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tems in each Many different product lines with a few items in each Few product lines with a number of items in each Narrow Broad Shallow Deep P r o d u c t L i n e B r e a d t h Product Line Depth Low Low Low Low Low Low High High High Price High High High Quality Present product Present product Present product New product New product New product New product Stretching downward Stretching upward Stretching bothways Product line stretching decision Why a firm need new products? New products lead to sales growth or stability offer differential advantages Respond to consumer needs Risk may be lessened through diversity Increase profits and control Major issues in newproduct development Idea generation Idea screening Concept development and testing Marketing strategy Business analysis Product development Test marketing Commercialisation Product Life cycle Introduction The product is target to a particular market and introduced to that market Growth The product bees wellknown in the market and sales volume increases Decline The volume declines as demand for the product declines or petition increases. Maturity Sales hit a peak then begin to level off as a result of petition from new and existing products. St a g e in L if e C y c le C ha r a c t e r is t ic sI nt r o du c t io n G r o w t h M a t urit y D e c lin eM a r k e t i n g o b je c ti v eA ttr a c t i n n o v a to r sa n d o p i n i o n l e a d