Skip to content
Home » Types of New Products – 3 Ways of Classification

Types of New Products – 3 Ways of Classification

New products can be classified into the following categories. The classification and types of new products with details are given below.

Classification of New Products

  • New Product Lines
  • Completely New Product
  • Line Extensions
  • Core Product Revisions
  • Re-positioning
  • Changes to Augmented Product

Classification of New Products by Kotler

Father of modern marketing, Dr. Philip Kotler suggests the following types of new products

New to the World Products

Completely New Product and Innovative product for the public

New Product Lines

Company or Marketer can add completely new product line

Addition to the existing product lines

Marketer can add new product to the existing product line

Improvement and revision of existing products

The product can be relaunched with the same or new name by doing some modifications or improvements in the existing products.

Re-positioning

The product can be re-positioned for another segment. For example: Recently, Cadbury repositioned GEMS – Kids favourite product. Now Cadbury GEMS is targetting adults also. For that purpose, Cadbury changed packaging and colour combinations.

Cost Reductions:

Companies can reduce costs by adopting new innovations or techniques. For example Hero Splendor and other two wheeler. They reduced cost by replacing steel with fiber or plastic made parts and also offered great durability and flexibility. So companies can reduce cost without compromising quality.

Types of New Products (Another Classification)

Factors or criteria for basis:

  1. The long term consumer welfare
  2. Immediate satisfaction

Desirable Product: If Both, The long term consumer welfare as well as Immediate satisfaction is HIGH

Deficient Products: If Both, The long term consumer welfare as well as Immediate satisfaction is LOW

Salutary Product: If The long term consumer welfare is HIGH & Immediate satisfaction is LOW

Pleasing Product: If The long term consumer welfare is LOW & Immediate satisfaction is HIGH

This is all about various ways to understand classification and types of New Products.