The document discusses product decisions and the new product development process. It covers the following key points in 3 sentences:
1. It defines the concepts of products, services, consumer products, industrial products, and the different levels of a product. 2. It outlines the individual product decisions that must be made including attributes, branding, packaging, labeling, and support services. 3. It then details the 7 step new product development process of idea generation, screening, business analysis, prototype development, testing, commercialization, and launch.
2. PRODUCT CONCEPT
- Product is anything that can be offered in a market
for attention, acquisition, use, or consumption that might
satisfy a need or want.
It can consist of pure tangible goods e.g. soap,
toothpaste, food, etc.
- A product is a combination of physical attributes say,
size and shape; and subjective attributes say image or
"quality". A customer purchases on both dimensions.
3. SERVICE
- Service is a form of product that consists of
activities, benefits, or satisfactions offered for sale
that are essentially intangible and do not result in
ownership
• The other extremes are pure services which are non-
tangible e.g.
• banking, medical, insurance, telephone
• Doctor’s exam
• Legal advice and etc.
5. Consumer products
-Consumer Products are products and services for
personal consumption.
-These are classified as :
a) Convenience products
b) Shopping products
c) Specialty products
d) Unsought products
6. INDUSTRIAL/BUSINESS
PRODUCTS
- Industrial Products are products purchased for
further processing or for use in conducting a
business.
-These are classified as :
a) Materials and parts
b) Capital items
c) Supplies and services
7. PRODUCT LEVELS
1. Core customer value: stands at the center of the
total product. It represents what the buyer is
actually buying?
2. Actual product : build around the core product: as
many as five characteristics. e.g. quality level, features,
design, brand name, packaging, that delivers the core
benefit to the customer.
8. 3. Augmented product: build around the core and
actual products by offering additional consumer services
and benefits.
11. Product Attributes
- A product attribute is one of the characteristics
that define a particular product and will affect a
consumer's purchase decision. Product attributes can
be tangible (physical in nature) or intangible (not
physical in nature).
1. Tangible Attributes:
Size, Colour, Weight, Volume, Smell, Taste, Touch,
Quantity, Material, composition.
2. Intangible Attributes:
Price, Quality, Reliability , Beauty/aesthetics.
12. BRANDING
- Branding is the marketing practice of creating a
name, symbol or design that identifies and
differentiates a product from other products.
- Branding is not about getting your target
market to choose you over the competition, but it is
about getting your prospects to see you as the only
one that provides a solution to their problem.
13. PACKAGING
- The purpose of product packaging is to protect the
product from damage.
- Product packaging not only protects the product
during transit from the manufacturer to the retailer,
but it also prevents damage while the product sits on
retail shelves.
- Most products have some form of packaging. For
example, soups must have a container and package
while apples may have packaging for transport but not
to sell the product from the produce department of
the local grocery store.
14. LABELING
- Display of information about a product on
its container, packaging, or the product itself.
- Your product’s label delivers your sales message.
You can explain what benefits you offer that
competitors don’t, for example, or promote a prize
or discount.
- You also can develop brand goodwill by showing
customers you share their values. For instance,
images of happy families, healthy athletes and green
pastures each speak to different types of
consumers.
15. PRODUCT SUPPORT SERVICE
- Activity or function required for
successful completion of a process, program,
or project.
- A product-service system (PSS), also known as
a function-oriented business model, is a business
model, developed in academia, that is aimed at
providing sustainability of both consumption and
production.
16. BRAND MANAGEMENT
- A brand is a name, term, sign, symbol, or design
which is intended to identify the goods or services of
one seller or group of sellers and to differentiate
them from those of competitors.
17. Brand Loyalty
- “The degree of consumer attachment to a brand.
Recognition
Preference
Insistence
Awareness of name,
benefit and package
Is useful, consumer
will buy if available
Will search for
18. PRODUCT LIFE CYCLE
-The course of a product’s sale and profit over it’s
lifetime. It involves five distinct stages:
1. Product development,
2. introduction,
3. growth,
4. maturity and
5. decline.
