Basic Concepts of Product Development

8/3/2019 Basic Concepts of Product Development

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Basic Concepts ofProduct Development

Dr. Veena T. Nandi


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Products are classified on the basis

of consumer buying behavior andtheir attitude. In fact products canbe classifies just as we classify the

markets.

Proper product classification helps in

developing suitable marketingprograms.


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Traditionally consumer products are put into 3categories:

Convenience Products, Staples (they are boughtwith lot of ease and without lot of time spending)

Shopping Products, Impulse goods ( These are

purchased only when the consumer considersfactors like price, quality and style and visitsseveral outlets before deciding to buy, thevisibility of these products are high but brandloyalty is low)

Speciality Products, Emergency goods (for whichthere are no reasonable substitute)


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Product Line & Product Mix A product line I a group of closely related

products offered by an organization. Whileproduct mix consists of all the individual productsavailable through out the organization. Productmix may have several product lines nad each

product line may have several product models,styles and sizes.

In other words BREADTH of a product mix isgiven by number of product lines it markets.

While the DEPTH will show the combination of allthe available models, colors, sizes of all theproduct lines.


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Modification of existingproduct lines:

Composition of the product line

Expansion or contraction of theproduct line

Value addition process

Brand

Packaging

Physical characteristics

positioning


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What is Value for money:

From the customers point of view therecan be two dimensions of this:

Total customer cost which is about

monetary price, time cost, energy costand psychic cost and

Total customer value which is aboutproduct value, service value, personal

value and imge value,Both of these sides should be comparablefor positive customer derived value.


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Product development is a creation ofproductswith new or different characteristics that offernew or additionalbenefits to the customer.Product development may involve modification ofan existing product or its presentation, orformulation of an entirely new product thatsatisfies a newly defined customer want or

market niche.

2) Product is a good, idea, method, information,object, or service that is the endresult of aprocess andserves as a needor want satisfier. It

is usually abundleoftangible and intangibleattributes (benefits, features,functions, uses)that a selleroffers to a buyer for purchase.Marketingof a good or service that most closelymeets the requirements ofa particular market orsegment and yield enough profit to justify itscontinued existence.
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Responsibilities of a Product Manager

A product manager is sometimes called the CEO of a product,who, like a general manager looks after all aspects of the product

and business. At times I have heard a product manager beingcalled the janitor of the product, who cleans up the act of allparties involved, helps remove glitches and ensures the smoothrunning of the product.

Define product strategy and roadmapsA product manager is responsible for defining the long term

strategy of the product and express the details in a productroadmap. This roadmap and vision is what is considered as theplan of record for the engineering team to implement.

Deliver MRD's and PRD'sMRD's or market requirement documents include the voice of thecustomer, "markitecture" and is a component of the business

case. The MRD is written by the product manager with assistancefrom research, marketing communications, sales, engineering andfinance. The PRD or the product requirements document consistsof the prioritized features of the product.


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Voice of the customerThe product manager is responsible for tracking user feedback,customer satisfaction, dashboards and metrics to measuresuccess and engagement of new and existing functionalities.

Anybody in the product management role works with developers,ISV's, and evangelists to get feedback.

Tactical responsibilitiesThe product manager is responsible to maintain and managetechnical partnerships, requirement analysis, prioritization,evaluation and negotiations of terms with engineering.

External PartnershipsProduct Managers are typically required to work with external 3rdparties to assess partnerships and licensing opportunities.

Conduct competitive analysis

Every product manager needs to be the guru when it comes toknowledge about competition. Product managers researches thecompetition's technology and gathers data around market share,direction of the industry and threat to the current product andbusiness.


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Internal partnershipsProduct managers are required to closely work with crossfunctional teams such as engineering, sales, business

development, evangelists and marketing to define, designand execute plans. A product manager is also required tomake presentation to these teams and train them.

Perform product demos to customers.The sales team often relies on product managers for goodleads. At times its product managers who go in first to acustomer to give a high level technical presentation andmake a business case for the customer.

A product manager is required to wear multiple hats, and tobe successful in the product management role the productmanager has to perform roles such as a project manager,visionary strategist, business owner, program manager,quality assurance, user experience police and sometimeseven sales, business development and marketing.


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Newly developed products entering a

congested market to effectively penetratethe genre and grab a reasonable share ofthe market share is one of the hardesttasks that a company will find itself in,especially for consumers that emphasize

quality and affordability above everythingelse. Product identity is still in its buildingphase, and to be able to expect a verygood growth in the brand buildingstrategies, the research and development

team with the cooperation of themarketing section should find ways onhow to place the product and make itavailable to the market.


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This is the most important thing above anything else. Thestrategy of pricing is the easiest way to attract market purchaseof any product, but this will only be good for a certain period,which most people call the trial period phase. Brand and ProductLoyalty shall ensue once the product is able to prove its worth asfar as quality and price is concerned. In most cases, people whoare satisfied with the offer to them will most likely continue toendorse the product. Such successful products include that ofUniversal Robina Corporation's C2 Green Tea, Zesto's The One,Coca Cola, Pepsi Cola, San Miguel Corporation's beer lines, AsiaBrewery for its bottled water and beer beverage lines and ChinChin's Black Gulaman/ Grass Jelly and Powerbits Sports Drink

variants. Each has had its share of proper chances to saturate themarket, and the most significant factor that separates most ofthem is through the following observations, ironically theanchored by the 4P's of Marketing:

1.Price2.Placement3.Promotions

4.People5.Packaging

6.Persuasion,7.Quality


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As it seems, the most important thing tonote is that the 4P's of Marketing more or

less becomes the gauging point towardsthe success of the consumer products.Satisfying as many of them as possible isthe most important aspect towards

product development and brand buildingsuccess. The category to which they willfall under is usually common, but in thecase of such products as that of Chin Chin

Black Gulaman, it may fall under twomarketing categories: Bottled Beveragesor Juices and Deserts.


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Chin Chin Black Gulaman or Grass Jelly, an oriental cuisine madeup of honey and black jelly bits has effectively covered bothcategories, enabling it to be more flexible as far as where peoplewould be able to consider their category. The usual beverages

offered by most major players concentrate on one particularcategory, in this case, the beverages category. There may bemixed reactions with regards to the classification of this GrassJelly Drink from Chin Chin but if it can widen the area of scope forits target customers, then there is no reason to think twice of itspromise towards the market. But perhaps one of the things thatChin Chin Black Gulaman would need to emphasize on is that of

placement in the market, since most people have second thoughtswhen they are offered its suggested retail price. Then again, whatis price compared to quality, especially for a company that wasawarded a Super Brand tag for successive years for offeringquality and naturally made products to the consumers. Qualityproducts come in numbers, but the mentality of cost consciouspeople for affordable and cheaper products becomes an obstacle.Perhaps this is something that most people should think about,instead of being cheated out of their money by so-called productsthat claim to be natural, but are actually only of natural quality intheir minds.


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