Is something that is viewed as capable of satisfying a need or want. It can be an object, service, activity, person, place, organization or idea. It is simply a set of tangible physical and chemical attributes assembled in an identifiable form. Product is that bundle of utility which the buyer receives as the result of a lease purchase. It includes the physical good or service itself, the functions of the product in use, the package, the label, the warranty, the manufacturer’s and retailer’s services, after sale service, the confidence or prestige received by the brand and the manufacturer’s and retailer’s reputation, and any other symbolic utility received from possession or use of the goods or services
May include its features, wherein the more features the item offer, the higher will be its value.
“ NEW” PRODUCTS
Competition is very apparent and dynamic in marketing which makes it necessary for a company to modify its existing products to meet ever – changing consumer needs.
CATEGORIES OF “NEW” PRODUCTS
Exist out of the real need, and no substitute can be available. (Example: remote control television system as introduce by Sony.)
Those with significant difference from existing products. When introduced may phase out the old product concept. (Example: the new model of car replacing the old models.)
Product new to imitating company but not from other company. It is a partial adoption of product idea. (Example: the introduction of ready mix instant foods and disposable diaper concept.)
PRODUCT PLANNING AND DEVELOPMENT
Embraces activities which enable producers and middlemen to determine what should constitute a company’s product line.
Is more limited term encompassing the technical activities of product research, engineering and design. This is distribution of new or improved products for present market.
STEPS IN PRODUCT DEVELOPMENT PROCESS
Product development process originates from the generation of ideas.
MANAGERIAL DECISIONS TO CONSIDER
WHETHER TO PROCEED TO NEXT STAGE.
This is done when, after evaluation of current stage, product development is still feasible.
WHETHER TO ABANDON THE PRODUCT.
If it is obvious that possible development may not be lucrative, it is wiser to phase out the idea of development.
WHETHER TO SECURE ADDITIONAL INFORMATION.
If there is insufficiency of data on hand.
STEPS IN THE DEVELOPMENT PROCESS
IDEA GENERATION –
Product ideas may come from external sources or internal sources. The market can be the best source since they know what they want and this planned development, as per suggestion, is intended to satisfy their defined needs and wants.
SCREENING OF IDEAS –
This step chooses the best ideas by considering whether they are compatible with resources, objectives, demand, cost, and above all profitability.
FORMAL BUSINESS OR ECONOMIC ANALYSIS –
Objectives of this step are further qualification of demand, risk, investment, cost and profitability.
PRODUCT DEVELOPMENT –
Product engineering design is prepared, prototype production, product testing, process design, procuring patent and trademark. Actually developed product is now produced.
TEST MARKETING –
This is commercial experiment conducted in limited geographic areas to ascertain product feasibility. It is different from product test. The...