1. PRODUCT DEVELOPMENT

2. INTRODUCTION In the present day environment, product development is a continuous function of marketing management. The life of the firm is closely related to the development of new product through technological innovations. In a dynamic and competitive market environment, continuous development and introduction of new products is the key to survival and growth of the companies.

3. MEANING Product development is the process of finding out the possibility of producing a product keeping in view the customers’ needs and wants. It includes the decision as to whether it would be feasible or not to produce the product and whether it would be profitable or not for the enterprise to do so. It also includes modification of existing products and elimination of unprofitable products.

4. DEFINITION “Product development involves the adding, dropping and modification of item specifications in the product line for a given period of time, usually one year.” lipson and Darling

5. IMPORTANCE OF PRODUCT DEVELOPMENT ENCOURAGE MENT OF INDUSTRIAL STABILITY CONSUMERS’ SATISFACTIO N INCREASE IN PROFITS

6. PRINCIPLES OF PRODUCT DEVELOPMENT PRINCIPLE OF STANDARDISATI ON PRINCIPLE OF SIMPLIFICATI ON PRINCIPLE OF SPECIALISATIO N

7. ELEMENTS OF PRODUCT DEVELOPMENT Product Development Process Product Improvement Packing Improvement

8. PRODUCT DEVELOPMENT PROCESS 1 GENERATION OF IDEAS 2 SCREENING OF IDEAS 3 BUSINESS ANALYSIS 4 PRODUCT DEVELOPMENT 5 TEST MARKETING 6 COMMERCIALISATION OF THE PRODUCT

9. PRODUCT IMPROVEMENT Means the changes brought into the qualities, variety, shape and size of the product. It includes quality improvement, type improvement, style improvement, fashion design improvement, packing improvement etc

10. PACKING IMPROVEMENT Packing improvement is an important factor of product development. Packing may be defined as the general group of activities in product planning which is value designing and producing the container or wrapper for a product.

11. TEST MARKETING Test marketing implies the production of same production small quantities in the initial stage and later on sending those products in some selected markets to find out the limits to which those products have been preferred by the consumers. Reasons for Test marketing are To know the reaction of consumers To know defects and alternatives

12. LIMITATIONS  Knowledge of competitive firms  Away from the reach of small firm  Results are not fully reliable  Not possible for many products

13. REASONS FOR THE FAILURE OF NEW PRODUCTS DEFECTIVE PRODUCTS PRICE INADEQUA TE MARKET ANALYSIS FAST COMPETITI ON INSUFFICEN T MARKETING EFFORTS WEAKNESS OF SALES FORCE TIME

14. SCOPE OF PRODUCT PLANNING & DEVELOPMENT PRODUCT DECISION DESIGN AND SIZE OF THE PRODUCT NAME OF THE PRODUCT COLOUR OF THE PRODUCT PRICE OF THE PRODUCT BRAND, PACKAGE, LABEL GURANTEE & AFTER SALE SERVICE NEW USES OF THE PRODUCT

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