Product Research

 | June 16,2010 05:30 pm IST

Developing and designing great products are keys to success in business. Anything less than an excellent product strategy can be destructive to a firm.

Top companies’ focus on few products and concentrate on maintaining a high level of quality for those products to maximize the potential for success. For instance Honda’s focus is engines. Virtually all of Honda’s sales e.g. autos, motorcycles, generators, lawn mowers, are based on its excellent engine technology. Likewise, Intel’s focus is on computer chips, while Microsoft’s is on PC software.

 
However, most products have a limited and even predictable life cycle and companies must be constantly looking for new products to design, develop and take to market. Good operations managers insist upon strong communication between customer, product, processes, and suppliers that results in a high success rate for their new products.

 

One product strategy is to build particular competence in customizing goods or services. This approach allows the customer to choose product variations while reinforcing the organization’s strength. Dell Computers, for example, has built a huge market by delivering computers with the exact hardware and software desires by the end user. And Dell does it fast – it understands that speed to market is imperative to gain a competitive edge.

 

Many service firms also refer their offerings as products. So while the term products may often refer to tangible goods, it also refers to offerings by service organizations.

 

An effective product strategy links product decisions with investment, market share, product life cycle, and breadth of the product line. The objective of the product decision is to develop and implement a product strategy that meets the demands of the market place with a competitive advantage.

 
Goods and services selection is very important. How management selects those?

 

Marketers see product research as the first stage in Product Life Cycle Management. Product research is a business and engineering term which describes the complete process of bringing a new product to market. There are two parallel aspects to this process :


1. Product engineering
2. Marketing analysis.


 Types of New Products
There are several types of new products. Some are new to the market, some are new to the firm, and some are new to both. Some are minor modifications of existing products while some are completely innovative. These are displayed in the following diagram.

 

 

                                  

.






   

Post new comment

The content of this field is kept private and will not be shown publicly.
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions. CoolAvenues.com is not responsible for the views and opinions of the posters.
4 + 12 =
Solve this simple math problem and enter the result. E.g. for 1+3, enter 4.

Comments


Václav Chromý on 10/17/11 at 05:52 pm

Hello,

this is very interesting article. I would like to ask, if somebody has some really good and systematic source for information about product research and its process.
I am writing thesis about product research and have some complications to get literature.

Thanks to everybody.

Best regards,

Bc. Václav Chromý