New Product Types

[nirmit behal]

Classification of New Products

Types of Products	Explanation	Examples
New Product Lines
Completely New Product
Line Extensions
Core Product Revisions
Repositioning
Changes to Augmented Product

 

•Technological Breakthroughs/New to the world products/Completely New Products- These products are absolutely new to the world and will create their own market. These are strictly unique in nature. These products might not have been in existence till they were introduced

•Core Product Revision/Significant improvements- these products are not born out of a major invention but carry significant improvements over their existing counterparts. They offer superior performance and hence replace existing products. These are changes in existing products in terms of form, functions and most importantly – benefits provided.

•Modified Products- Product line extension is the use of an established product’s brand name for a new item in the same product category. Line Extensions occur when a company introduces additional items in the same product category under the same brand name such as new flavors, forms, colors, added ingredients, package sizes. these products are modifications of the existing products. These may include new flavors, new perfume, new package, a revised size etc.

•Products new to company/New Product Line– these products are new to the company but not to the market. Introduce a new product item or product line to an existing market which they did not previously target. Often these products are similar to competitors’ products already available in the market but with some level of difference

•Repositioning- these products are existing products, but targeted at new segments or new markets for the reason like increasing market share, fighting local brands etc.

An augmented product is a product with additional features and services that set it aside from similar competitors. Companies augment their products to increase revenues, and may create additional streams of revenue in the process, depending on the types of products and services they offer.  The core product may be something like a computer. The manufacturer can add features like a warranty, customer support, membership with a club, or accessories that come with the computer, such as a laptop case or a keyboard.

Based on Opportunities/Type of Customer satisfaction

•Desirable products – are those that have high long term benefit and also give high short term satisfaction.

•Pleasing Products- are those that give high short term satisfaction but which may hurt the consumer interests in the long term.

•Salutary products – are those that give high long term benefit and give low short terms satisfaction

 

 

 

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