New product development
Organizations must develop new products.
Changes in technology, competition, customer preferences, and environmental
forces necessitate new product development.
Products that are new to the organization
and market place can be regarded as new products. They should be perceived as
new by the customers. In other words, if buyers consider it to be significantly
different from competitive products in some relevant characteristics, then it
is indeed a new product.
New products include original products,
improved products, modified products, and new brands that the firm develops.
Types of New products
1.
Product innovation: innovations are unique or
original products that are new to the world. They satisfy needs that are not
being satisfied. Innovations are costly, risky and time consuming.
2.
Product modification: existing products are
modified and improved. Customers perceive them different from existing
products. The objective is to defend market share. Modification can be in terms
of quality, function, and benefits.
3.
Product imitation: imitations are products that
are new to the organization but old to the market.
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