19.
20.
21. Introduction stage
- The product life-cycle stage in which the new
product is first distributed and made available for
purchase.
Growth stage
- The product life-cycle stage in which a
product’s sales start climbing quickly.
22. Maturity stage
- The stage in the product life cycle in which
sales growth slows or levels off.
- Modify the market, the product and the
marketing mix.
Decline Stage
- The product life cycle stage in which a
product’s sales decline.
23. NEW PRODUCT DEVELOPMENNT
PROCESS
- New product development (NPD) is the complete
process of bringing a new product to the market. It
may be a Consumable product, service or idea.
- This type of development is considered the
preliminary step in product or service development and
involves a number of steps that must be completed
before the product can be introduced to the market.
Fair & lovely.
Bajaj Pulsar.
Samsung Mobile
24. Why New Products?
-New product development is essential to any business
that must keep up with market trends and changes.
-Approximately one-third of the revenue a business
generates is coming from products they did not sell five
years ago.
-Changing environment creates new demands and needs.
28. To create safe, affordable, all weather form of
transport for a family
To create an option for people who want to move
from 2 wheeler to 4 wheeler in affordable price (As
little as 2 Wheelers)
29. Idea Screening
A scooter with 2 extra wheels at the back for extra
stability?
An Auto-Rikshaw with 4 wheels?
4 Wheeler car made of Engineering Plastics?
4 wheeled rural car?
But Market Wanted a Car and It should be like a Car
Not something that people will say, “Ah! That’s just a
Scooter with 4 wheels and not really a car!”
31. Prototype Development
First Prototype: Vehicle which had bars instead of doors
and plastic flaps to keep out the monsoon rains. It was
closer to a “Quadricycle” than a car, and the first prototype
Foot pedal had to be realigned to create more legroom
The body had to be changed because Ratan Tata, over six
feet tall himself, wanted it to be easy for tall people to get in
and out of the car
"Imagine the pain of the body designer -- he went through
hundreds of iterations, then at the last minute the car length
was increased by 100 millimeters!"
37. “The TATA NANO innovation was not
just in technology ;It was in mindset
change.”
38. Step 1: Generating
- Utilizing basic internal and external SWOT analyses,
as well as current marketing trends, one can distance
themselves from the competition by generating
ideologies which take affordability, ROI, and
widespread distribution costs into account.
Step 2: Screening The Idea
- Set specific criteria for ideas that should be
continued or dropped. Stick to the agreed upon criteria
so poor projects can be sent back to the idea-hopper
early on.
39. Step 3: Business Analytics
- During the New Product Development process, build
a system of metrics to monitor progress.
- Include input metrics, such as average time in each
stage, as well as output metrics that measure the
value of launched products, percentage of new
product sales and other figures that provide
valuable feedback
40. Step 4: Product Development
-If the new product is approved, it will be passed to
the technical and marketing development stage. This is
when a prototype or a limited production model will be
created.
-This means you can investigate exact design &
specifications and any manufacturing methods, but
also gives something tangible for consumer testing, for
feedback on specifics like look, feel and packaging for
example.
41. Step 5: Test Marketing
- Test marketing (or market testing) is different to
concept or consumer testing, in that it introduces
the prototype product following the proposed
marketing plan as whole rather than individual
elements.
- This process is required to validate the whole
concept and is used for further refinement of all
elements, from product to marketing message.
42. Step 6: Commercialisation
- When the concept has been developed and tested,
final decisions need to be made to move the product
to its launch into the market.
- Pricing and marketing plans need to be finalised and
the sales teams and distribution briefed, so that
the product and company is ready for the final
stage.
43. Step 7: Launch
- A detailed launch plan is needed for this stage to
run smoothly and to have maximum impact. It should
include decisions surrounding when and where to
launch to target your primary consumer group.
- Finally in order to learn from any mistakes made, a
review of the market performance is needed to
access the success of the project.
