Product Development (1230 words)

The company that employs you is considering promoting you to their new product development team. In preparation for the interview that will proceed a possible formal promotion it has been suggested that you become familiar with some subjects germane to the work you will be pursuing.

Product differentiation
- cost leadership
- complexity of product
- timing of introduction
- product appearance

Explain each of the above and give example.

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Product development

Introduction
Product development is an important part of a production company because it involves the design and creation of what the company is going to offer to the market. Therefore as a product development manager, the expectation of the market is that what you will come up with, will meet their expectations satisfactorily. This position is therefore very important in the perception and survival of the company.

Product Differentiation
Product differentiation involves efforts taken to make products and services appear unique from the other products and services, especially those of competitors. Customers can distinguish products made by the same Firm to eliminate confusion on their identity. For example, a soft drinks company like Coca Cola can make their soda bottles unique in color and shape to differentiate with what Mecca cola is producing. Product differentiation was developed by Edward Chamberlin, who wanted to make products attractive to a particular target market (1)....