New product development: once a company has carefully segmented the market, chosen its target customers, identified their needs, and determined its market positioning, it is better able to develop new products. Marketers play a key role in the new product as compared working with R & D and others in every stage of development.
Meaning and definition: product planning is the first step to be taken by an enterprise. Product development is the next step to product planning. Product development is the process of finding out the possibility of producing a product. It includes the decision as to whether it would be feasible or not to produce the product and whether it would be profitable or not for the enterprise to do so.
According to the William J. Stanton, "product development encompasses the technical activities of product research, engineering and design".
According to the Limpson and Darling, "a product development involves the adding, dripping, and modification of item specifications in the product line for a given period of time, usually one year". A company can add new products through the developments. The route can take three forms. The company can buy other competitions, it can acquire patents from other companies, or it can buy a license from other company. The development route can take two forms. The company can develop new products in its own laboratories. Or it can contract with independent researches or new product development firms to develop specific new products.
Categories of new products:
1. New to the world products: new products that create an entirely new market.
2. New product lines: new products that allow a company to enter an established market for the first term.
3. Additions to existing product lines: new products that products who provide improved performance or greater perceived value and replace existing products.
4. Repositioning: existing products that are targeted to the new markets or market segments.
5. Cost reductions: new products that provide similar performance at lower cost.