NEW PRODUCT DEVELOPMENT PROCESS
Companies must develop a steady stream of new products and services because of the rapid changes in consumer. (Tastes, technology & Competition)
A firm can obtain new products in two ways
Acquisition by buying a whole company, a patent or a license to produce someone else’s product, the other is through new product development.
New Product Development:
It is the development of original products, product improvements, product modifications & new brands through firm’s own R&D efforts.
Reasons to failure of a new product
The market size may be over estimated.
The actual product cost not designed so well
It was incorrectly positioned in the market.
Price is too high.
Poor Advertisement
Poor Marketing Research
Bad timing of introducing a new product
Failure of product to fill the customer needs
Technical & Production Problems
Too many products (New) entering in to the market
Failure to estimate the strength of the competitor
Product problems & its defects
Failure to recognise rapidly changing marketing environments
To create successful new products a company must understand its consumers, market , competitors and develop products that deliver superior value to customers.
The success of new product depends on systematic new product development process is require for finding & growing a new product.
Source: Books & Notes
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By: Management Duniya
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