Lesson 9

PRODUCT DEVELOPMENT and PLANNING

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The number of new products coming into the market of western countries every year is overwhelming. The major part of these products is not new, but adaptations. It means that these products are not new, they are existing items to which a modification has been made. Only few products are really original or innovations. For instance a clock-television is an adaptation, but TV-set itself, the refrigerator - each was an innovation. A great number of innovations and adaptations are designed, produced and marketed by small businesses. Very often a new product is formed on the basis of the new business. Sometimes there is a patent to make the business more successful. But it happens very often that market research hasn't been done carefully.

Even in case larger scale producers do more research and testing there is no sure success. A promising new product may be also robbed of success by unreasonable prices, inadequate promotion and poor selling methods. Generally less than one fifth of all new products turn out to be profitable.

Active Vocabulary

product development- развитие производства

adaptation- что-либо переделанное, приспособленное

modification- модификация, видоизменение

innovation- нововведение, новшество

patent- патент

large scale producer- крупный производитель

promising product- перспективный продукт

unreasonable price- неразумная цена

inadequate- не соответствующий требованиям