What do you understand by Product Development? What are the factors of product development?
What do you understand by Product Development? What are the factors of product development? What are the advantages of product development?
Ans.
Meaning of Product Development
Under the process of product development demolishing or obsoleting products are reinstituted. It is concerned with the transformation of an idea into real product. In the present time everybody wants some change. A product cannot servive unless it is dynamic in its nature. Product development is important for business because products loss their utility and attraction and at the some stage old product becomes incapable for increasing the demand in the market. With the help of product development firm can provide better services to consumers. Market of product is increased and better products are supplied.
Product development saves products from obsolescence. It encourages stability of the concern. With the help of product innovation, qualities in products according to market demand, choice of customer, fashion are created in products. Product development is such process in which new products are added into product line. Some current products are deleted from the product line. In the view of Stanton product research engineering and design technological activities are known as product development. In the product development process new products are added into product line and products of new sizes, qualities and designs of current are included.
Factors of Product Development
In the process of product development following factors are important:
1. Product Innovation – With the help of product innovation products are made in relevant to the market needs. In the product line new products are included and those stages are searched out, in which development and marketing of new product is possible.
Product innovation is significant due to following reasons:
(i) To acquire proper advantage of new inventions and achievements.
(ii) To consume inactive efficiency.
(iii) To establish co-ordination between market and consumer demand.
(iv) To increase scope and profits.
2. Product Improvement- Creation of qualities in products according to market demand, fashion, choice of customer is known as product improvement. Changements made in quality, sizes, design, colour of product are known as product improvement.
3. Packaging Improvement – It affects price and sale of products. Following are the advantages of good packaging:
(i) Low possibility of adulteration
(ii) Safety of products
(iii) Necessary instructions on the packet
(iv) Attraction
(v) Reuse of some containers.
Advantages of Product Development
Following are the advantages of product development:
1. Increase in Consumer’s Satisfaction- With the help of product development firm can provide better services to the consumers. Market of product is increased and better products are supplied to consumers.
2. Increase in Profits – Product development is helpful in increasing products. Advantages can be taken from the markets and consumers.
3. Encouragement to Business Stability- Product development saves products from obsolescence. It encourages stability of the firm.
4. Marketing Programme stands with the Product- Product planning is the initial function in the marketing programme.
5. Other Advantages – In addition to above following are some other advantages of product development:
(i) Essential for firm’s existence.
(ii) Marketing programme starts with the products.
(iii) Product is the basis of profit determination.
(iv) Product development is necessary for growth.
