new product development

1. NEW PRODUCT FAILURE AND SUCCESS
PRODUCT
In marketing, a productis anything that can be offered to a market that might
satisfy a wantor need.
In manufacturing, products arepurchased and sold as finished goods.
MARKETING:
Marketing is not aboutproviding products or services, it is essential about
providing changing benefits to the changing needs and demands of the customer.
New Product
New ProductA productnew to the world, the market, the producer, the seller, or
some combination of these.
Importance of NewProduct Development
 To assurea firm’s survival, new products may
 Offer differential advantages
 Lead to sales growth or stability
 Increaseprofits and control
 Reduce risk through diversity
 Improvedistribution
 Exploit technology
 Utilize wastematerials
 Respond to consumer needs
 Be a result of a government mandate
Categories of NewProducts
 New-to-the-World
 New ProductLines
 ProductLine Additions
 Improvements or Revisions of existing products
 Repositioned Products
 Lower-Priced Products

2.  Repositioning.
 Cost reductions.
LEVELS OF PRODUCT
Kotler suggested that a productshould be viewed in 3 levels.
Level 1:Core Product:-
What is the core benefit a productoffers?. Customers who purchasea camera are
buying more than justa camera they are purchasing memories.
Level 2:Actual Product:-
All cameras capturememories. The aim is to ensurethat your potential customers
purchaseyour one.
Strategy at this level involves organisation branding, adding, features and benefits
to ensure that their product offers a differential advantagefromtheir
competitors.
Level 3:AugmentedProduct:-
What additional non tangible benefits can be offered.
Competition at this level is based around after sales service, warranties, delivery
and so on.

3. PRODUCTSUCCESS
 When an organisation introducea productinto market, they must ask
themselves a number of questions.
 Who is the benefit aimed at?
 What benefit will they expect?
 How do they plan to position the productwithin the market?
 What competitive advantagewill the productoffer over their competitors?
FACTORS AFFECTING PLACEMENT OF PRODUCT.
When placing a productwithin a market many factors and decisions have to be
taken into consideration. Thus include;
 product design : The design be the point for the organization.
 product quality: Quality has to be consistentwith other elements of the
marketing mix. premium based pricing stratergy has to reflect the quality a
productoffers.
 product features: Thefeatures will be added so that it may increasethe
benefit offered to the target market. The organization has to usea
discriminatory pricing policy for offering these additional benefits. The
other feature is branding.

4. REASON FOR SUCCESS OF A NEW PRODUCT
 Knowledge Management
 Market Orientation
 New Product Development Process
 New Product Development Speed
 New Product Development Strategies
 New Product Development Teams
 Technology
 Top Management Support
Top Management Support
 At first glance, this appears to be completely out of control of the design
team. After all, top managers make the decision as to what to support
and what not to support right?
 Unfortunately, it’s not that simple. The support of top management is
critical to a project’s success. Without that support, budget or resources
are not likely to be granted to the project and it may not get the priority
it needs within the business as a whole. However, while the design team
cannot force management to support their projects they can develop the
political say to persuade management to support the best projects.

5.  Learning to influence managers is a critical skill for design teams.
Embarking on projects without managerial support is a recipe for failure
but winning over support is a question of leadership and
communication.
Market Orientation
 “Marketorientation is a company philosophy focused on discovering and
meeting the needs and desires of its customers through its product mix.”
 Itseems reasonableto suggestthat while a design team does not have
control over company philosophy it should be in a good position to
influence this. Conducting user research and where appropriatemarket
research – two fundamentals of developing high quality user experiences;
will enable the discovery of customer/user needs and how to meet them.
Technology
 The technology used to create and deliver the productmustbe suitable for
the market.
 While it is unlikely that the design team will havethe final say in technology
budgets or appropriation it is likely that they will be able to influence the
development teams in their choice of technology.
 Itis clear that, for example, multi-million dollar hardwareand software
requirements will make a productinaccessible to the consumer marketbut
may not be an insurmountablehurdle for governmentor corporate
markets.
 Technology must be chosen with the end-users in mind.
Knowledge Management
 In many organizations today; knowledge is treated ,Unfortunately, the
creation of knowledgesilos like these makes it impossiblefor knowledge to
be effective.
 Market research data, for example, can be incredibly usefulto a design
team but only if they can access that data and it’s not kept securely in the
marketing department under lock and key. Likewiseuser research data can
be highly valuable to the marketing team but once again – only if they can
access it.

6.  Knowledgemanagement structures willnormally fall outside of the design
team’s remit. However, thereis nothing preventing the design team from
advocating for open knowledgemanagement structures or indeed
persuading senior management to supportsuch structures.
New Product Development Strategies
 Strategy, despite the way it is often abused in management speak is
simply; “a plan of action designed to achieve a long-termor overall
aim.”
 Responsibility for new product development strategies is likely to be
shared between design, product management and development. This
means that the design team will have someinput into the strategies
chosen and will be able to influence these strategies with their user
research to guide the strategy to fit the needs of their users.
 Itis probably fair to say that productmanagement will normally have
the final say on a strategic direction but designers haveplenty of room
to negotiate with productmanagers to ensure better outcomes.
New Product Development Speed
 Speed to market is a critical factor in success. If your new product
development process takes 5 years butyour competitor’s takes 2 years
– it is likely that no matter how good your designs are; they will have
been eclipsed by the time they get to market.
 Refining the design process to maximize speed whilst protecting the
user experience is a delicate balancing act and it is fully within the
designer’s remit.
 However, the development process speed is much less likely to be
within the design team’s controland their ability to influence that speed
may be marginal at best.
New Product Development Process
 Having clear processes for design and development are essential. While
these may be tailored to fit specific circumstances – a methodology for
working that is clearly understood and agreed to by all members of the

7. productdevelopment team is highly likely to producebetter results than
those created with no formalprocess.
 The design team will, normally, havesome input into these processes
and be able to negotiate modifications to processes when they fail to
produceoptimal results.
 There is little control for the design team over the way other teams
execute these processes.
 Failure in execution, fromother teams, is one of the few areas whereit
is reasonableto say that failure was completely outside of the design
team’s control.
New Product Development Teams
 New productdevelopment normally brings together teams of diverse
people fromall across an enterprise.
 Itis strongly suggested that these diverseteams tend to be highly creative
and more successfulthan teams of a more standardized nature.
Why New Products Fail
 No discernible benefits
 Poor match between features and customer desires
 Overestimation of market size
 Incorrectpositioning
 Price too high or too low
 Inadequatedistribution
 Poor promotion
 Inferior product
 Failure to understand consumer needs and wants.
 poor productqaulity.
 Targeting the wrong market.
 Incorrectpricing.
 poor timing.
 Extent of competition.
 Unavailability of spareparts.
 Faulty distribution policy.
 weak supporting brand equity. And poor after sale services.