No firm can withstand the competition created by other rivals through its Primitive and static means, i.e., old fashioned goods. So new product must be developed for survival. The following are the important considerations in the process of product development:
Considerations in Product Development
(1) Consumer’s Acceptance— The thing being developed must have consumer’s acceptance. Products which have no marketing characteristics have no worth. The tests of consumer’s acceptability are
(a) Attracting and pleasing appearance of the product.
(b) Convenience in purchasing and also in its consumption.
(c) Usefulness of the commodity to the customers.
(d) Reasonable cost of operation.
(e) Compatible price of the product with the existing rivals or substitutes of the product
(f) The availability of spare parts if the product happens to be expensive and of engineering use.
(g) Stability of the demand for the product.
(h) Adequacy of supply to cater to the entire demand.
(i) The ultimate east of the product going to be manufactured.
The management must ensure these characteristics in the product through test marketing. Only then the product should be manufactured on a large scale.
(2) Patent and Trademark Protection— The product invented after long and thorough research and spending a lot of money, must be capable of being registered. This is necessary in order to avoid imitation or copying and to distinguish it from other products.
(3) Development and Manufacturing Cost— The development costs and manufacturing costs will determine the feasibility of success. If the production cost come out to be so high that the product lacks commercialization, it is pointless to produce it. In some cases, initial cost may be high but later on it may go down due to certain economies. So, they may be ignored and production may be started.
(4) Complementary Products— There are certain products which are bound to be bought in order to consume a particular product. They are simultaneously used. Hence, before considering the development of a new product, the price and supply position of the complementary product/or products should also be considered.
(5) By-Products — By-products hold a significant place because they lower down the cost of parent product so considerably that it is possible for the manufacturer to withstand competition and sell it at cheaper rates. By-products are the main source of profit and some products are made merely to extract the profits on sale of by-products. Hence, the possibility of by-products should also be considered.
(6) Impact on Existing Products— And in the last, though not the least, the impact of the new product on the sale of other existing products (already being produced and sold by the same manufacturer should also be evaluated. There may be certain goods whose introduction increases the sale of existing products. In this case, they are called complementary product but when their introduction has an adverse effect on the sale of existing products, they are called competitive goods. Hence, it is also an important consideration in the development of new products.
(7) Ultimate Replacement— Ultimate replacement is also a vital point in product development. The concern can stay in business only if it comes out regularly with new products that will replace the old ones becoming obsolete.