2. • NEW PRODUCT DEVELOPMENT IS A PROCESS WHICH IS DESIGNED TO DEVELOP,
TEST AND CONSIDER THE VIABILITY OF PRODUCTS WHICH ARE NEW TO THE
MARKET IN ORDER TO ENSURE THE GROWTH OR SURVIVAL OF THE
ORGANIZATION.
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3. • IDEA GENERATION
• IDEA SCREENING
• CONCEPT DEVELOPMENT AND TESTING
• MARKETING STRATEGY
• BUSINESS ANALYSIS
• PRODUCT DEVELOPMENT
• TEST MARKETING
• COMMERCIALIZATION 3
4. IDEA GENERATION
• IDEA GENERATION IS CONTINUOUS, SYSTEMATIC SEARCH FOR NEW PRODUCT
OPPORTUNITIES.
• SOURCES OF NEW PRODUCT IDEAS
INTERNAL SOURCES
EXTERNAL SOURCES
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5. IDEA SCREENING
• IDENTIFYING GOOD IDEAS AND DROP POOR IDEAS
• MANY COMPANIES HAVE SYSTEMS FOR RATING AND SCREENING IDEAS WHICH
ESTIMATE:
MARKET SIZE
PRODUCT PRICE
DEVELOPMENT TIME AND COSTS
MANUFACTURING COSTS AND RATE OF RETURN
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6. CONCEPT DEVELOPMENT AND TESTING
• THIS CONSISTS OF DEVELOPING IDEA INTO ALTERNATIVE PRODUCT CONCEPTS,
TEST THE PRODUCT CONCEPTS WITH GROUPS OF TARGET CUSTOMERS AND
CHOOSE THE BEST ONE.
• CONCEPTS
PRODUCT IDEA
PRODUCT CONCEPT
PRODUCT IMAGE
CONCEPT TESTING
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7. MARKET STRATEGY DEVELOPMENT
• INCLUDES DEVELOPMENT OF THREE
PART STRATEGY PLAN:
PART ONE DESCRIBES OVERALL
PART TWO DESCRIBES SHORT-TERM
PART THREE DESCRIBES LONG-
TERM
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8. BUSINESS AND FINANCIAL ANALYSIS
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• REVIEW OF PRODUCT SALES, COSTS,
AND PROFITS PROJECTIONS TO SEE IF
THEY MEET COMPANY OBJECTIVES.
9. TEST MARKETING
• TEST MARKETING INVOLVES PLACING A PRODUCT FOR SALE IN ONE OR MORE
SELECTED AREAS AND OBSERVING ITS ACTUAL PERFORMANCE UNDER THE
PROPOSED MARKETING PLAN.
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10. COMMERCIALIZATION
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• COMMERCIALIZATION IS THE INTRODUCTION OF THE
NEW PRODUCT INTO THE MARKET
• INCLUDING
LAUNCH THE PRODUCT
PRODUCE AND PLACE ADVERTISEMENTS AND
OTHER PROMOTIONS
