
CONCEPT
CUSTOMER POINT OF
VIEW
MARKETING
STRATEGY
DEVELOPMENT
LONG TERM SALES &
PROFIT GOALS
DISTRIBUTION STRATEGY
& MARKETING BUDGET

14. PACKAGING
The General Group of Activities in Product Planning which
involves Designing & Producing the Container or Wrapper of
Product

16. 1. Promoting and Selling the Product
Attractive, colorful, and
visually appealing
packages have
promotional value
A well designed package
is a powerful selling
device because it helps
the product stand out
from its competitors
FUNCTIONS OF PACKAGING

17. 2-Defining Product Identity
Packaging is sometimes used to
promote an image such as
prestige, convenience, or
status
Can be a crucial part of the
marketing strategy,
particularly in advertising

18. 3. Providing Information
– Gives customer useful
information on:
• directions for using the
product
• its contents
• product guarantees
• nutritional value
• potential hazards

19. 4. Expressing Customer Needs
When designing packages, companies analyze customer
lifestyles and create packaging that meets their needs
for size and convenience
Packages often come in various sizes
• Family size
• Single serving

20. 5. Ensure Safe Use
Proper packaging helps to eliminate
potential injuries or misuse of a product
• Formerly glass containers are now
plastic
• Childproof caps
• Tamper resistant packages
– Blisterpacks – packages with preformed
plastic molds surrounding individual
items arranged on a backing

21. 6. Protecting the Product
– Must protect during shipping, storage, and display
– Prevent or discourage from tampering
– Prevent shoplifting
– Protect against breakage and spoilage

22. FUNCTIONS OF LABELS

23. Labeling
Label – an identification tag, wrapper,
seal, or imprinted message that is
attached to a product or its package
• Main function is to inform customers
about a product’s contents and give
directions for use
• Protects businesses from legal
liability if someone if injured while
using the product

24. Three Kinds of Labels
1. Brand Label – gives brand name and
trademark or logo
2. Descriptive Label – give information about
product use, construction, care,
performance, and other features
3. Grade Label – states the quality of a
product

25. BCG MATRIX

26. Diffusion
The process by which the
adoption of an innovation
spreads.
Diffusion

27. Categories of Adopters
Laggards
Late Majority
Early Majority
Early Adopters
Innovators

28. Marketing Implications
of the Adoption Process
Direct from
Marketer
Word of Mouth
Communication
Aids the
Diffusion Process

29. Diffusion Process for New Products

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