New products are needed to replace old products because of declining sales and profits. Strategies for developing and positioning new market entries involve all functions of the business. Closely coordinated new-product planning is essential to satisfy customer requirements and produce products with high quality at competitive prices. New-product decisions include finding and evaluating ideas, selecting the most promising for development, designing marketing programs, market testing the products, and introducing them to the market.

Listening to the customer is critical to identifying the important product features that influence customer satisfaction. The new-product planning process starts by identifying gaps in customer satisfaction. The differences between existing product attributes and those desired by customers offer opportunities for new and improved products. One of the leader’s in’ product innovation is Minnesota Mining and Manufacturing (3M). It has a reputation of developing products faster and better than, most companies.24 The new-product success guidelines 3M follows include: (1) keeping bushiness units small, (2) encouraging experimentation and risk taking, (3) motivating and rewarding, innovators, (4) staying close to the customer,, (5) sharing technology with other firms, and (6) avoiding killing the projects of staff advocates