In order for a business to keep up with consumer/public demand and taste, new products must be developed.
All products have a "life cycle", and as they lose their novelty, consumers expect new products. .
New Product Design:.
The design of new products begins with market research into consumer wants, trends, needs and tastes.
Products do not necessarily need to be "new", old products can be improved upon and reintroduced.
New flavours can be made, or new looks can be acquired.
Renewal:.
An existing product can be improved upon according to consumer demands.
New trends can be incorporated and life cycles, increased.
Innovations:.
New product development is necessary to maintain and/or increase market share.
Innovation is a unique, completely new and original idea.
Disadvantages of Innovations:.
The disadvantage of innovation is that consumers may not necessarily like the new idea, and it may not be successful.
To ensure that this does not happen, research is conducted.
New Product Development:.
Every product starts out as a mere idea, conjured by someone.
Sales reps, technicians and even consumers may think of a new product idea.
Larger companies (such as ourselves), have product venture teams whose job is to seek new ideas.
The "good" ideas are chosen, developed and test marketing takes place.
Test Marketing:.
Test marketing is when new ideas are tested on potential customers.
Branding:.
A brand is a name or logo to distinguish a product from similar, competing products.
Advantages of branding for the CONSUMER:.
Brands are easily recognised,.
A certain quality can be expected.
Advantages of branding for the MARKETER:.
The brand forms the foundation of the promotional strategy,.
Brand loyalty is promoted.
Packaging:.
Packaging is the housing (container/wrapper) that is used to effectively protect and store the product.
The materials used should suit the product, while the shape and label design should appeal to the target market and should be easily recognisable.
