This is the creation of products with new or different characteristics that offer new or additional benefits to the customer.
Product development may involve modification of an existing product or its presentation, or formulation of an entirely new product that satisfies a newly defined customer want or market
Factors Hindering New product Development
Stiff competitions have led to market fragmentation. Companies have to aim their new products to similar market segments and this means lower sales in the market of new products.
Shortage of new product ideas
Marketer lack good ideas that can help develop new products that the consumer can develop a liking force.
Social and Government constrains.
New products have to satisfy public criteria like customer safety and environmental safety. Governments’ requirements for products safety has slowed down product innovations.
Cost of new product development process.
A company, typically has to generate many new product ideas in order to finish with a few good ones. The company has to face rising cost in research development, manufacturing and marketing.
Some companies with good ideas cannot raise the funds needed to research them. This leads to product modification and mortification instead of true innovations.
Shorter growth period for successful products.
When a new product is successful, rivals are fast to imitate it hence shortening the new product growth stages.