New Product Development Process
There are 8 Development process of New Product, which are Idea generation, Idea Screening, Concept development and testing, Marketing strategy, Business analysis, Product development, Test marketing and Commercialization.
Idea generation
• systematic search for new product ideas
• What are the main sources of new product ideas?
- internal sources
•employees, R & D
– customers
– competitors
– distributors (resellers) and suppliers
– secondary sources
•publications, market research firms, inventors etc
Idea screening
•spot good ideas and drop poor ideas
•screening criteria
– does it fit with our company objectives and mission?
– do we have the capability (resources and expertise)?
– can we distribute the product (channel overlap)?
3. Marketing strategy
•Who will be our target market?
•What is our planned positioning?
•Marketing mix – price, promotion, distribution?
•What are our sales, profits and market share goals?
•Marketing budget?
Business analysis
•A review of sales, costs and profit projections – forecasting and estimates.
•Do these meet our company objectives?
Product development
•developing the product concept into a physical product
•developing prototypes
•functional testing of prototypes
– does it do what it is supposed to do?
– level of performance
•durability, reliability
•product use testing
•patenting your new product
– Big ideas network
– Patenting your idea
Test marketing
•The product and the other elements of the marketing mix (price, promotion and distribution) are tested in a more realistic market setting
•What makes a good test market?
Commercialisation
•Introducing the product into the market
– the launch
•When?
•Where?
•To whom?
•How?
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