The essence of the concept of "new product"

Marketing

One of the main objects of attention each company is the development and introduction of new products. Of course, the new products - a relative term. Thus, according to certain estimates, only 10% of products appearing on the market can be attributed to the so-called new world. They form new appearance for its specific market. For most products innovation - is above modification of existing products, not absolute functional changes.
There are several approaches to understanding and classification of new products. So, in terms of law in many developed countries, the product is considered new only over time. For example, the US Federal Trade Commission restricts the use of the term "new product" six months since the start of its regular distribution on the market.
Depending on the degree of novelty for the producer and for the market (classification Buz Allen and Hamilton) new products are divided into the following categories:
- World novelty - completely new products;
- New product line - new for producer goods that allow it access to new markets;
- Expansion of existing product lines - new products that complement those that already producing company (new packaging, new components);
-udoskonalennya and modification of product;
- Repozytsiyovani goods - known goods offered in new markets (new consumer groups);
-products at discounted prices - new products offered at prices of existing analogues.
The novelty of the product in terms of the consumer is determined by how the product is perceived in the market, how to buy. According to this classification there are new products for customers three levels of knowledge about them.
Production of the first level requires new knowledge (research), because there is only a modification of long-known products.
Production of the second level changes the old practice of using the product, but also almost does not need a new study. These products once belonged electric toothbrushes, cars with automatic transmissions, automatic film and camera.
Production of the third level - a totally new products which have no analogues among existing ones. They need proper study of consumers (microwave ovens, personal computers).
The decision of the company for the development and market introduction of new products associated with greater risk. Therefore, the marketing practices used special methods of planning new products, various methods of decision making.