EDUCATION 101: New Product Development Process

Principles Of Marketing; Product development

New Product

 

NEW PRODUCT DEVELOPMENT PROCESS

A product can be defined as anything that can be offered to the market for attention, acquisition, rental, use or consumption to satisfy a need or a want.

  • Idea Generation: This is where all ideas concerning a product are generated. The ideas may be numerous because at any given time an organization can only develop one idea at a time given the scarcity of the resources.

  • Idea Screening: All ideas from stage one are evaluated realistically. The company’s aim is to identify the ideas that are worth development in the terms of their feasibility given the resources available within the organization.
  • Concept Development and Testing: Under this stage, the marketer will test the concept or the idea of the product he or she intends to develop on a specific market segment.
  • Market Analysis: This basically Involves factoring in the marketing mix that will be employed that is Price, Place, Product and Promotion. The marketer further considers the target market and possession the product should take in the market.
  • Business Analysis: Involves cost benefit analysis. If benefits are higher than the cost, the idea is expanded into a concrete product.
  • Product Development: Following the successful feasibility study, marketers must develop a full product concept that is the idea that’s on the paper must be converted into a physical product or developed into in to a concept that appeals to the customers.
  • Test Marketing: Here the idea is tested with the target market to see their behavior and attitudes towards the new product. The management must make the final decision on whether to launch or not to launch the product.
  • Commercialization/Launching: After the market has been tested, marketers must decide to go on full scale production to launch the product in the market.

 

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