**1. Introduction**

Marketing can be defined as an exchange which consumers expect to benefit from the firm and firms expect more market share, customer share and more pay. As a result of the fact that the market is dynamic, expectation of more customer share from customers in this exchange requires marketing to be managed with new techniques and strategies. The 7P mix, which classifies marketing's

© 2016 The Author(s). Licensee InTech. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. © 2018 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

basic strategies and tactics in seven main categories, can be described as 7 N to emphasize the importance of managing the innovation process in marketing. **Figure 1** explains the transition process from 7P to 7 N and the marketing success because of mutual interactive interaction of 7P and 7 N. **Figure 1** illustrates the need to not only reactively implement but also proactively implement marketing mix elements. Mutually and integrally, management and implementation of the marketing mix elements are also important for handling new products, new prices, new places, new promotions, new physical environment, new processes and new people.

According to Fojt [1], the general view about new product development (NPD) is that it brings considerable profits to the businesses if new product is introduced to the market at the right time, is priced at the suitable amount and targets suitable customer group. Accuracy of this view was questioned by Fojt [1], and it was stated that NPD can result in new profit or loss. It is advised that various questions should be answered by the managers before new product decisions to determine whether NPD will bring profit or loss to the business. These questions are:


There are several descriptions made for product term in the literature. Few descriptions will be given here to make clear what it is meant by product.

Product is defined as an entity that is brought to a market for attention, acquisition, use or consumption which meets a need of consumers. Product does not mean only tangible items such as houses, foods and computers but also intangible items such as services including thoughts, events, organizations, persons, places, etc. or a mixture of these. Services are the form of product that consists of activities, benefits or satisfactions offered for sale. Therefore, product is a broad term which defines all those things [2]. **Figure 2** summarizes the elements of a product.

Definition of product term does not stay stable and changes constantly during the time. Before, product was defined as what is produced by businesses, but today it is defined as a want of a customer provided or satisfaction of a customer met in an exchange. Satisfaction can

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Various definitions and explanations of its boundaries about 'new product' have been made in the literature. New product is defined by Crawford as 'a product for which the company needs a new marketing, and in which the substantial changes are conveyed but excludes any

To make NPD effective, there should be a coordination between the manufacturing, engineering, research and development (R&D), marketing, finance and purchasing departments. Marketing department first has to make an assessment about new product, and then a crossfunctional team created for the new product has to come into the scene for development of

There are several types of classifications for 'new product'. One of these categorized new

be physical or psychological. Therefore, product includes more elements [3].

**Figure 2.** Components of a product. Source: Adapted from Chunawalla [3], p. 2.

**2. New product development (NPD)**

changes that may require simple promotions' [4].

product into four groups. These are [6]:

new product [5].

**Figure 1.** Components of marketing mix.

Theory of New Product Development and Its Applications http://dx.doi.org/10.5772/intechopen.74527 59

**Figure 2.** Components of a product. Source: Adapted from Chunawalla [3], p. 2.

Definition of product term does not stay stable and changes constantly during the time. Before, product was defined as what is produced by businesses, but today it is defined as a want of a customer provided or satisfaction of a customer met in an exchange. Satisfaction can be physical or psychological. Therefore, product includes more elements [3].
