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Saturday, 22 September 2018

Producer's Criteria For New Products




When should the products add a new product to its current assortment of products? The following are guidelines that some producers used in answering the questions :

1. They must be adequate market demand. The necessary first question is, "do enough people really want this product"?

2. The product must satisfy financial criteria. At least three questions should be asked ; "is adequate financing available"? "will the new product reduce seasonal and cyclical fluctuations in the company's sales"? and most critical, "can we make sufficient profits with the products"?

3. The product must be compatible with environmental standards. Key questions includes ; "do the product processes avoid polluting the air or water"? "Will the finished product, including the packaging be friendly to the environment"? And after being used, "does the product have recycling potential"?

4. The products must fit into the company's present marketing structure. Specific questions related to whether a new product will fit the company's marketing expertise an experience includes ; "can the present channel of distribution be used"?

5. The product must be in keeping with the company's objectives and image.

6. The product must be compatible with firm's production capabilities.

7. The product must satisfy any patent legal requirements.