New products can be classified into the following categories. The classification and types of new products with details are given below.
Classification of New Products
- New Product Lines
- Completely New Product
- Line Extensions
- Core Product Revisions
- Changes to Augmented Product
Classification of New Products by Kotler
Father of modern marketing, Dr. Philip Kotler suggests the following types of new products
New to the World Products
Completely New Product and Innovative product for the public
New Product Lines
Company or Marketer can add completely new product line
Addition to the existing product lines
Marketer can add new product to the existing product line
Improvement and revision of existing products
The product can be relaunched with the same or new name by doing some modifications or improvements in the existing products.
The product can be re-positioned for another segment. For example: Recently, Cadbury repositioned GEMS – Kids favourite product. Now Cadbury GEMS is targetting adults also. For that purpose, Cadbury changed packaging and colour combinations.
Companies can reduce costs by adopting new innovations or techniques. For example Hero Splendor and other two wheeler. They reduced cost by replacing steel with fiber or plastic made parts and also offered great durability and flexibility. So companies can reduce cost without compromising quality.
Types of New Products (Another Classification)
Factors or criteria for basis:
- The long term consumer welfare
- Immediate satisfaction
Desirable Product: If Both, The long term consumer welfare as well as Immediate satisfaction is HIGH
Deficient Products: If Both, The long term consumer welfare as well as Immediate satisfaction is LOW
Salutary Product: If The long term consumer welfare is HIGH & Immediate satisfaction is LOW
Pleasing Product: If The long term consumer welfare is LOW & Immediate satisfaction is HIGH
This is all about various ways to understand classification and types of New Products.