Six Categories Of New Products in Marketing

Managers are usually not required to have technical know how. This means that it is possible to get away without knowing the details of what the employees do. But what about certain important terms given to products? In marketing, they do exist and it would be embarrassing for the manager to not know about them. This is true especially if the company makes products. They have six categories which are very important to understand because they are related to the success of the business. Below we go through the explanation of each.

1. New-to-the-world
What do we call a never before seen product? An invention. Its first setting is the lab. Only its inventor knows how to make it work. The average person on the street is hardly aware of anything about this new product. He needs to be educated about it. This instantly puts the invention under this category called new-to-the-world. It needs to be released with a manual so people know how to benefit from it. When it starts to gain popularity it creates a whole new market of its own.

There are some advantages and disadvantages to focusing on new-to-the-world category. Popularity of the new products can boost the reputation of the company. Additionally, it is possible to protect the designs through patents. In this way, the company can make sure that the business they are getting from the products will not be stolen by potential competitors.

marketing inventions
The disadvantage, however, is that it costs money to research and invent. On the top of that, nothing happens overnight. It can take several months or years for the product to fully form. Yet risk is associated with its release. Sometimes the product is so new that even its inventor has less idea about it. That can mean not being able to foresee glitches. Once released, this faulty product can leave the consumers unsatisfied and angry.

2. New-to-the-firm
How about a product that the company has never made, but is already in the market because other companies are making it? This means that the consumers are aware of how to use it. If the company decides to start making it, its category will be new-to-the-firm. Another marketing term for it is new product line. New-to-the-firm category can be far more relieving than new-to-the-world in the sense that the company does not need to generate knowledge to work on its products. Recruiting experienced and skilled employees for it is easy.
But when it comes to utilizing the new-to-the-firm category, it is always important to choose the product carefully. It must fit the image of what the company produces. Otherwise, disaster may befall. Think about the case of Google Plus. Many of us knew from the very beginning that it was going to bomb because of the potential users' doubt about its connection to Google, the most powerful search engine available today. Very few want their detailed profiles to be overly public and vulnerable to identity theft. Eventually, people thought exactly this way, leaving Google Plus with very less and sometimes dead profiles. 
3. Addition to existing product line
Go back to the first picture above to see the Fone Ring. At this point, it is considered an invention of someone else. What if Apple or Samsung decides to make it by themselves so they can offer it with their smartphones? Under such circumstances, this product would be known as addition to existing product line. The advantage of focusing on this category is that it can bring in some good profits. At this moment, however, most companies do the same through sales of headsets and Bluetooth. They are sold separately. It is a great way to offer convenience. 

That said, one disadvantage associated with this category is that if the main product is already expensive people may choose to get the generic version of such accessories. This can be reverted by locking the main product in such a way that it accepts only the ones made by the main company.

4. Improved and revised
When it comes to offering the best it is important to improve the product for re release. As a company embarks on doing so the marketing department working for them would place it under the category of improved and revised. Think about the cars. The manufacturers tend to modify them for annual re release. Same can be seen in all electronic items such as phones, computers and televisions. The consumers always enjoy some new additions. 
Keeping with such revision can be quite tiring for a company. Huge financial investment is another problem. But if the industry itself has such tradition there is nothing much the company can do. The only thing that can save them is the sophistication of the product. Think about BMW. For many years, its overall shape remained constant. People did not complain about it because they saw it as something that must be owned simply because of its high-end air. 
5. Repositioning 
A company may discover that one of its products already existing in the market has another good usage. To make sure that profit flows from this, they can release it again with such revelation. This would put the product in the category of repositioning. Aspirin is a good example of this. It was first released as a painkiller. But gradually, more of its benefits such as prevention of stroke and heart attack started to pop up. Now the product is known for such usage also. The company itself now has the freedom to market it that way.
The advantage of repositioning a product is that it secures a firm share of the market. Additionally, it attracts new consumers who before did not buy it for its original features. Moreover, researching for such aim is not at all difficult. But very few companies actually take time to focus on this category. One of them happens to be Wet n Wild. It is not taking advantage of the fact that its lipsticks contain the least amount of lead and that is powerful enough to defeat both Estee Lauder and Clinique.
6. Reduction in cost
This category has to do with products that are expensive, but can be made affordable for both the company and consumers. Change in materials or outsourcing the jobs to developing countries is the strategy used for this. Such a turn can certainly bring in more consumers who before could not afford its price. But the main disadvantage is low quality. Cheap materials can force the product to expire quicker. In some cases, it may simply be tough to use.  

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