1. Abu Bashar

2.  Productivity refers to the physical relation
between the quality produced (output) and
the quantity of resource used in the course of
production (input)
 Productivity (P) =output (O)/input (I)
 Output implies production while input means
land, labour, capital, management etc.
 Productivity measures the efficiency of the
production system.
 Higher productivity means producing more
from a given amount of input or producing a
given amount with minimum level of inputs.

3.  Productivity and production are two different
terms.
 Productivity is a relative term indicating the ratio
between total output and the total inputs used
therein on the other hand production is an
absolute concept, which refers to the volume of
output.
 The volume of production may increase but
productivity may decline due to inefficient use of
resource.
 Efficient use of input may increase productivity
but the volume of production may not increase.
 Production refers to the end result of production
system whereas productivity reflects its
efficiency.

4.  Benefits derived from higher productivity are as
follows:
 It helps to cut down cost per unit and thereby
improve the profits.
 Gains from productivity can be transferred to the
consumers in from of lower priced products or
better quality products.
 These gains can also be shared with workers or
employees by paying them at higher rate.
 A more productive entrepreneur can have better
chances to exploit export opportunities.
 It would generate more employment
opportunities.

5.  Productivity may be measured either on
aggregate bases or on individual basis, which are
called total and partial productivity respectively.
This index measures the efficiency in the use of all the resources.

6.  Partial productivity Indices, depending upon factors used,
it measures the efficacy of individual factor of production.
 Following are productivity indices for individual inputs.

7.  Productivity is outcome of several interrelated
factors, which may broadly be divided into two
categories- human factors and technological
factors.
 Human Factors: (a) Ability to work and
(b) Willingness to work
 Technological Factors
 Managerial factors
 Natural Factors
 Sociological Factors
 Political Factors
 Economic Factors

9.  A product that opens an entirely new market
 A product that adopts or replaces an existing
product
 A product that significantly broadens the market
for an existing product
 An old product introduced in a new market
 An old product packaged in a different way
 An old product marketed in a different way

10.  Innovative products
 New product lines – to allow the firm to enter an
existing market
 Addition to product line – to supplement the
firm’s existing product line
 Improvements and revisions of existing product
 Repositioned products – existing products targets
at new market
 Cost reduction new product that provide similar
performance at lower cost

11.  New to the world – high definition TV, ipod, flat
screen TV, Probiotic Ice Cream
 Product improvement & replacement :SPEED by
BPCL
 Cost reduction new product: Moser Baer.

12.  Increase/defend market share by offering more
choice or updating older products
 Appeal to new segments
 Diversify into new markets
 Improve relationship with distributors
 Maintain the firm’s reputation a leading
edge company
 Even out peaks and troughs in demand
 Make better use of the organization's
resources

13.  To replace declining product
 To take advantage of new technology
 To defeat rivals
 To maintain/increase market share
 To keep up with rivals
 To maintain competitive advantage
 To fill gap in the market

14.  This is the strategic stage
 The firm assesses
 It current product portfolio
 Opportunities and threats
 The firm then determines the type of
product which would best fit in with the
corporate strategy

15.  New product development is a
process which is designed to develop,
test and consider the viability of
products which are new to the
market in order to ensure the Growth
or survival of the organisation.

16.  Idea Generation
 Idea Screening
 Concept development and
testing
 Market strategy development
 Business Analysis
 Test marketing
 Commercialization

17.  Idea generation is continuous, systematic search
for new product opportunities. It involves
delineating sources of new ideas and methods for
generating them.
 Ideas for new products can be obtained from basic
research using a SWOT analysis
(OPPORTUNITY ANALYSIS), Market
and consumer trends, company's R&D department,
competitors, focus groups, employees, salespeople,
corporate spies,

18.  The object is to eliminate unsound concepts prior to
devoting resources to them.
 The screeners must ask these questions:
 Will the customer in the target market benefit
from the product?
 What is the size and growth forecasts of the
market segment/target market?
 What is the current or expected competitive
pressure for the product idea?
 What are the industry sales and market trends the
product idea is based on?
 Is it technically feasible to manufacture the
product?
 Will the product be profitable when manufactured
and delivered to the
customer at the target price?

19.  Concept testing present the consumer with a
proposed product and measure attitudes and
intention at this early stage of development.
 Concept testing of prototypes
can help avoid costly mistakes.

20. Includes development of three part strategy plan
1. Describe the market’s size, structure, and
behaviour, the planned product positioning, and
the sales, market share, and profit goals for first
few years.
2. Outlines the planned price, distribution
strategy, and marketing budget for the first
year.
3. Describes the long-run sales and profit goals and
marketing-mix strategy over time.

21.  Estimate likely selling price based upon
competition and customer feedback
 Estimate sales volume based upon size of
market
 Estimate profitability and breakeven point

22.  Test marketing involves placing a product
for sale in one or more selected areas and
observing its actual performance under the
proposed marketing plan

23.  Commercialization involves implementing a total
marketing plan and full production
Launch the product
Produce and place advertisements and other
promotions
Fill the distribution pipeline with product
Critical path analysis is most useful at this stage