Total Quality Management

Outline

Product Classification
New Product Development
Reasons for New Product Developing
Methods use for Developing New Product
New Product Development Process
Product Life Cycle

THE MEANING OF
PRODUCT

A Product is a set of tangible and intangible

attributes, which include packaging, color,
price, quality, brand name and manufactures
and retailers services , all these that buyer
accept as a want satisfaction.

Product Classification
On the basis of purpose for which they are
bought.

Consumer product
Goods or Services
which are bought
by final consumer
for consumption.

Business Product
Products which
purchased for further
processing to produce
other products
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What is a New Product

A new product is a product which is totally new in
concept.
Any product which is perceived by the customer as
being new.
A new product can be categorize into :

Truly new

product.

Innovated product

from the existing

one.
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Reasons for New Product

Developing
Computation:
To maintain or to gain the competitive image in the
market.
Change the consumer needs:
To brings the changes in the consumer needs

Reasons for New Product

Developing
Technology:
Technology that in the favors to develop or to
take the risk of new product development
Good Image:
Company good image in the Market ( in the mind
of customer) to take the risk of new product
development.

Methods used for developing

new product
A firm can obtain new product through two ways

By R &D Cell:

Developing new product

through R&D , either
from entirely new product
or bringing innovation in
the existing products.

By Acquisition
By this a firm
buy an other
firm wholly or
get licensee in
order to obtain
new product
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Process of New Product

Development
New product are develop through a systematic
process ,in which first the product are find out
and then it grows.
The whole process can be divide into many stages,
some Seven stages are given below.

New Product Development

Process
Major Stages in New Product Development

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Stage#1 Idea Generation

The starting stage for new product development
in which typically an organization develop a
number of ideas for new product
Such types of alternatives idea are develop into a
meeting called brain storming session

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Stage#1 Idea Generation

Sources for idea generation
The organization takes new ideas from two sources
Internal sources:
R&D Cell
Employees feed backs

External Sources:
Customer Questions &
Complaints
Distributor Feed backs
Compotators activates
e.g. their Ads as a clue

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Stage#2 Idea Screening

In this step one idea is selected from the
alternative idea of the first stage
The basis for best idea are:
Utilization
How much that product will be able by the Target
customer with the sense of that product
utilization.

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Stage#2 Idea Screening

Resources
Which type, quality and at which price that
resources will be available.
Ethical Aspect
What will be the responses of the society to whom
that product will launch.

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Stage#3 Product Concept

Development
Once the idea is selected in the idea screening
stage ,then in this stage the concept of product is
developed.
Some time alternative concept of the same
product are developed according to customer
needs ,wants etc.

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Stage#4 Mrkg Strategy

Development
Developing strategy that how to introduce the
product into market.
How will the product/service idea be launched
within the market? A proposed marketing
strategy will be written laying out the marketing
mix strategy of the product, the segmentation,
targeting and positioning strategy and expected
sales and profits.

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Stage#5 Business Analysis

Analysis the product with the business point of
view. This analysis involve a review of the sales,
cost ,profit.
The main aim of business analysis is to find out
whether the product satisfies the company
objective or not.

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Stage#6 Product Development

In this stage the product concept is came into its
physical form, then this product is presented to
the market for testing.
Testing Marketing help the organization in
creating financial decision about whether to
launch that product in the market or not..

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Stage#7 Commercialization
After successful passing the product from the
testing market then the firm properly introduce
that product into market.
Note After commercialization Stage then that
product's life cycle ( PLC) begin.

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Product life Cycle ( PLC)

The commercialization stage of the new
development is consider birth stage for its life cycle
The whole PLC can be divided into Four stages
o Stage - 1 Introduction
o Stage - 2 Growth
o Stage - 3 Maturity
o Stage - 4 Decline

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PLC 1st Stage Introductions

It is the pioneer stage of PLC in which the new product
is first distributed and made available for purchases.
Characteristic of this stage:
Negative Profit due to:
Low sale volume
Distribution Exps
Promotion Expns

Some product disappear due to:

Failed to attract target customer
Quick attack from compotators
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PLC 2nd Stage Growth

The second stage of PLC in which a product's
sales starts climbing quickly. Hence this stage is
termed as Market Acceptance stage.
Characteristic Of this stage:
Increase in profit due to :
Sale Increase
Per unit cost
Competitor enter which push the firm:
Introduce new feature
Improve product quality
Giving Promotion & discounts
Introducing new channels of distribution

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PLC 3rdnd Stage Maturity

The third stage of PLC in which Sales growth
slow down.
Characteristic Of this stage:
The product growth begins to slow down (but at
later stage of the Maturity Stage
This stage can be longest one if the company
meet consumers. Needs e.g. Baring extra
features in their productivity.
If the firm don't brings extra features in in
their product, then it possible to enter into next
stage, that is decline stage.
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PLC 4th Stage Decline

The stage of PLC in which the product is became out
of business
Characteristic Of this Stage:
Product sales decrease due to:
Shifting consumer tats
Technological Associated with product
Organization that failed to anticipate the decline
stage in earlier may possible to go out of the business

Some firm out innovation in their declined

product and this the product is again enter into
its life cycle
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Summary
A product is the item offered for sale. A product can be a service
or an item. It can be physical or in virtual or cyber form.
A basic product classification can be made based on consumer and
business products.
A new product is a product which is totally new in concept and can
be categorize into truly new product or an innovated product from
the existing one.
They are many reasons to innovate; Technology, Market and
Consumer are the main source of it.
There are two ways to obtain new products through Acquisition
and New Product Development.
The eight stages of new product development are Idea
Generation, Idea Screening, Concept development and testing,
marketing strategy development, Business analysis, Product
development, Test marketing and lastly commercialization.
After the commercialization then that Product Life Cycle (PLC)
begins. The whole Product life cycle is divided into four stages;
stage 1 is Introduction, stage 2 is Growth, stage 3 is Maturity and
stage 4 is Decline.
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Thank you