product planning and development of industrial products
DESCRIPTION
BY- ASHUTOSH SINGHTRANSCRIPT
Product Planning & Development in Industrial Marketing
Classification of New Products
Products which are innovative and new to the world.
Products that are new to the company but not new to the market.
Eg.Technology Infrastructure (support services,BPO) are the services helpful in boosting the sales revenue.
Revision to the existing product in the existing markets.
Eg.Polaris Software Lab launched its new banking software product called ‘Intellect Court’ to target large banking organizations worldwide. It was a fine tuned version of earlier product ‘ OrbiOne’.
Addition to the existing product lines with additional markets.
Eg.ICICI launched a new product ‘Orion Advantage’ in thr ERP for SMEs. This was for identification of market segments.
Reasons for success of NPD
Product superiority and uniqueness .Perfect market knowledge.Technical and production capability.
The NPD process
Idea Generation.Idea Screening.Concept development and Testing.Business analysis.Product development.Market testing.Commercialization.
Idea generation
Eg. A company wanted to increase the production of transformer
coil to meet the increasing demand asked one of its suppliers to develop coil winding machines to solve its problem.
CustomersCustomers
EmployeesEmployees
DistributorsDistributors
CompetitorsCompetitors
R & DR & D
ConsultantsConsultants
Creative ThinkingCreative Thinking
Sources ofSources ofNew-ProductNew-Product
IdeasIdeas
Sources ofSources ofNew-ProductNew-Product
IdeasIdeas
Idea Screening
Selection of those ideas which are likely to succeed after brainstorming.
Few questions are asked by the new product committee as in:
Is the new product in line with the company?Do we have adequate resources?Is it useful for the customer? etc
Concept development and testing
A product concept is a detailed version of the product idea that is stated in the meaningful customer terms.
Concept testing
The concept can be presented by developing 3 dimensional models (stereo lithography) or simulation.
This technique creates computer generated 3D plastic prototypes which take short time to get ready.
After experiencing these models are organizations are interviewed and asked questions.
Business Analysis
The basic objective of this is to develop an estimated projection of sales, cost and profitability.
Focuses on: (a)Detailed Investment. (b)market potential(c)sales forecast (d)cost of product development.
Product Development
It’s a process in which engineers & technicians create the desired product. the R&D develops one or more prototypes of the product concept.
The process is as follows:Design Process engineering Tooling
Manufacturing Testing Final Product
Market Testing
In Industrial marketing various methods are used for this purpose:
(a) Alpha & Beta Testing.(b) Introducing them to the trade shows.(c ) testing in distributors showroom.(d) test marketing.
Commercialization
It is commercialized when introduced to the target market.
The activities like recruiting, training of sales force, product catalogues, introductory advertisements. Etc.
The NP marketing plan should clearly define:
(a) timing of market launch.(b) marketing objectives and goals.(c) market segments.
PLM
It is about managing the product throughout its life cycle.
Modern product development system should have following:
1. the ability to create digital products.2.cross functional collaborations throughout the
value chain of the product.3.controlling and managing product information and
development throughout the life cycle.4.developing, collecting and updating digital data to
all the people involved in the product development process.
Benefits of PLM
Reduction in product development time.Minimization of process errors.Reduction in product development travel
expenses.Minimization of time to market.
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