Marketing foundations & Applications Essay Example | Topics and Well Written Essays - 2000 words

Marketing foundations & Applications - Essay Example Product development often becomes impossible and critised because of the following reasons: shortage of important ideas in certain areas; fragmented markets; social and governmental constraints; cost of development; capital shortages; faster required development time; and shorter life cycle. New product development often entails modifying an existing product or creating totally different offerings to satisfy a current need. In these product developments, business organizations may encounter hardships in identifying features which adds value to the customer. There are cases when current products cannot be enhanced because of shortage of ideas that can improve the offering. A good example of detergent soaps. Companies may be hindered in developing new detergent products which can boost the satisfaction of customer in this particular product. Next, product development can be unlikely because the business organization is operating in a fragmented market which implies that they need to aim their new products at smaller market segments thereby generating only meager profits and revenues. When developing new products, companies should take into account all of its current market and not just a segment of it. If not, the new product developed will completely change the positioning of the business organization in the industry and may also discourage their current customers in purchasing the new product. With the increasing clamor for being socially responsible, companies are often under the scrutiny and regulations of social organizations and the government. New product development can be critised because of the hazard that these products can bring to the consuming public. An example of this is the growing concern for obesity in the global arena which forces business organizations to modify their products and add only those which have more health