This document outlines the new product development process. It discusses:
1. The different types of new products including those new to the world, new product lines, additions to existing lines, and improvements/revisions.
2. The 8 main steps in new product development: idea generation, idea screening, concept development and testing, marketing strategy development, business analysis, product development, market testing, and commercialization.
3. Within idea generation, it discusses techniques for generating ideas internally and externally, and the "4 U's" framework for evaluating ideas.
INTRODUCTION
In order to stay successful in the face of maturing products, companies need a continuous stream of new ideas successfully developed into new products. The way to obtain new products is to have a structured and carefully executed new product development process (NPD).
But companies face a problem: Although they must develop new products, the odds weigh heavily against success. Among thousands of products entering the process at the top, only a handful eventually reach the market. Therefore, it is of crucial importance to understand consumers, markets, and competitors in order to develop new products that deliver superior value to customers.
In other words, there is no way around a systematic, customer-driven new product development process for finding and growing new products. We will go into the eight major steps in the new product development process.
INTRODUCTION
In order to stay successful in the face of maturing products, companies need a continuous stream of new ideas successfully developed into new products. The way to obtain new products is to have a structured and carefully executed new product development process (NPD).
But companies face a problem: Although they must develop new products, the odds weigh heavily against success. Among thousands of products entering the process at the top, only a handful eventually reach the market. Therefore, it is of crucial importance to understand consumers, markets, and competitors in order to develop new products that deliver superior value to customers.
In other words, there is no way around a systematic, customer-driven new product development process for finding and growing new products. We will go into the eight major steps in the new product development process.
new product development (NPD) is the complete process of bringing a new product to market. A product is a set of benefits offered for exchange and can be tangible (that is, something physical you can touch) or intangible (like a service, experience, or belief).
The New Product Development ProcessBecause introdu.docxcherry686017
The New Product Development Process
Because introducing new products on a consistent basis is important to the future success of many organizations, marketers in charge of product decisions often follow set procedures for bringing products to market. In the scientific area that may mean the establishment of ongoing laboratory research programs for discovering new products (e.g., medicines) while less scientific companies may pull together resources for product development on a less structured timetable.
In this PowerPoint slide show, we present a process comprising the key elements of new product development. While some companies may not follow a deliberate step-by-step approach, the steps are useful in showing the information input and decision making that must be done in order to successfully develop new products. The process also shows the importance market research plays in developing products. We should note that while this process works for most industries, it is less effective in developing radically new products. The main reason lies in the inability of the target market to provide sufficient feedback on advanced product concepts since they often find it difficult to understand radically different ideas. So while many of these steps are used to research breakthrough ideas, the marketer should exercise caution when interpreting the results.
*
New Products are vital
As the cartoon highlights, in this era of rapid changes in our external environment, innovation is imperative. A firm cannot rest on their laurels (and current products). Furthermore, the time it takes firms to bring new products to market has accelerated. Firms that fail to develop new products put themselves at risk as their existing products are vulnerable to changing customer needs and tastes, new technologies, shortened product-life-cycles, and increased competition. In this PowerPoint slideshow, we highlight the 8 step new product development process as described by Kotler and Keller (2016).
*
8 Step New-Product Development Process1. Idea Generation2. Idea Screening3. Concept Development and Testing4. Marketing Strategy Development5. Business Analysis6. Product Development7. Market Testing8. Commercialization
How Kotler and Keller (2016) describes the New Product Development Process is as an eight stage process in which the new product can be dropped at any time. Other sources will condense some of the steps so you may see others refer to fewer steps. If you look at these closely though, they are not deleting any of the activities, but instead are combining some of them.
*
Step 1: Idea GenerationAt this stage marketers need to ask: Is the idea worth considering?If yes, proceed to idea screening.If no, drop.Ideas for new products can come from:Customers and channel membersScientists and engineersBy examining competitorsTop management
The first step of new product development requires gathering ideas to be evaluated as potential product ...
New product development, types of new product, new product line, product line extensions, improvements and revision to existing products, re-positioning, cost reductions.
new product development (NPD) is the complete process of bringing a new product to market. A product is a set of benefits offered for exchange and can be tangible (that is, something physical you can touch) or intangible (like a service, experience, or belief).
The New Product Development ProcessBecause introdu.docxcherry686017
The New Product Development Process
Because introducing new products on a consistent basis is important to the future success of many organizations, marketers in charge of product decisions often follow set procedures for bringing products to market. In the scientific area that may mean the establishment of ongoing laboratory research programs for discovering new products (e.g., medicines) while less scientific companies may pull together resources for product development on a less structured timetable.
