Question

Describe each of the four major categories of new product developments (new-to-the-company, improvement of existing product, extension of product line, and new-to-the-market). Use examples in our descriptions, and do not use the examples from the text.

Answer 1

The description for the four major categories of new product developments is explained below

Step-by-step explanation:

1. Launching a new-to-the-company product is very risky, and only about 10 percent of products created fall into this category. It’s characterized by innovative products and/or practices since no comparable product existed, Its goals include profitability and growth and could be very profitable due to monopoly advantage. It focuses on new opportunities and its owners are willing to take risks
2. improvement of existing products is an enhancement of a product already on the market—for example, a change of ingredients and packaging
3. extension of product line is a new product developed as a variation of an already existing product
4. and new-to-the-market is a good or a service that has not been available to consumers or manufacturers in the past

Answer 2

New-to-the-company: These are simple the development of products that are not new to the world (consumers out there) but is new to the said company producing it. A typical example would be in the case where; The Mercedes Benz company decides to develop 50 automated tricycles. This would be new to the Mercedes company but not to the world.

Improvement of existing product: These are processes carried out by a company to make an or a set of existing products better. It's basically upgrading a product by adding new features that would appeal more to the target consumers. E.g, Apple Company creating an Iphone 11 that has better features as compared to the existing Iphone 10.

Extension of product line: This is defined as the use of an already existing product brand name for a fresh item within the same product category. It is simply the introduction of extra features within a product category having the same brand. A typical example is seen with Coke Zero which is an extension of the normal Coke beverage drink only that the Coke Zero now has little or no sugar.

New-to-the-market: This is defined as a product or group of products that are introduced into a market and are seen as new, innovative, and unique to the target consumers. A typical example is introducing a Gas stove that automatically switches to solar when the gas runs out, things of that sort gets the attention of consumers.