Maximizing Market Effectiveness: Product Decisions

Customers are not attracted to products, but to the benefits that the product can bring. Thus, the organization must adopt a market-oriented approach to product development, rather than a product-oriented approach. Understanding the process known as the product life cycle can be useful for the marketer who combines this understanding with a thorough knowledge of the individual market. The product can be understood in terms of its growth, maturity, or decline. An organization that does not wish to remain stagnant will be concerned with the selection and development of new products. To do this effectively, it will have to take a general view and a specific view of product market development. New product ideas come from customers, scientists, competitors, salespeople, and top management. New techniques used to generate and develop new ideas must be critically evaluated and screened.