NEW PRODUCT DEVELOPMENT PROCESS

Principles and Practices of Marketing

New products has three forms.

  1. New to the world-this is a truly unique product that is there is no other product like that in the market.
  2. Improvement /revision to the existing products.this are products that are significantly different from existing goods in that they provide improved performance.
  3. Imitative products-they are new to a particular company but not new to the world.eg sqny and not sony or addidias instead of addidas.

A company would develop a new product for the following reasons.

  1. To improve the quality of its products
  2. To meet the pressure of competition. Ie defend market share position e.g. KBL developed new products when it realized it was facing competition from castle.
  • To utilize excess capacity if the company has excess machines,capital,manpower,raw material etc.
  1. To sustain the company growth once a product has reached the maturity stage.
  2. To respond to environmental force-produce products that are environmental friendly.
  3. To respond to new technology.
  4. To establish a position in a new market e.g. equity bank –equitel



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