CHAPTER TWO
2.0 LITERATURE REVIEW
2.1 CONCEPT OF NEW PRODUCT
A new product is the product that is perceivably le different from bundle of benefits currently available in the market place. According to Kotler, several question were raise o what is new product?
The model that can manufactures introduce each year or if a term adds a wrinkle-remover cream to its assortment of woman cosmetic is this new product? Several possible categories of product can be recognized as new product that is the important product can be recognized as new product that is the important. However, is the need each separate categories may require different marketing program to suit it desire need.
The fact that no product maintains its position in the market indefinitely brings about of new product decisions and innovations. Also taste and fashion change arbitrarily as a result of complex human native as well as dynamic and competitive human environments. The source of idea of new competitive human environments. The source of idea of new product development may be extend and internal they went further to include the company research and development and employee suggestion in addition tot eh source earlier enumerated by Kotler (2004) in order to ensure a reasonable profitability of market success.
- Product that are really innovation truly unique there are product of which no existing substitute are considered satisfactory for example, malaria, disease, several categories of drug or category of product that are quick different from the existing product but satisfy the same needs can be called new product.
- Replacement for existing product that are significance different from the existing goods, dry, cereals manufacturer introduce new cereals and often discontinue the existing one that no longer fulfill sales and product expectation for instant coffee replaced ground coffee peas in the market.
The newness of the product can be view from four perspectives, namely;
- Newness compared with exiting product: a product can be considered new of it is functionally different from existing product.
- Newness from the company’s perspective: a revised product item or a completely innovation is considered by business firm as new.
- Newness from consumer’s perspective can b viewed as new on the basis of its consumption effect.
- Newness is a legal term: regulation may stipulate the period of time after it enters regular distribution for which a product should be considered new.
NEW PRODUCT MAY BE CATEGORIZED INTO THE FOLLOWING TYPES
- A “never before†product- a totally new and unique product, not currently available on the market.
- An improved product – an improvement over the other brands currently on the market.
- A category extension: a “new†type brand as compared to other brands currently on the market.
- A “me too†product – essentially the same as the other brands currently on the market.
2.1.1 PROCESS OF NEW PRODUCT DEVELOPMENT
As a product is developed, it progresses from the pen stage do the production and marketing stage. In each stage management must decide whether to do move on the next stage or abandon the product or seek additional information. These are essentially three stages for new product development these are;
- The ideal of generation and evaluation of idea for new product.
- Market analysis is the context for cooperation strategy.
- Product creation and pre-launch testing.
These are three stages are further divided into six steps or stages in the new product development.
