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Product development and planning

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 розвиток виробництва
adaptation щось перероблене, пристосоване
modification модифікація, видозміна
innovation нововведення
patent патент
large scale producer крупний виробник
promising product перспективний продукт
unreasonable price непродумана ціна
inadequate недостатній, той що, не відповідає вимогам
Comprehension Questions
1. How can you explain the term adaptation?
2. What is an innovation?
3. Give your own examples of innovations and adaptations.
4. Why are many innovations and adaptations manufactured and marketed by small businesses?
5. Why is it so important to obtain a patent?
6. Why does the failure of a new product take place?
Vocabulary Practice
Exercise 1. Choose the necessary word and put it in the sentence.
1. Though market research tries to predict the trends, there is no sure... 1 adaptation
2. This product isn't original, it is an... 2 innovation
3.... office receives applications from many young inventors. 3 inadequate
4. If the price is..., the product won't be sold out. 4 patent
5. A clock-television is an adaptation but the television itself is an... 5 failure
6. If a sure... is stopped, money and time I can be saved. 6 success
7. They failed because of... promotion campaign. 7 unreasonable
(Dick and Jack are having lunch. Dick is Vice President in charge of Product Development. And Jack is Vice President in charge of the Legal Department).
Dick How are the things?
Jack Great. We are busy with a new line of clock-television.
Dick Sounds interesting. Are you going to apply for a patent soon?
Jack Yes, we are. We are preparing the necessary papers now.
Dick And what did the Market Research say by the way?
Jack They think there is fair market for the product at the moment but it will take a
few years to catch on.
Dick I see. We'll have to turn a good promotional campaign.
Jack Without doubt.
Dick Well, it will be our advantage to have the patent on it as well. You have decided on the size, haven't you?
Jack We'll start with a small screen model. It will have a wake-up button and go-to-sleep button with timers. Market Research says that the automatic go-to-sleep button may be the bigger selling point.
Dick Yes. The idea of a set that turns itself off is great. To tell you the truth I'm always falling asleep in the middle of the show. Now it can be done.
Jack Well. In future we'll probably expand the line to include different size screens and colour.
Dick That's good.
Jack I think we are close to a big success.
Dick That is why we must be very careful. Before we begin to market television we must fulfil the most complete testing.
Jack You are right.
Dick What about the pricing? Has it been worked out?
Jack Not completely. Market Research Department says we can't have too high price on this kind of item.
Dick It's evident we must be very careful.

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