Before any product is launched into the market, there is always a new product alert sent out by the company.
Product development is very vital in any dynamic economy, as it determines both the levels of economic growth and standard of living of the citizens in that geographical location or country.
Most products in the markets today have undergone changes overtime. Some that were in the market years ago have phased out while new products are introduced into the market on a continuous basis.
Competition has played a major role in encouraging product development in our economic system. There is this desire by each firm to better its product offers to be able to have distinctive advantages over the competitors.
Product developers do not meet with stakeholders only the product owner. Yes, developers do not meet with stakeholders. They have no business with stakeholders.
Product development is however characterized by dangers and uncertainties. The danger may be in wasting financial and human resources without achieving success in the production of the new products. The uncertainties arise as to whether the products will succeed or die on introduction. These basic facts, notwithstanding, companies recognize that they have to introduce new or modified products if they are to remain in the market for a considerable time.
Definition of Product Development
The term ‘product development’ does not connote the production of only unique products that have not been in existence. It means that and more. This understanding has guided the broad meaning given to the term ‘new product’. A new product can be a major innovation or minor modifications in the features or even the packaging.
A marketing guru named Robertson (1967) had offered a standard classification system based on hoe the new products influence the behavior of the consumers using them. These are continuous innovations, dynamically continuous innovations and discontinuous innovations.
Continuous innovations are minor product changes that have little influence on established consumer behavior. Example would include brand extension like Monarch Extra lager beer, Bergdorf lager beer, bar detergent, etc.
Dynamically continuous innovations:
Dynamically continuous innovations are more disruptive changes, and include major product changes and creation of some new products. Examples include electric toothbrush, electric toothbrush charger, robots, etc.
Discontinuous Innovations establish new products and new patterns of consumer behavior. Examples are television, video, computers, etc.
Most innovations fall within continuous followed by dynamically continuous and lastly discontinuous. Companies develop new products essentially to achieve growth in the firm’s sales and profits.
Reasons New Product Alert Fail To Achieve Its Objectives
There are various reasons new products alert fail in getting the attention of the product’s target market, but we will take a look at just a few of them.
- Lack of distinctive advantages in product performance and price.
- Initial overestimation of the target market which may result in low demand.
- Inability to utilize company strengths to capture profitable opportunities.
- Unpredictable changes in consumer preferences for goods and services.
- Products which facilitate competitive entry into the market by competitors.
- Lack of support from the marketing intermediaries.
Sources Of New Product Ideas
In our next article, we will take a very deep look into the sources of new product Ideas, and we will do our best to highlight and enumerate the various from which those ideas can be obtained.
In conclusion, the essence of developing new products – whether through invention or innovation – is to increase the product value and the chances of grabbing the market share. We have put together a detailed product marketing guide to turn any product into a success. You will learn the various ways of creating awareness for your products, the various marketing channels of creating awareness for your products both online and offline, and how to start your manufacturing business right where you are. Please ensure you do not skip this article. Infact, if there is any article you should read as a businessman or woman, then this is it!