1. By :
Madhu Singh
II Tri. P.G.D.M. , F.I.M.S.

2. Major Steps in New Product Development
Idea Generation
Idea Screening
Concept development & testing
Marketing strategy development
Business analysis
Product development
Test Marketing
Commercialization

3. 1. Idea genration :
Major sources of new product idea
includes :
* External sources
• Costomers
• Competitors
• Distributors
• Suppliers
* Internal sources
• R&D

4. 2. Idea Screening
• Spot good ideas & drop poor ones
as soon as possible.
• Purpose is to create a large
number of ideas.

5. 3. Concept Development & Testing :
* Product concept :
• Product idea
• Product concept
• Product image
* Concept testing :
• Symbolically
• Physically

6. 4. Marketing Strategy development :
The marketing strategy consist of 3
parts:
• Target market, planned product
positioning & sales.
• Product’s price, distribution &
marketing budget.
• Planned long run sales, profit
goals & marketing mix strategy.

7. 5. Business Analysis:
Finding out the satisfaction of companies
objectives :
• It is evaluation of business
attractiveness of the proposal.
• Use of sales & costs figures to
analyse the product’s financial
attractiveness.

8. 6. Product Development :
• The R&D department will develop &
test the product concept (prototype).
• The prototype must have the required
functional features & also convey the
intended psychological characteristics.

9. 7. Test Marketing:
• The product & marketing program are
tested in more realistic marketing
settings.
• It gives the marketer experience with
marketing.

10. • When using it, companies usually
choose 1 of 3 approaches :
• Standard test marketing
• Controlled test marketing
• Simulated test marketing

11. 8. Commercialisation :
Introduction of the new product :
• Commitment of high investments.
• Decide introduction timing.
• Decide where to launch.