STAGES OF NEW product development

1. STAGES OF NEW PRODUCT
DEVELOPMENT
PRESENTED BY
Nandini H R
1st M.Com
Under the guidance of
Sundar B. N.
Asst. Prof. & Course Co-ordinator
GFGCW, PG Studies in Commerce
Holenarasipura

2. Contents
• INTRODUCTION
• STAGES OF NEW PRODUCT DEVELOPMENT
• CONCLUSION
• BIBLIOGRAPHY

3. INTRODUCTION
A product is anything that can be offered to a market to satisfy needs and wants.
A product is a set of tangible and intangible attribute which include packing
colour, price, quality, brand name and manufactures and retailers service all
these that buyer accept as a want satisfaction.
A new product is any product which is perceived by the customer as being new.

4. STAGES OF NEW PRODUCT DEVELOPMENT
New product development is the development of original products, product improvements product
modifications and new brand though the firm’s own R&D efforts. This process consists of following
steps.
Idea generation
Idea screening
Concept development and
Testing
Marketing strategy development
Business analysis
Product development
Test Marketing
Commercialisation

5. 1. IDEAGENERATION
• Idea Generation is continuous, systematic search for new product opportunities.
• Ideas form using creativity generating techniques and generated through firms internal
sources & External sources.
Internal
Employee
Research &
Development
External
Customers
Competitors
Suppliers
Distributors
Online opinion

6. 2. IDEA SCREENING
• Idea screening means nothing else than filtering the ideas to pick out good ones
• They select the good ideas and reject the bad ideas.
• Total ideas are categories in to three groups:-
1. They are promising ideas
2. Marginal ideas
3. Rejected ideas

7. 3. CONCEPT DEVELOPMENT & TESTING
• Here, the product idea is converted in to product concept
• Product ideas means possible product that company may to the market
• A product concept is a detailed version of the idea started in meaningful
consumer terms
• Concept testing is done after idea screening. It is different from test marketing.

8. 4.MARKETING STRATEGY DEVELOPMENT
After concept testing, for concepts that qualify a preliminary marketing strategy is
created to introduce new product in to market.
Understanding customer
Analyze the market
Analyze the competition
Research Distribution channels
Define marketing Mix
Analyze the Financials
Review and Revise

9. • Once decided upon a product concept and marketing strategy
• Business analysis is a very important step in new-product development. Here,
detailed business analysis is done. The company finds out whether the new
product is commercially profitable or not.
5. BUSINESS ANALYSIS

10. 6.PRODUCT DEVELOPMENT.
Up to now, the product has existed only as a word description, a drawing.
The company will now determine whether the product idea can translate in to a
technically and commercially feasible product.
Produce a
Physical
prototype
Test the
product
Conduct
focus group
customer
Make
adjustment

11. 7. TEST MARKETING
Now the product is ready to be branded with a name, logo and packing and go in
to preliminary market testing.
• Methods of test marketing:-
1. Sales wave research.
2. Simulated test marketing.
3. Controlled test marketing.
4. Test markets.

12. 8. COMMERCIALIZATION
• After successful market testing, new commercialisation stage.
• During this stage, production of new product on a commercial basis is rapidly built up
and implementing a total marketing plan.
• For formally launching a New product, the following decisions to be taken :
• When to launch ( Timing)
• Where to launch (Geographic strategy)
• To whom (Target-Market prospects)
• How to launch ( Introductory market strategy)

13. CONCLUSION
• Every year millions of rupees are being spent on research & development for
new products development. Such huge investment is necessary as new products
are the only means of survival of a firm.
• Product development process includes; idea generation, idea screening, concept
development and testing, marketing strategy development, business analysis,
product development, test marketing, commercialisation
• To produce goods & services with best quality
• It helps in providing maximum customer satisfaction.

14. BIBLIOGRAPHY
1. Introduction to Stages of New product development (Retrieved from, https://www.slideshre.net)Date:-
8/4/2021
2. Stages of new product development (Retrieved from, http://kalyan-city.blogspot.com).Date:-8/4/2021
3. Development process ( Retrieved from, http://marketing-insider.eu/new-product)date:: 8/4/2021