Previous

Page - 2

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.

Product Options

Management has many options in the selection, definition, and design of goods and services. Product selection is choosing the good or service to provide customers or clients. For instance, hospitals specialize in various types of patients and various types of medical procedures. They select their product when they decide what kind of hospital to be. A hospital's management may decide to operate a general-purpose hospital, a maternity hospital, or even a hospital specializing in heart diseases. Numerous other options exist for hospitals, just as they exist for restaurants and automobile companies.

Product decisions are fundamental and have major implications throughout the operations function. They influence capital equipment cost, layout design, space requirements, the skills of people hired and trained, materials, and the processes used.

Next

* Contributed by: -
Vidhu Goyal,
Graduate from IMT Ghaziabad, Batch of 2006,
Currently working with Max New York Life in Gurgaon.