NEW PRODUCT DEVELOPMENT PROCESS

NIKHIN JOSEPHII SEM MBA TTROLL NO: 13

NEW PRODUCT DEVELOPMENT PROCESS Every company should be good in

developing new products should also be an expert in changing

its features according to the market changes

1.IDEA GENERATION

Search of new ideas what the company wants from its new

product sources of idea are 1. internal sources – inside the company 2. customers – research 3. competitors – evaluation 4. distributors and suppliers 5. other sources -

2.IDEA SCREANING Important stage Purpose is to create large number of

ideas and screening it. ideas of new profitable product Make rough idea of market size, prize,

development time, cost and rate of return Questions like does it mesh with the

companies objectives and strategies, do we have people, resources, skills, and equipments etc??????

3.CONCEPT DEVELOPMENT AND TESTING Ideas are converted into product concepts Product is evaluated in the eyes of the

consumers eg. Major restaurants introducing new menu The concept is developed by many market

analysis Testing to target consumers, and takes

simple consumer attitude surveys and get into assumptions

Testing occurs according to the size of the firm

4.MARKETTING STRATEGY DEVELOPMENT Designing an initial marketing

statement which consist of 1. target market, product

positioning, sales, market share, and profit for the first year

2. products planned size, distribution, and marketing budget for the first year.

3. planned long run sales, profit goals and marketing mix strategies for long time

5.BUSSINESS ANALYSIS

Checks about the business attractiveness

It is a review of sales, costs, and profit projection to satisfy companies objectives

Also checks sales history of similar product and survey market opinion

after sale forecast they estimate the expected cost and profit

This analysis include the total marketing cost

6.PRODUCT DEVELOPMENT

product concept is converted into product

product depends on the market evaluation

product should also depend on the costumer need

can be a long or a short term process

7.TEST MARKETTING

Testing the product in any small demographical region Generally done when not sure of product or marketing

programme and huge investment helps marketers to gain experiences in marketing, find

potential problems, any alternation before mass production it evaluates the product and also the entire marketing

program in real life situation The product, its positioning strategy, advertising

distribution, prizing, branding, packaging, budgets are evaluated

Thus solving all problems and move into mass production

8. COMMERCILAZATION

Mass production of the tested product

requires huge investments requires answers for 1. when – right time to introduce 2. where – place of introduction 3. to whom – target its promotion

and distribution to the prospects

group 4. how – production budget

THANK YOU