Product

Management
New Product development and
Product Life style strategies

Product
Development

Product - ?
Product Line - ?
Product Development- ?

Product - Anything that can be offered to a

market that might satisfy a want or a need .

Product Line Group of products that are
closely related either because they function in
a similar manner , are sold to the same
customer groups , are marketed through the
same type of outlets or fall within the given
price range .

Product Development is the process of

designing , creating and marketing an idea or

product . The product can either to one that is
new to the market place or one that is new to
a particular company or and an existing
product that has been improved .

Need for Product Development

Helps to ensure sales growth projections .
To keep the organization competitive
To lead diversification efforts

Need for Product Development

To recognize and capitalize on consumer

differences .
To capitalize on societal changes .
To Capitalize on technical advances .
To reposition the brand / product

New Product
Development
The development of original products, product

improvements, product modifications , and

new brands through the firms own product
development efforts

Idea Generation
The systematic search for new-product ideas

Internal and External

External Data source

Idea Screening
Screening new-product idea in order to spot

good ideas and drop poor ones as soon as

possible

Product concept
A detailed version of the new-product idea

stated in the meaningful consumer terms

Concept testing
Testing new product concepts with a group of

target consumers to find out if the concepts

have a strong consumer appeal.

Concept Development and testing

Marketing Strategy
Designing an initial marketing strategy for a

new product based on the product concept.

Business Analysis
A review of the sales, costs, and profit

projections for a new product to find out

whether these factors satisfy the companys
objective

Business Analysis and Product

Development

Product development
Developing the product concept into a

physical product in order to ensure that the

product idea can be turned into a workable
market offering.

Test Marketing
The stage of new-product development in

which the product and marketing program are

tested in realistic market setting.

Commercialization

Product life cycle

Is an attempt to recognize distinct stages in

the sales history of the product .

This asserts that products have a limited life ,
product sales pass through distinct stages ,
each posing different challenges to the seller
and product profits rise and fall at different
stages of the product life cycle .

Product
Product Life
Life
Sales and Profits Over the Products Life From
Cycle
Cycle Introduction to Decline
Sales and
Profits ($)
Sales

Profits
Time
Product
Development
Losses/
Investments ($)

Introduction

Growth

Maturity

Decline

Product life Cycle

The course of products sale and profits over

its lifetime. It involves five distinct stages

1. Product development
2. Introduction
3. Growth
4. Maturity and
5. Decline

Product life cycle

Introductory stage of PLC

Growth Stage of PLC

Maturity Stage of PLC

Decline Stage of PLC

System Life Cycle

The system lifecycle is an examination of a system or

proposed system that addresses all phases of its

existence to include
system conception,
design and development,
production and/or construction,
distribution,
operation,
maintenance and support,
retirement,
phase-out and
disposal

Overview of Systems Life Cycle

Goals must be thoroughly understood
Formal procedures and methods ensure:
On-time delivery to required specification
Methodology
Sequential
Each stage well-defined
Developed in 60s and 70s to suit transaction-processing
systems

Systems Life Cycle

Feasibility
Study
Maintenance

Analysis

Installation

Design

Programming