**1.3. Components of a product**

In product development discourse, marketers should understand the key components that make up any product, be it a good or service. The import of this is that it will enable companies to know what to incorporate in their product in order to produce a good and acceptable product. Products have three main components; the core, tangible, and augmented services.

**iii.** Licensing rights, such as Nigerian Bottling company makers of Coke under license from

Product Development and Management Strategies http://dx.doi.org/10.5772/intechopen.80345 15

**iv.** Franchising arrangement, like that of McDonalds or Kentucky Fried Chicken (KFC)

**v.** Management contracting, as a system of marketing expert services such as coaching and technical advisory jobs. For example, the job of Zidane at Real Madrid or Mourinho of

**vi.** Leasing, a written or implied contract by which an owner (lessor) of an asset grants another party (lessee) the right to use and possess it exclusively for a specified period of

**viii.** New product development option by which the company internally follows certain

Out of the aforementioned ways of obtaining a new product, the main focus of this section is

New product development (NPD) is a complete process of creating and bringing a new product to market. New product development is the process of exploiting market opportunity by turning it into a product or service available for sale. A good understanding of customer needs and wants, the competitive environment and continuous practices, and strategies to better satisfy the customer requirements and increase their market share regulate development of new products. The notion of new product needs to be explained here. By and large, the newness of a product depends on what the customer or target market consider as new. For this reason, a new product can be an invention (entirely new which does not exist before), innovation (new to the company but existing in the industry), or product modification (changing the package, size, design and other features). There are eight steps involved in new product

time based on some conditions in return for a periodic rental payments.

to discuss the process involved in developing a new product by a company.

Coca-Cola Inc. of USA.

throughout the world.

Manchester United.

**vii.** Hire purchase option for some specific assets.

stages to come up with a new product.

**2.1. New product development process**

development namely:

**i.** Idea generation

**ii.** Idea screening

**iv.** Business analysis

**vii.** Test marketing

**viii.** Commercialization

**vi.** Product development

**iii.** Concept development and testing

**v.** Marketing strategy development
