The Need for Product Innovation

Developing new products and launching them in the marketplace can be a difficult, costly and even dangerous business. So why do it? Why not leave well alone and be content with profit from existing products, concentrating effort on expanding sales of these products and finding new markets for them?

One reason is that seizing new opportunities as they emerge is a way to increase profits. (To be first in the field with a successful new product gives one the chance of creaming off large profits before effective competition develops.) But the main reason is that it is dangerous to assume that profits from existing products will continue at present levels for ever. The product life-cycle concept tells us that they will certainly not continue for ever. At different rates, over varying time-scales, all products eventually achieve market saturation and then start to decline. Even while sales volume holds up, profits may well not; and retaining sales volume and profits may call for regular updating of existing products.

For most companies, therefore, a programme of product review and development is essential; and, for all companies, to ignore this area of activity is highly dangerous. A McGraw-Hill study in the United States showed that in 1963 the percentage of sales accounted for by products introduced since 1959 was 28 per cent for transportation, 18 per cent for electrical machinery, and so on, through a whole list of categories. In the consumer goods fields successful new products introduced more recently -include a wide range of increasingly sophisticated computer games, the ‘superglues’ and a whole host of pre-prepared meals for cooking by microwave.

In consumer durables we have seen the successful introduction of video cameras and answering machines, with mobile telephones and fax machines for home use not far behind. Innovative services (intangible products) include direct purchase of insurance by telephone and ‘home banking’.

The most ‘safe’ and inexpensive way to launch a ‘new’ product is modifying an existing product.

New Products from Old

We first need to be clear what is a new product. There are basically three clear kinds of new products:

1. Innovative products which are unique products for which there is a real need, not being met satisfactorily by an existing product. Penicillin when first introduced fell into this category, as did the telephone, the internal combustion engine, and chloroform. We can also describe as innovative those products which, while replacing existing goods that have been satisfying existing markets quite well, offer totally different solutions. Examples would be television partially replacing the cinema and the radio, the zip fastener and later Velcro instead of strings or buttons, and solar power for other energy sources;

2. Adaptive products which offer significantly different variations on existing products: they include such items as instant coffee, freeze-dried foods, self-adhesive wallpaper, and typewriters with a memory. Another kind of variation is represented by package changes, styling modifications, new designs and colours.

3. Imitative products are already being sold by someone else but further sales opportunities exist for an additional brand, with or without minor modifications. The divisions between these categories are obviously very fuzzy. Indeed, some authors have distinguished as many as a dozen different ways in which a product can be ‘new’.

The truly innovative product is rare. Adaptive new products can sometimes necessitate a great deal of new technology and extensive research and development, though a ‘new’ product can often be produced by changes to an existing one. These may range from relatively minor changes, which effectively extend the life-cycle of a product, to much more extensive improvements.

An example quoted by Peter Drucker that covers both is nylon, which was introduced in the U.S.A. by Du Pont and fairly rapidly became the dominant fiber in women’s hosiery. However, once this market was saturated, the growth curve flattened. Du Pont had anticipated this and had developed strategies for providing further increases in sales of nylon stockings by such tactics as the following:

1. Introducing a wider range of colors, leading to an increase in the number of stockings bought by each user and a tendency to wear different colors with different outer garments.

2. Developing new uses, such as stretch stockings and socks. In addition, they moved into other fields such as tyre cord and carpets. In this way nylon sales showed an overlapping series of life-cycle curves, giving a continuing upward trend.

The nylon success story depended both upon changing the product for existing users and making it suitable for whole new markets. Changing products for existing markets can be done in a number of ways, in particular by improvements in quality, features, and/or style.

Popularize Your Brand With Corporate Digital Production

Video marketing is the new black as a far as the corporate world is concerned. A study by Forrester Research projects over 74% of all online IP traffic will be video by 2017. What’s more, the 2014 Online Production Survey and Industry Trends Report say 65% of viewers watch more than three quarters of your content.It even gets better; the Online Publishers Association (OPA), in a study, found that 52% of marketing professionals worldwide name this type of content as the one with the best ROI in a sample of 10. The numbers go on and on, and you can’t deny that the prospects of using video production get even more appealing.Enhancing Brand Visibility in Visual MotionAs a suave entrepreneur, you appreciate the power of this form of digital content for your business. It dovetails with your branding campaigns that are all about making your enterprise more visible.Why digital marketing as opposed to myriad other branding techniques? Take a look.1. Instant AppealOne thing that these corporate productions have going for them is the fact that they appeal to a combination of senses. By combining audio and visual, you are assured that your corporate image will instantly make a lasting impression on the mind of a viewer.2. Wider ReachYour brand needs to spread its reach all over the globe. With the International Telecommunications Union (ITU) reporting there are three billion internet users, your material can spread like wildfire if you have impressive ideas. With amazing visuals, you can bet viewers will be sharing the same within minutes of viewing.3. More ContactIf you are to make an impression on your target market, they must interact with your content longer. With video production, you are assured a viewer will spend more time watching your explainer media or company launch thus learning even more about your company.4. VersatilityWhatever type of business you are running there is technology to suit your needs in enhancing your profile online. You can opt for animations, short films or web materials, and landing page projects, among many others. This flexibility makes it the most ideal form of corporate branding.5. Content RetentionA Cisco Visual Networking Index study in 2013 says that people retain 50% of a visual as opposed to only 22% of written information. To create a lasting impression about your company, you need a technique that will create indelible memories in the mind of your target clients. This is exactly what corporate motion information seamlessly achieves.There are many other ways through which video production improves your ROI. It is an affordable way to rake in the numbers and improve your search engine ranking. Can it get better than that?

Importance Of The Cost Price Of Products During Their Marketing Procedure

The main key of earning profit lies in your own hands. If you can make the customers understand that the amount of money that they are paying for a certain product is exactly what it worth then they will even not deter from purchasing it at a really high cost.But you have to successfully satiate their queries as to how the product is capable of meeting all the needs of the group of customers. You must always try to concentrate on the prospective of cost and not sound as it has been seen that the customers feel more connected to the cost rather than in its price.If a company is producing a quality product then it will definitely want to purchase it at a price that will be more than the rival products in order to gain more profit out of it. But keeping an excessive high price where the product does not worth it will definitely not be of much help.The benefits should be in accordance with the price quoted. You will have to sell these benefits by making use of a strong marketing campaign that will justify your point of view regarding the high cost price of the products that are to be sold. Campaigning about the unique features of the items that your company is concerned with has to be done during the presentation period.If you fail to make the customers understand about the real worth of the item hen you are likely to fail too in achieving the desired profits from that excess amount. If you can carry on with the presentation plan quite a time ahead of the launching time of the product then you are likely to catch the attention of the customers soon. It will help you in creating a very positive mind set up among the buyers which instigate an increased sales rate and in turn the profit of the company.