Introduction to New Product Planning

Introduction to New Product Planning

• Technology, customer needs, competition, and globalization are constantly changing and driving new product development.
• Consumer preferences evolve, necessitating more innovative products.

Two ways to win a product:

• Doing projects right: focusing on cross-functional teams, thorough pre-development research, incorporating consumer input, and achieving clear product definition.
• Doing the right project: emphasizing the innovation process itself.

Definition of New Product

• A new product is considered new based on its novel introduction by a company in any of these scenarios:
  • The product was never made by the company before.
  • The product was never distributed by the company before.
  • An existing product is introduced to a new geographical area by the company.
  • An existing product is introduced in new packaging, size, or form.
  • An existing product is introduced into a new market niche with a new function.

Simplified definitions of "New Product":

• A product never previously manufactured by a company, introduced to a new market.
• The rebranding or presentation of an established product in a new form, package, or label, entering a market previously unexplored by the company.

Definition of Customer and Consumer

• A customer is the person who buys a product in a marketplace.
• Customers are drawn to products through point-of-sale materials, promotion, or in-store tastings.
• Customer choices are influenced by preferences, income, and requirements.
• Customers prioritize reliability, price, delivery, quality, and price.
• A consumer is the one who uses or consumes the product purchased by the customer.

Market and Marketplace

• The market is a conceptual representation of a need identified in customers and consumers that marketing personnel hope to turn into a sellable product.
• The marketplace is the real physical location where products are sold, not in the conceptual market.
• The understanding of consumers and the marketplace drives the marketing strategies for new products.

Product Planning

• Product planning encompasses the development and management of a product's lifecycle, from its initial concept through development, launch, and eventual phase-out.
• It aims to satisfy consumer needs and wants while achieving organizational objectives.
• Product planning involves two key processes:
  • Product development: The initial process where a product is conceived, conceptualized, developed, produced, and tested. It occurs before the product’s formal launch into the marketplace.
  • Product management: The process where the product is commercialized, sustained, and eventually disposed of. It includes the launch effort and all activities after the product's introduction.
• Management levels distinguish between various managerial roles within an organization.

Defining Product by the Nature of Innovation

• Innovation represents a complete package of features, forms, and functions, focusing on delivering benefits to the consumer.

Introduction to New Product Planning

• The need for new and innovative products constantly arises due to rapid technological advancements, changing consumer preferences, and dynamic competition.

Two Ways to Win in Product Innovation

• Doing projects right: This focuses on employing effective cross-functional teams, conducting thorough upfront research, incorporating consumer feedback early on, and achieving a clear and stable product definition.
• Doing the right project: This emphasizes on the process of innovation itself.

Definition of New Product

• From the perspective of the company:
  • A product never manufactured before by the company.
  • A product never distributed before by the company.
  • An established product introduced to a new geographical area.
  • An established product presented in new packaging, size, or form.
  • An old established product with a new function introduced to a targeted market niche.

Two Simplified Definitions of a "New Product"

• A product never produced by the company, introduced to a new or existing marketplace.
• The rebranding or presentation of an established product in a new form, package, or label, entered into a market previously unexplored by the company.

Customer vs. Consumer

• Customer: The one who buys in the marketplace. They are attracted by point-of-sales materials, promotions, or product tastings. Their choices are influenced by preferences, income, and needs. They seek reliability, price, delivery, quality, and price.
• Consumer: The one who uses or consumes the product purchased by the customer.

Market vs. Marketplace

• Market: A conceptual idea representing an identified need in customers and consumers which marketing aims to transform into a potential sale.
• Marketplace: The physical location where products are sold. It's the tangible realm where consumer and market insights translate into sales.

Product Planning

• The process of developing and managing a product's lifecycle, from its initial concept through development, launch, and eventual phase-out.
• Two key processes:
  • Product Development: Consists of activities from conception to launch, including ideation, prototyping, production, and testing.
  • Product Management: Involves commercializing, sustaining, and eventually phasing out the product after its launch.

Defining Product by Nature of Innovation

• Innovation is a comprehensive concept that encompasses features, forms, and functions, all geared towards delivering benefits to the consumer.

Explore the essential elements of new product planning, including technology shifts, evolving consumer preferences, and competitive landscapes. This quiz will guide you through vital strategies for successful product development and innovation.