Stages Process Steps of New Product Development
The stages or procedure or steps involved inwards a new-product development are depicted inwards the icon given below. Click on it to larn a zoomed preview.
Image credits © Moon Rodriguez.
The viii stages or procedure or steps involved inwards the evolution of a novel production are listed as well as besides hyper-linked every bit follows:
- Idea generation.
- Idea screening.
- Concept testing.
- Business analysis.
- Product development.
- Test marketing.
- Commercialization.
- Review of marketplace performance.
Now let's hash out each phase inwards the procedure of a new-product development.
1. Idea generation
The offset footstep inwards new-product evolution is thought generation.
New ideas tin sack endure generated by:
- Conducting marketing inquiry to honour out the consumers' needs as well as wants.
- Inviting suggestions from consumers.
- Inviting suggestions from employees.
- Brainstorming suggestions for new-product ideas.
- Searching inwards unlike markets viz., national as well as international markets for new-product ideas.
- Getting feedback from agents or dealers nigh services offered past times competitors.
- Studying the novel products of the competitors.
2. Idea screening
Most companies get got a "Idea Committee." This commission studies all the ideas real carefully. They conduct the expert ideas as well as decline the bad ideas.
Before selecting or rejecting an idea, the next questions are considered or asked:
- Is it necessary to innovate a novel product?
- Can the existing constitute as well as mechanism attain the novel product?
- Can the existing marketing network sell the novel product?
- When tin sack the novel production intermission even?
If the answers to these questions are positive, as well as then the thought of a new-product evolution is selected else it is rejected. This footstep is necessary to avoid production failure.
3. Concept testing
Concept testing is done later thought screening. It is unlike from exam marketing.
In this phase of concept testing, the fellowship finds out:
- Whether the consumers sympathize the production thought or not?
- Whether the consumers demand the novel production or not?
- Whether the consumers volition bring the production or not?
Here, a minor grouping of consumers is selected. They are given total data nigh the novel product. Then they are asked what they experience nigh the novel product. They are asked whether they similar the novel production or not. So, concept testing is done to honour out the consumers' reactions towards the novel product. If most of the consumers similar the product, as well as then business analysis is done.
4. Business analysis
Business analysis is a real of import footstep inwards new-product development. Here, a detailed draw of piece of occupation organization analysis is done. The fellowship finds out whether the novel production is commercially profitable or not.
Under draw of piece of occupation organization analysis, the fellowship finds out...
- Whether the novel production is commercially profitable or not?
- What volition endure the terms of the novel product?
- Is at that spot whatever demand for the novel product?
- Whether this demand is regular or seasonal?
- Are at that spot whatever competitors of the novel product?
- How the total sales of the novel production be?
- What volition endure the expenses on advertising, sales promotion, etc.?
- How much turn a profit the novel production volition earn?
So, the fellowship studies the novel production from the draw of piece of occupation organization signal of view. If the novel production is profitable, it volition endure accepted else it volition endure rejected.
5. Product development
At this stage, the fellowship has decided to innovate the novel production inwards the market. It volition bring all necessary steps to attain as well as distribute the novel product. The production division volition brand plans to attain the product. The marketing division volition brand plans to distribute the product. The finance division volition supply the finance for introducing the novel product. The advertising division volition innovation the advertisements for the novel product. However, all this is done every bit a minor scale for Test Marketing.
6. Test marketing
Test marketing way to innovate the novel production on a real minor scale inwards a real minor market. If the novel production is successful inwards this market, as well as then it is introduced on a large scale. However, if the production fails inwards the exam market, as well as then the fellowship finds out the reasons for its failure. It makes necessary changes inwards the novel production as well as introduces it i time again inwards a minor market. If the novel production fails i time again the fellowship volition decline it.
Test marketing reduces the conduct chances of large-scale marketing. It is a security device. It is real time-consuming. It must endure done specially for costly products.
7. Commercialization
If the exam marketing is successful, as well as then the fellowship introduces the novel production on a large scale, tell all over the country. The fellowship makes a large investment inwards the novel product. It produces as well as distributes the novel production on a huge scale. It advertises the novel production on the volume media similar TV, Radio, Newspapers as well as Magazines, etc.
8. Review of marketplace performance
The fellowship must review the marketing surgical operation of the novel product.
It must reply the next questions:
- Is the novel production accepted past times the consumers?
- Are the demand, sales as well as profits high?
- Are the consumers satisfied amongst the after-sales-service?
- Are the middlemen happy amongst their commission?
- Are the marketing staffs happy amongst their income from the novel product?
- Is the Marketing director changing the marketing mix according to the changes inwards the environment?
- Are the competitors introducing a similar novel production inwards the market?
The fellowship must continuously monitor the surgical operation of the novel product. They must brand necessary changes inwards their marketing plans as well as strategies else the production volition fail.
