classification of new products

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Chapter 1. Classification of

New Products


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Based on Service Development


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*Products that are

really innovative

These are strictly

unique in nature.

These productsmight not have

been in existence

till they wereintroduced.



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Replacements that

are significantly

differentThese are

changes in existingproducts in terms of

form, functions and

most importantly

benefits provided.


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Based on Booz, Allen Hamilton

Framework


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Framework

Significant improvements- these

products are not born out of a majorinvention but carry significant

improvements over their existing

counterparts. They offer superior

performance and hence replace existing

products.


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Framework

*Modified Products-these products are

modifications of the existing products.These may include new flavors, new

perfume, new package, a revised size etc.


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Framework

Products new to companythese

products are new to the company but notto the market.


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Framework

*Repositioning-these products are

existing products, but targeted at newsegments or new markets for the reasonlike increasing market share, fighting localbrands etc.


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Framework

*Repositioning-these products are

existing products, but targeted at newsegments or new markets for the reasonlike increasing market share, fighting localbrands etc.


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Framework *Cost Reductions- these products are

functionally similar to the existing product

but launched at a reduced price.


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Based on Opportunities

Desirable products

are those that have

high long term benefit

and also give highshort term

satisfaction.


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Pleasing Products-

are those that give

high short term

satisfaction but whichmay hurt the

consumer interests in

the long term.


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Salutary products

are those that give

high long term benefit

and give low shortterms satisfaction.


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Based on Recent Launches

Marketing Innovations

these are improved or

altered versions of

existing products. These

improvements includeminor modifications like

packaging, branding and

easy availability rather

than a change in thesubstance of the product

itself.


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Product

Improvements

these products are

more than just slightimprovements and

may carry innovations

on the technology

front or considerablechange in the design

of existing products.


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*Technological Innovations-these areproducts that are really innovative and has

the highest degree of innovation.


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Based on the State of

Purchasers Need

-this is a new product

classification based on the state ofthe purchasers want or need.


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Based on the State of Purchasers

Need Eagerly wanted

products-is offered

to the market to

satisfy an eager want

or need. It depends

on the initial value of

the new product tothe adopter

(consumer)


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High Value-Products

that are ready to be

obtained immediately

when becomes

available.


Need


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Intensive informative

searchconsumer

are willing to takegreat efforts to spend

time to search for

information about its

content, availabletime and date etc.


Need


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*Reasonable Price-

consumers will

tolerate it in case of

unsatisfactory

performace


Need


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Based with Regard of the

Corporate Strategy

Remerchandising is a modification of

name, promotion, price, packaging and /

or distribution while maintaining the

features of the basic product


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Major

innovations

are new services

for markets that

are but yet

defined.


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*Start up business consist of new

services for a market that is already

served by existing products and meet the

same generic needs.


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New services for the currently served marketrepresent attempts to offer existing customersthe organization a service that was notpreviously available from the company, although

it may be available in other companies


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Service lineextensions

represent

augmentations ofthe existing

service line.


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*Serviceimprovements

are perhaps the

most commontype of service

innovation.


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New Product Strategy

New Product Strategy- is a statement that

identifies the role of a new product and

what is expected to play in achieving

corporate and marketing goals.

classification of new products

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