Stages Process Steps of New Product Development
The stages or procedure or steps involved inwards a new-blogspot.com//search?q=what-is-product-development-meaning">product development are depicted inwards the icon given below. Click on it to instruct a zoomed preview.
Image credits © Moon Rodriguez.
The viii stages or procedure or steps involved inwards the evolution of a novel production are listed together with likewise hyper-linked every bit follows:
- Idea generation.
- Idea screening.
- Concept testing.
- Business analysis.
- Product development.
- Test marketing.
- Commercialization.
- Review of marketplace position performance.
Now let's speak over 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 endure generated by:
- Conducting marketing inquiry to detect out the consumers' needs together with wants.
- Inviting suggestions from consumers.
- Inviting suggestions from employees.
- Brainstorming suggestions for new-product ideas.
- Searching inwards dissimilar markets viz., national together with international markets for new-product ideas.
- Getting feedback from agents or dealers most 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 really carefully. They conduct the skilful ideas together with refuse 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 together with mechanism create the novel product?
- Can the existing marketing network sell the novel product?
- When tin the novel production interruption even?
If the answers to these questions are positive, together with 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 dissimilar from exam marketing.
In this phase of concept testing, the fellowship finds out:
- Whether the consumers sympathise the production thought or not?
- Whether the consumers demand the novel production or not?
- Whether the consumers volition convey the production or not?
Here, a pocket-size grouping of consumers is selected. They are given total data most the novel product. Then they are asked what they experience most the novel product. They are asked whether they similar the novel production or not. So, concept testing is done to detect out the consumers' reactions towards the novel product. If most of the consumers similar the product, together with then blogspot.com//search?q=what-is-product-development-meaning">business analysis is done.
4. Business analysis
Business analysis is a really of import footstep inwards new-product development. Here, a detailed employment organisation analysis is done. The fellowship finds out whether the novel production is commercially profitable or not.
Under employment organisation analysis, the fellowship finds out...
- Whether the novel production is commercially profitable or not?
- What volition endure the damage of the novel product?
- Is at that topographic point whatever demand for the novel product?
- Whether this demand is regular or seasonal?
- Are at that topographic point 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 employment organisation betoken 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 convey all necessary steps to create together with distribute the novel product. The production division volition brand plans to create the product. The marketing division volition brand plans to distribute the product. The finance division volition render the finance for introducing the novel product. The advertising division volition excogitation the advertisements for the novel product. However, all this is done every bit a pocket-size scale for Test Marketing.
6. Test marketing
Test marketing agency to innovate the novel production on a really pocket-size scale inwards a really pocket-size market. If the novel production is successful inwards this market, together with then it is introduced on a large scale. However, if the production fails inwards the exam market, together with then the fellowship finds out the reasons for its failure. It makes necessary changes inwards the novel production together with introduces it i time again inwards a pocket-size market. If the novel production fails i time again the fellowship volition refuse it.
Test marketing reduces the adventure of large-scale marketing. It is a security device. It is really time-consuming. It must endure done peculiarly for costly products.
7. Commercialization
If the exam marketing is successful, together with then the fellowship introduces the novel production on a large scale, state all over the country. The fellowship makes a large investment inwards the novel product. It produces together with distributes the novel production on a huge scale. It advertises the novel production on the volume media similar TV, Radio, Newspapers together with Magazines, etc.
8. Review of marketplace position performance
The fellowship must review the marketing functioning of the novel product.
It must reply the next questions:
- Is the novel production accepted past times the consumers?
- Are the demand, sales together with 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 managing 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 functioning of the novel product. They must brand necessary changes inwards their marketing plans together with strategies else the production volition fail.
