NEW PRODUCT DEVELOPMENT

New Product Development



New Product Development

Section 1

Stages of New Product Development

New Product Development can be defined as the process of innovating and inventing new ideas and concepts, with a view to developing a successful new product in the anticipation of customer needs. The process of New Product Development involves various stages of inventing, testing, retesting, acquiring consumer attention and even redesigning, therefore making this process quite elaborate, costly and complicated depending on how the business wishes to make it (Drake & Swanson, 1995, pp: 366). However, despite this process being elaborate, costly and complicated, it is quite necessary to a firm. The stages of the development process of new products are:

Idea generation

Screening

Concept development and testing

Marketing strategy

Business Analysis

Product Development

Market test

Marketing

Idea Generation

The needs and desires of customers are the ideal place to start looking for ideas for new products. Businesses also rely on their scientists, engineers, designers and other employees to get ideas for new products. The companies can find ideas to examine the products and services, competition, competitive strategy is the improvement of product imitation rather than innovation itself (Egan et al, 1981, pp. 15). Techniques for the generation of the idea are attribute relationship, forced relationships, morphological analysis, identification of needs / problems and brainstorming.

Screening Of The Idea

To sift the ideas the company must avoid two types of errors. An error of exclusion occurs when the company disposed of a good idea in other circumstances, an error occurs later when the company that a poor idea pass the stages of development and commercialization.

Concept Development And Testing

The idea of ??a product is a possible product that the company owed may offer in the market. The concept of a product is an elaborated version of the idea expressed in terms understandable to the consumer (Elmer, 1978, pp. 239). The concept of development and testing Methodology is applicable to any product, service or idea.

Marketing Strategy

The plan of the marketing strategy is made up of three parts. The first describes the size, structure and behavior of target market, positioning for the product planning and sales, the market share and profits that are intended goal in the early years. The second part describes the price for the product planning, distribution strategy and marketing budget for the first year. The third part describes the long-term sales and profit target, as well as the strategy of the marketing mix over time.

Business Analysis

Management needs to make sales, cost and profit projections to determine whether or not they meet company goals. If you do, the product can pass the concept of product development stage. Upon receipt of new information business analysis will undergo further revisions. Management needs to figure out if sales are high enough to yield satisfactory profits.

Product Development

The department will develop one or more versions of the product, hoping to find a prototype that meets the following criteria. Product development is a broader concept than R & D, ...