This power point presentation contain brief explanation of new product development process and product life cycle management.

1. New Product
Development

2. Ideology behind (NDP)
In order to stay successful in the face of
maturing products.
But they face a problem. Out of
thousands of products entering the
process, only a handful reach the market.
Crucial importance to understand
consumers, markets, and competitors
To develop products that deliver superior
value to customers.

3. Steps in New Product Development

4. Step 1-Idea generation
Idea generation refers to the systematic
search for new-product ideas. Typically,
a company generates hundreds of ideas
to find a handful of good ones in the
end.
Two sources of new ideas can be
identified
• Internal idea sources
• External idea sources

5. Step 2- Idea screening
Idea screening means nothing else than
filtering the ideas to pick out good ones.
In other words, all ideas generated are
screened to spot good ones and drop
poor ones as soon as possible.
Need of this step
• Dropping the poor ideas as soon as
possible is, consequently, of crucial
importance.
• The reason is that product development
costs rise greatly in later stages.

6. Step 3- Concept development & Testing
Concept development
A product concept is a detailed
version of the new product idea
stated in meaningful consumer
terms.

7. Testing
• There is always a need to test with groups
of target consumers.
• The concepts can be presented to
consumers either symbolically or physically.
• To increase the reliability of the test, a
more concrete and physical presentation of
the product concept may be needed.
• Target customers will be giving feedback
to find out the consumer appeal and
customer value of each concept.

8. Step 4- Marketing Strategy Development
The next step is marketing strategy
development which is designing an
initial marketing strategy for a new
product based on the product concept.
The marketing strategy statement consists of
Target market,
planned product
positions, sales,
market share,
and profit goals.
Product’s
planned price,
distribution, and
marketing
budget.
Long-run sales
and profit
goals,
marketing mix
strategy.

9. Step 5-Business analysis
• Involves a review of the sales, costs and
profit projections to satisfy the company’s
objectives.
• Looking at the sales history of similar
products and conduct market surveys of
the company.
• Estimates minimum and maximum sales
to assess the range of risk.
• All the figures together can eventually be
used to analyse the new product’s
financial attractiveness.

10. Step 6- Product development
• The new product development process
goes on with the actual product
development.
• If concept passes test, it must be developed
into a physical product .
• Also, products often undergo tests to make
sure they perform safely and effectively.
• marketers involve actual customers in
product testing.

11. Step 7- Test marketing
• Testing takes place in realistic market
settings.
• Gives the marketer experience with
marketing.
• The amount of test marketing varies
with each new product.
• Introducing a new product requires a
large investment.

12. Step 8- Commercialisation
• The final stage in the new product
development process is
commercialisation.
• Its all about introducing a new product
into the market.
• At this point, the highest costs are
incurred: the company may need to
build or rent a manufacturing facility.

13. Factors to be considered before the
product is commercialized:
1. Must decide on timing (i.e., when to
introduce the product).
2. Must decide on where to introduce the
product (e.g., single location, state,
region, nationally, internationally).
3. Must develop a market rollout plan.

14. Things to keep in mind (NPD)
1. Identifying Your Customers
2. Effective Product Management
3. Product Architecture
4. Separating Outcomes from the Product

15. REASONS FOR NEWPRODUCT FAILURES.
1. Overestimation of market size
2. Design problems
3. Incorrectly positioned, priced,
or advertised
4. Pushed despite poor
marketing research findings
5. Development costs

16. Product lifecycle management
• It is an information management
system.
• Integrate data, processes, business
systems and, ultimately, people in an
extended enterprise.
• Allows to manage this information with
product efficiency and cost-
effectiveness.

17. How PLMis useful
1. Greater visibility to all critical
information.
2. Improved supplier collaboration.
3. Improve standard compliance .
4. Improve product quality.
5. Faster response to dynamic market.
6. Greater component reuse.

19. What we conclude…
New product development (NPD) is the
process of bringing a new product to
the market place. Many concepts get
generated but only the efficient one is
filtered out . That design or concept are
displayed to customers for their
feedback. After passing all these stages
the production process starts according
to demand generated . After that the
product life cycle management system
helps to keep a track on the production
and supply chain to cope up with exiting
products and to create new one.