We will discuss 8 steps of the New Product Development Process.
Product is anything offered to buyers that gives satisfaction to customers.
8 steps of the New Product Development Process.
Following is the process of the New Product Development process.
1. Idea generation
New product development starts with an idea. New product ideas come from a variety of sources. Such as customers, scientists, competitors, employees, channel members, investors, marketing consultants, universities, business journals, seminars, etc. Hence, various techniques have been developed and used for idea generation. Such as attribute listing, forced relationship, morphological analysis, need/problem identification, brainstorming, etc.
2. Idea Screening
It is the process of eliminating unfeasible ideas. Hence, the purpose of screening is to drop ideas as early as possible. The total generated ideas are categorized into three groups. Such as
i. Promising ideas – carried on for further testing.
ii. Marginal ideas- stored for future use
iii. Rejected ideas – dropped altogether
3. Concept development and testing
Concept development and testing is the method of trying to measure buyer interest before the actual product has been developed. Moreover, it is asking potential customers to evaluate the description of a product concept. Hence, Feasible product concepts are selected for the next stage of marketing strategy and business analysis.
4. Marketing strategy development
5. Business Analysis
This stage is essential in the total process of new product development because several vital decisions regarding the project are expanded into business proposals. Hence, it is done to evaluate the product concept’s business attractiveness. Therefore, if the product concept passes the marketing strategy and business analysis test, it moves to the next stage of product development.
6. Product Development and testing
After completion of the business analysis. It moves to R & D to develop the physical product. So, in this step, an idea from the paper is converted into a physical product. Hence, product testing is conducted through an expert panel, central location testing, and in-home tests.
7. Market Testing
After management is satisfied with the functional and psychological performance. Hence, the product is ready to be dressed up with a brand name, and packaging, and put to market testing. The goal is to test the product in consumer settings.
Full-scale production and marketing programs and planned and the product is launched in the target market. Up to this point in the development process, management has generally complete control over the product. Generally, one out of thirty new product ideas gets to the commercialization stage.
Hence, these are 8 steps of the New Product Development Process.
Other Important Links
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