NEW PRODUCT DEVELOPMENT

New Product Development

New Product Development

Introduction

New product development refers to the complete process of the development of new products in order to introduce them in the market. A product that is offered to the customers is to provide them with benefits; however, it can be tangible or intangible. The two main areas that are considered during new product development include generation of the idea, product design and the details of the product. Besides this, the others include market research and marketing analysis. New product development is considered by the companies as the first stage that enables them to generate products which are new. However, the reason why new products are introduced by the companies is because they need to maintain as well as to grow the overall market share because of which the product life cycle needs to be studied (Scott, 2010, pp. 34-89).

Discussion

Question 1: New Product Development Process

Compare and contrast three different models of the “Product Development Process” (PDP) and explain why different models exist.

Many authors and even most introductory textbooks present marketing product development models that incorporate the various stages or phases. The need for establishing a process for developing new products from the organizations is crucial for several reasons. In First we note that the company must offer consistently new products to market with tastes and preferences changing and constantly evolving, therefore, there is a need to be aware of the need for development of company's offer. The process of creating new products is carried out simultaneously to many new ideas, especially considering that high mortality are the same throughout the process, so if many of new ideas are not going to get new products to develop as a system for continuous generation of ideas is established. On the other hand it must take into account the increasing costs of developing new products, the various stages of development as required is advanced with the same use more resources therefore be taken into account the product development process must be designed so as to allow identify non-viable or high probability of failure in phases said initial process phases which has not yet produced an intensive resource (Peter, 2011, pp78-90). The formalization of the process of developing new products is necessary for the success of new ideas is also strongly related to attitudes and involvement of top management, this will avoid situations of lack of interest in general management, lack of allocation resources for new product, or even contrary situations of excess interest and involvement in both cases (one default and another up) than it can lead to bad decisions. The product development process that is proposed is shown in figure below.

Steps in Developing New Product

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 ...