Abstract
Most Companies recognise that a continuing stream of new product developments is essential to ensure long term organisational health, but they also recognise that innovation is accompanied by high cost and risks. These risks can be controlled through a well-conceived and professionally managed program of new product development. Presumably a new product is introduced by a company when a favourably estimate has been made of its future sales, profits and other impacts on the firm's objectives. New products sales are shaped by many factors, including the size of the potential market, the nature of competition, and the company's marketing plan and resources. The appropriate sales-forecasting model varies with the type of new product situation. These situations are distinguished by the degree of newness of the product re-purchasing.