In this PowerPoint slide show, we present a process comprising the key elements of new product development. While some companies may not follow a deliberate step-by-step approach, the steps are useful in showing the information input and decision making that must be done in order to successfully develop new products. The process also shows the importance market research plays in developing products. We should note that while this process works for most industries, it is less effective in developing radically new products. The main reason lies in the inability of the target market to provide sufficient feedback on advanced product concepts since they often find it difficult to understand radically different ideas. So while many of these steps are used to research breakthrough ideas, the marketer should exercise caution when interpreting the results.
*
New Products are vital
As the cartoon highlights, in this era of rapid changes in our external environment, innovation is imperative. A firm cannot rest on their laurels (and current products). Furthermore, the time it takes firms to bring new products to market has accelerated. Firms that fail to develop new products put themselves at risk as their existing products are vulnerable to changing customer needs and tastes, new technologies, shortened product-life-cycles, and increased competition. In this PowerPoint slideshow, we highlight the 8 step new product development process as described by Kotler and Keller (2016).
*
8 Step New-Product Development Process1. Idea Generation2. Idea Screening3. Concept Development and Testing4. Marketing Strategy Development5. Business Analysis6. Product Development7. Market Testing8. Commercialization
How Kotler and Keller (2016) describes the New Product Development Process is as an eight stage process in which the new product can be dropped at any time. Other sources will condense some of the steps so you may see others refer to fewer steps. If you look at these closely though, they are not deleting any of the activities, but instead are combining some of them.
*
Step 1: Idea GenerationAt this stage marketers need to ask: Is the idea worth considering?If yes, proceed to idea screening.If no, drop.Ideas for new products can come from:Customers and channel membersScientists and engineersBy examining competitorsTop management
The first step of new product development requires gathering ideas to be evaluated as potential product ...
New product development, types of new product, new product line, product line extensions, improvements and revision to existing products, re-positioning, cost reductions.
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3. New Product
A product is anything that can be offered to
a market to satisfy needs and wants.
A New product is any product which is
perceived by the customer as being new.
New product Categories…….
1:New to the world.
2:New to the product lines.
3:Additions to the existing product line.
4:Improvements & revisions of existing
products.
5:Repositioning.
4. New Product
development
Process
New Product
Development is the
development of
original products,
product
improvements,
product modifications,
and new brands
through the firm’s
own R & D efforts
Steps in New Product
Development
5. 1. Idea generation
Idea generation is continuous,
systematic search for new product
opportunities.
Ideas form using creativity
generating techniques and
generated through firm’s Internal
Sources & external Sources
7. 4 U’s
• Unworkable: Figure out whether the brainstormed product concepts will address some real
problems. Will the product be able to fill the existing customer experience gaps and will the
product achieve product-market fit?
• Unavoidable: Is the problem the product will address unavoidable to the extent that it
becomes mandatory to comply? It is necessary to find out whether solving that problem is a
choice or a compulsion.
• Urgent: Is the problem urgent and is a solution highly demanded by the target market? If the
answer is affirmative, this could be a chance to cover the white space in the market with the
original product.
• Underserved: Are there no available products that address the existing user problems? Look
for the whitespace in the market and hold on to the idea that looks promising.
8. 2. Idea Screening
Filtering the ideas to pick out
good ones & dropping the poor
ones.
It involves a preliminary
elimination process in which a
large number of product ideas are
screened in terms of the
organization’s objectives, policies,
technical feasibility, and financial
viability
9. 3. Concept Development & Testing
Here, the Product Idea is
converted into product concept.
Product Ideas means Possible
product that company may offer
to the market.
When developing product concept
following criteria should be
consider, Who will use the
product, What primary benefit
should this product provide, When
will this product be consumed.
10. 4. Marketing Strategy Development
After concept testing, for concepts
that qualify a preliminary
marketing strategy is created to
introduce new product into
market.
11. 5. Business analysis
This stage will decide whether
from financial as well as marketing
point of view, the project is
beneficial or not. In Business
Analysis ,
Estimate likely selling price based
upon competition and customer
feedback.
Estimate sales volume based upon
size of market.
Estimate profitability and break-
even point.
12. 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 into a technically and
commercially feasible product.
Produce a physical prototype
Test the product Conduct focus
group customer Make
adjustment
13. 7. Market Testing
Now the product is ready to be
branded with a name, logo, and
packaging and go into a
preliminary market testing.
Marketing Testing involves placing
a product for sale in one or more
selected areas and observing its
actual performance under the
proposed marketing plan.
14. 8. Commercialization
After successful market testing,
new product comes to
commercialization stage.
During this stage, production of
new product on a commercial
basis is rapidly built up and
implementing a total marketing
plan.
