Marketing Management New product offering - steps of new product developments

1. NEW PRODUCT OFFERING
NEW PRODUCT OFFERING

2. INTRODUCTION
 New-product development is the
development of original products, product
improvements, product modifications, and
new brands through the firm’s own R & D
efforts.

4. CONT..
 Idea GenerationIdea Generation
 The systematic search of new-product ideas.
 There are two types of generating the idea
internal source and external source
 Appoint a respected senior person to be the
company's idea manager.
 Create a multidisciplinary idea management
committee consisting of people from R&D,
engineering, purchasing, operations, finance, and
sales and marketing to meet regularly and
evaluate proposed new-product and service ideas.

5. CONT..
 Set up a toll-free number for anyone who wants
to send a new idea to the idea manager.
 Encourage all company stakeholders—
employees, suppliers, distributors, dealers— to
send their ideas to the idea manager.
 Set up formal recognition programs to reward
those who contribute the best new ideas.

6. CONT..
 Idea ScreeningIdea Screening
 Screening new-product ideas in order to spot
good ideas and drop poor one as soon as
possible.
 Concept Development & TestingConcept Development & Testing
 A detailed version of the new-product stated in
meaningful consumers terms.
 Testing new-product Concept to find out if the
concepts have strong consumer appeal.

7. CONT..
 Marketing strategy developmentMarketing strategy development
 Designing an initial marketing strategy for a new
product based on the product concept.
 Normally marketing strategy, consists of three
parts
 The Target Market
 Product’s price, distribution, & marketing budget
 Sales, Profit and marketing mix

8. CONT..
 BusinessBusiness analysis
 A review of the sales, costs & profit projections
for a new product to find out whether these
factors satisfy the company’s object.
 Product developmentProduct development
 Developing the product concept into physical
product in order to assure that the product can
be turned a workable product.

9. CONT..
 Testing marketingTesting marketing
 The stage of new-product development in which
the product and marketing program are tested in
more realistic market setting.
 There are two types of marketing test
 Standard Test Markets
 Controlled Test Markets
 Simulated Test Markets

10. CONT..
 CommercializationCommercialization
 Introducing product in marketIntroducing product in market