3 Product Development Methods and Elements
Product research and development is very necessary owing to rapid changes in technology, cut-throat competition, changes in the habits and preferences of the customers, etc. To keep pace with the changing circumstances, it is necessary for producer to develop the new product altogether or to make significant improvements in the existing product in order to remove problems concerning cost of production, market, etc. No firm can withstand the competition created by other rivals through its Primitive and static means, i.e., old fashioned goods.
So, a big responsibility falls on the managers for conducting research work in the direction of product development. For the very survival of the concern, research is very necessary. “The research conducting management is called forward looking management.” Hence, it is the first requisite for a successful firm to develop new products from time to time.
Concept of Product Development Methods
Product development is a word of wide importance. The product in a concern may be developed by the following three methods :
2. Adaptation or Improvement; and
3. Innovation or invention.
1. Limitation— It is done by copying the other popular, or best-selling products already existing in the market. For example the introduction of king-size cigarettes.
2. Product Improvement—Product improvement consists of modification and improvement in the existing quality, size, form or design of the existing, product so that it may look almost a new product. It involves the
(a) Improvement in quality.
(b) Features Improvement.
(c) Style Improvement.
(d) Packing Improvement.
3. Product Innovation— Product innovation is the development of a new product resulting in an increase in the product line. It refers to the incoming of an altogether new product which is based on research and which has been unknown so far. To face market changes, technological changes, the change in customer’s needs and styles and profitless competition and to reap the fruits of changes in demand and fashions it is imperative to develop new products. Product innovation is essential also to diversify the risk of the business.