Tuesday, 28 May 2013

Product Development (Niche Development)

Successful marketing programs are built around two essential elements i.e. products and markets. The product is very important to marketers because it is the heart of an organization’s marketing mix as all other variables of the marketing mix are built on product. Without a good product that possess adequate want-satisfying capabilities; a fair pair, persuasive promotion campaign and an excellent distribution channel have no value.

What is a product?

Alderson (1957) defined a product as “a bundle of utilities consisting of various product features and accompanying services”. This product is provided by the seller who sells a particular combination of features and associated service. What this implies is that a product comes into play in an exchange and this is why it is sometimes referred to as what a seller has to sell and what a buyer has to buy.
Product development is the creation and adjustment of goods and services in order to satisfy consumer’s demand. It is in an adjustment in a company’s product mix in response to changes in buyers’ preferences. This is why the provision for satisfaction should be primary in any product development effort. Consumers pay their money to obtain satisfaction and not in specific technical features, hence any product to developed should aim at solving some problems either for industrial user or the ultimate consumer.
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