{"id":23979,"date":"2021-01-04T20:16:48","date_gmt":"2021-01-05T00:16:48","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=23979"},"modified":"2021-01-18T01:40:21","modified_gmt":"2021-01-18T05:40:21","slug":"product-development-marketing","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/product-development-marketing\/","title":{"rendered":"New Product Development in Marketing: Considerations"},"content":{"rendered":"\n

What does new product development in marketing entail? How does product research and development work in advertising? <\/p>\n\n\n\n

Product development in marketing is a process where a group works to create a product<\/a> and find the best marketing strategy for it. This process often requires years of research. <\/p>\n\n\n\n

Read more about product development in marketing and how it works.<\/p>\n\n\n\n\n\n\n\n

New Product Development in Marketing<\/strong><\/h2>\n\n\n\n

After years of working as a salesman, copywriter, and adman, in 1949, David Ogilvy (1911-1999) started his own advertising agency<\/a>. It became one of the most successful agencies in the world and in 1985, Ogilvy compiled his decades\u2019 worth of experience into Ogilvy on Advertising<\/a><\/em>.<\/p>\n\n\n\n

Ogilvy covers product development in marketing a part of his advice about advertising. <\/p>\n\n\n\n

Selling Products<\/strong><\/h3>\n\n\n\n

The ultimate goal of advertising<\/a> is to sell products, but in fact, the best way to sell products isn\u2019t to advertise them effectively\u2014it\u2019s to supply good products. <\/strong>In this part, we\u2019ll look at how to set up products for success using marketing and research. In the next part, we\u2019ll look at how to use this research to create effective advertising.<\/p>\n\n\n\n

There are three considerations when it comes to marketing:<\/p>\n\n\n\n

Product Development Considerations<\/strong><\/h4>\n\n\n\n

Product development in marketing starts with the product. <\/p>\n\n\n\n

Consideration #1: Quality. <\/strong>Improving the quality of your products (especially food products) will increase sales.<\/p>\n\n\n\n

Consideration #2: Novelty. <\/strong>80% of new products aimed at consumers fail. This is generally for two reasons:<\/p>\n\n\n\n

  1. They\u2019re too outside-the-box.<\/strong> For example, when cold cereal first came out, it was too novel\u2014people thought of cereal as a food that was hot.<\/li>
  2. They\u2019re too similar to what already exists.<\/strong> If a new product has no distinguishable benefit from what already exists (whether that\u2019s quality, price, convenience, and so on), people won\u2019t be interested.<\/li><\/ol>\n\n\n\n

    Products that are different versions of something that consumers are already familiar with tend to do well, such as disposable<\/em> diapers or diet<\/em> soda.<\/p>\n\n\n\n

    Consideration #3: Product names.<\/strong> Products that have good names sell better, and there are three kinds of names, each with its own advantages and disadvantages:<\/p>\n\n\n\n

    1. People\u2019s names. <\/strong>These are hard to copy, are easy to remember, and imply that a person designed the product. For example, Ford and Veuve Clicquot are named after people.<\/li>
    2. Invented names.<\/strong> Since these made-up words are unfamiliar, it takes a long time to build up sales appeal. For example, Kodak and Kotex are invented names.<\/li>
    3. Explanatory names.<\/strong> These names describe what products are or do. They initially have sales appeal, but the disadvantage is that they\u2019re too specific to be used for line extensions (creating new products under the same brand name). For example, Band-Aid is a descriptive name that only works for bandages. Dove, on the other hand, can be used for body soap, shampoos, dish soap, moisturizer, and so on.<\/li><\/ol>\n\n\n\n

      Once you\u2019ve chosen a name, do some further research on the following to determine the name\u2019s effectiveness:<\/p>\n\n\n\n