 New Product Development–

 The following steps are recommended in developing of products:

1. Exploration – The first stage of the new product evolution begins

with an idea for the product. Ideas may originate from the
following sources:
 Own research and development -

 Distributors

 Competitors

 Professional inventors

 A firm must always keep a collection of ideas ready in stock, because the
creation of new products is a condition of survival in many industries.

2.Screening – The ideas collected are scrutinized to eliminate those

inconsistent with the product policies and objectives of the firm.
The main intention of this phase is only to eliminate unsuitable
ideas as quickly as possible. The procedure adopted includes:
 Expanding each idea into full product concept

 Collecting facts and opinions to decide whether the product idea could be
converted into a business proposition

 Assessing each idea for its potential value to the company.

3.Business Analysis – It is a continuation phase of screening. Here

creative analysis is applied to the idea finally selected. Product
features are analyzed and a rough programme for its development is
fixed. Here emphasis is on the following:
 Further study on each idea in a detailed manner

 Determining the desirable market features for the product and its
feasibility
 Developing specifications and establishing a definite programme for the
product

4.Development – It is during this period that all developments of the

product, from idea to final physical form put into action. At this stage
final decision whether a product be developed or not also taken. Once
decided to go forward with the product ides following points to be taken
care:
 Establishing development projects for each project

 Building the product with the changed specifications, if necessary

 Competing laboratory evaluation and realizing the product for testing.

SKILLS WHICH ARE REQURIED

In order to perform the function and to assume multiple roles , there are
different skills are needed .

• Conceptual skill – Involves formulation of idea

• Human skill - Involve ability to interact effectively with people

• Technical skill –Involves process and technique knowledge and

proficiency
 Conceptual skill – use by top level

Human skill - use by middle level

Technical skill - use by lower level

ABOUT THE PRODUCT

Product - Palmtop
Product Name - Sonie..
Features-

Portable - 15 Х 10 cm. – For handy to use

RAM - 112 MB - For maintaining low cost

Hard Drive- 20 GB - For storing important data

Processor - 1.6 Ghz - For fast speed

Bluetooth - 2.0 - For connectivity

Browser - Opera – For fast surfing

JAVA - Yes - For installing program

GPRS - Yes - For maintaing connectivity

Screen - 14 cm.TFT – For better picture quality

Price - 31999 rs.

 Testing –

It is done to assess whether the product meets the technical and

commercial objectives envisaged in the original proposal. The three
types of tests usually conducted are:

 Concept Testing – It is concerned with measuring customer reactions

to the idea or concept of a product.

 Product Testing – This test will prove whether the product lives up to
the promise of the concept.

 Test Marketing – This test will evaluate and determine complete

marketing plan which would include advertising, distribution, sales
volume forecast, pricing etc.
 Commercialization –

Here the product is submitted to the market and thus commences its
life-cycle. This stage is thus critical and so advertising and personal
selling should be effective and proper outlets should be arranged for
distribution. The following activities are usually undertaken during
this stage:

 Completing final plans for production and marketing

 Initiating coordinated production and selling programmes

 Checking results at regular intervals

PROMOTIONAL SCHEME –

• Advertisement on television , mobile, radio , news paper

• Brand ambassador – Shahrukh Khan

• Attractive offer –

Free GPS subscription for one month

Free headphone

Free service on location up to 6 month

Product Life Cycle-Product Life Cycle –

A new product progresses through a sequence of stages from

introduction to growth, maturity, and decline. This sequence is known
as the product life cycle and is associated with changes in the
marketing situation, thus impacting the marketing strategy and the
marketing mix.
  Introduction Stage
 In the introduction stage, the firm seeks to build product awareness
and develop a market for the product. The impact on the marketing
mix as follows:

 Product branding and quality level is established, and intellectual

property protection such as patents and trademarks are obtained.

 Pricing may be low penetration pricing to build market share rapidly,

or high skim pricing to recover development costs.

 Distribution is selective until consumers show acceptance of the

product.

 Promotion is aimed at innovators and early adopters. Marketing

communications seeks to build product awareness and to educate
potential consumers about the product.

Growth Stage-
 In the growth stage, the firm seeks to build brand preference and
increase market share.

 Product quality is maintained and additional features and support

services may be added.

 Pricing is maintained as the firm enjoys increasing demand with little

competition.

 Distribution channels are added as demand increases and customers

accept the product.

 Promotion is aimed at a broader audience.

Maturity Stage

 At maturity, the strong growth in sales diminishes. Competition may

appear with similar products. The primary objective at this point is to
defend market share while maximizing profit.

 Product features may be enhanced to differentiate the product from

that of competitors.

 Pricing may be lower because of the new competition.

 Distribution becomes more intensive and incentives may be offered

to encourage preference over competing products.

 Promotion emphasizes product differentiation.

Decline Stage-
 As sales decline, the firm has several options:

 Maintain the product, possibly rejuvenating it by adding new features

and finding new uses.

 Harvest the product - reduce costs and continue to offer it, possibly to
a loyal niche segment.

 Discontinue the product, liquidating remaining inventory or selling it

to another firm that is willing to continue the product.

The marketing mix decisions in the decline phase will depend on the
selected strategy. For example, the product may be changed if it is being
rejuvenated, or left unchanged if it is being harvested or liquidated. The
price may be maintained if the product is harvested, or reduced drastically if
liquidated
 SWOT analysis is a strategic planning tool use to evaluate
STRENGTH , WEAKNESS, OPPORTUNITIES , and THREATS
involve in a project.

STRENGTH---

• Portable
• GPS enabled
• Browser enabled
• High performance
• Looks
• Size
• Bluetooth

WEAKNESS –

• Low Battery backup

• High heat produce
• Low memory
• Slow speed

OPPORTUNITY—

• Low price
• No other device in this price range
• Boom in IT sector
• High price of laptop
• Low cost of internet
THREAT

• Designing of new product always raises a number of

problems. One of them is their failure in a very short span
as consumers are becoming more selective in their choice of
products. The failure is also due to the introduction of new
substitutes as well as to technological innovations. The
following are usual reasons advanced for the product
failure.

• Inadequate market analysis

• Product defects

• High costs

• Poor timing

• Competition

• Poor marketing efforts

• Inadequate sales force

• Weakness in distribution

RESULT AFTER COMPLETION—

SONIE make a big boom in IT sector and in human life also.

It also has the capacity to replace the laptops due to his size
and easy to use feature.