Transcript new_product_development_process

The New Product Development
Process
New Products are vital
8 Step New-Product Development
Process
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Idea Generation
Idea Screening
Concept Development and Testing
Marketing Strategy Development
Business Analysis
Product Development
Market Testing
Commercialization
Step 1: Idea Generation
• At 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 members
– Scientists and engineers
– By examining competitors
– Top management
Step 2: Idea Screening
• At this stage marketers need to ask:
– Is the product idea compatible with company
objectives, strategies, and resources?
• If yes, proceed to Concept Development and Testing.
• If no, drop.
Step 3: Concept Development and
Testing
• At this stage marketers need to ask:
– Can we find a good concept consumers say they
would try it?
• If yes, proceed to Marketing Strategy Development.
• If no, drop.
• Example of Concept Development/Testing
– Regarding a concept of new shower enclosures
coated with Teflon, a marketer asks consumers:
• Would this type of shower enclosure solve a cleaning
problem for you?
Step 4: Marketing Strategy
Development
• At this stage marketers need to ask:
– Can we find a cost-effective, affordable marketing
strategy?
• If yes, proceed to Business Analysis.
• If no, drop.
Step 5: Business Analysis
• At this stage marketers need to ask:
– Will this product meet our profit goal?
• If yes, proceed to Product Development.
• If no, drop
Step 6: Product Development
• At this stage marketers need to ask:
– Have we got a technically and commercially sound
product?
• If yes, proceed to Market Testing.
• If no, drop.
• Example of Product Development Stage
– A new-product development department is excited about
a new product idea for a suntan lotion that goes on blue,
but fades away as the ability of the lotion to protect skin
disappears.
– Projected sales, growth, and profit looks promising.
– The idea has been passed to R&D to determine if the
product could be feasibly made.
Step 7: Market Testing
• At this stage marketers need to ask:
– Have product sales met expectations?
• If yes, proceed to Commercialization
• If no, send the idea back for product development.
• Examples of Consumer-Goods Market Testing
– Sales-Wave Research
• Consumers initially try the product at no cost then are
reoffered the product, or a competitors’ product at a slightly
reduced price.
– Simulated Test Marketing – lab store
– Controlled Test Marketing
• Panel of stores carry new product for a fee.
Step 8: Commercialization
• At this stage marketers need to ask:
– Are product sales meeting expectations?
• If yes, make future plans.
• If no, modify the product or marketing program or
drop.
• This is the most expensive step of the new
product development process.
Sources
• Knowthis.com (2011). New Product Development
Process. Retrieved May 19, 2011, from
http://www.knowthis.com/principles-of-marketingtutorials/managing-products/new-productdevelopment-process/.
• Kotler, P. and Keller, K.L. (2016). Marketing
Management (15th ed.). Upper Saddle River, NJ:
Pearson Prentice Hall.
• Richardson, P. (2011, February, 16). Dilbert New
Product. Retrieved May 19, 2011 from
http://www.witiger.com/marketing/dilbertnewproduct
SM.jpg.