Product Development: Meaning, Elements and Uses

Meaning of 'Product Development'

By the term 'product development' is meant adding of some new thing in the product category, designing of the things being al­ready manufactured from beforehand, and impraing the size, utility, characteristics and the merits of the product. The following are some of the main definitions of the product development:

In the opinion of Stanton, Undertaking the technical activities pertaining to the research, engineering and the design about the product, is known as product development.

In the view of Lipson and Darlin, Product development is that process in which ordinarily for the prescribed period of one year, the new things are added; the current things are removed and amended.

Some scholars include the following within the product deve­lopment:

                       i.) Adding some new product to the category of the product;

                     ii.) Improving the product already, being produced so far;

                   iii.) Improvements in the packing.

Elements of the Product Development

The following are the elements of the product development

(1)   Development of a New Thing. To achieve success over the hard competition, it is also one of the means that the new things be developed. By the new product is meant that commodity which the company has not been manufacturing from beforehand.

(2)   Improvement of the Product. The term 'product develop­ment' means the changes undertaken in the quality, form, size and ap­pearance of the thing. Every manufacturer tries to know from time to time about the fact whether by making changes in the products, I lie profit could be earned more. Many a times, due to the decline in the sales, and increased competition, some changes have to be ef­fected in the product.

(3)   Improvement in Packing. Effecting improvements in packing too is an element of the product development. By packing improvement is meant packing the products in separate packets in convenient quantities, so that the customer could take them up conveniently and there might not be any sort of breakage and loss, etc.

Advantages of Product Development

The following are the main advantages of product develop­ment:

(1)   Addition to the Concern's Goodwill. Such commercial concerns which always pay attention to the product development, are able to develop good credit or reputation in the market and the market of the products manufactured by them becomes almost stabilized.

(2)    Satisfaction of Consumers is Increased. Due to the product development, the consumers continue to get good things which add to their satisfaction.

(3)   Increase in the Profits of the Undertaking. The con­cerns or units which always continuously take care of the product development don't become afraid of the competition. They could enjoy the benefits of the technical changes and might also take the advantage of the changes in the consumers’ taste and temperaments, fashions, etc. Ultimately, due to the product-development, there is an increase in the profits of the business concern.

(4)   Industrial Stability. By not paying attention to the product development, there remains the fear of the thing going out of use and many a times, it leads to a dangerous situation for the concern. Really, the product development is very much essential for the industrial safety.