New Product Development Essay Example

  • Category:
    Marketing
  • Document type:
    Essay
  • Level:
    Undergraduate
  • Page:
    1
  • Words:
    453

1. Validity of Segmentation, Targeting and Positioning

Segmentation, targeting and positioning are strategies which organization adopt depending on the product and services offered. It is not necessary that segmentation, targeting and positioning will maximize returns but can surely create an opportunity to be in a better position to deal with people.

The validity of segmentation, targeting and positioning can be determined from the fact that a properly segmented and target markets helps to ensure that the correct section of the society is spoken to. It doesn’t not necessarily mean that correct segmentation, targeting and positioning will determine the success of the business but is one important determinant which shape the long term performance of the business. It might limit the business ability and might make them talk with a particular section or segment of the society. Segmentation, targeting and positioning strategies can be inferior to mass marketing because the process or steps which people need to follow is unclear. There are situations where segmentation, targeting and positioning is not the best option and organization needs to understand those and develop their strategies accordingly. Despite it people continue to use segmentation, targeting and positioning strategy and look towards improving the chances of the success of the brand

Thus, segmentation, targeting and positioning strategy is an important determinant which might help to increase the chances of the product or services being successful but is not necessarily true as it circumstances the process of segmentation, targeting and positioning might fail and maximize the returns.

2. New Product Development

New product development looks at working on different areas and concepts so that the customer is provided with a changed or completely new product. It falls under three categories discontinuous innovation, continuous innovation and dynamic continuous innovation.

Continuous product innovation is an aspect which requires identifying the customer viewpoint, and making changes or altercations to the present product or services. Continuous product innovation usually takes in the form where large changes are made and the product looks like a new one, small changes is made to the present one, and lastly change in technology is done but the product is used for the same purpose. Dynamic continuous innovation is one where new product is developed and is entirely different from the present’s one and happens due to research and development where an entirely new product is made. Discontinuous product innovation is one when no changes is made to the product and looks towards selling the same product without any changes.

Thus, the process of new product development requires working on the different aspect and the success depends on the manner in which the different factors are moulded so that people acceptance of the product or service increases.