New Product Development

Process
By

Matloob Hussain Mir

Kashif Iqbal
Aamir Iqbal
 There are eight stages in the process of
development of new product

1. Idea Generation 5. Business Analysis

2. Idea Screening 6. Product
3. Concept Development
Development 7. Market Testing
and testing 8. Commercialization
4. Market Strategy
Development
 Idea Generation

The new product development process starts with

the search for ideas. The search should not be
casual.
New products ideas come from many sources:
Customers, Scientists, Competitors, Employees,
Channel members and top management.
Customers needs and wants are the logical lace to
start in the search for new product ideas.
Companies also rely on their scientists, engineers
and other employees for new product ideas.
 Idea Screening

The purpose of screening is to drop poor

ideas as early as possible. The rationale is
that product development costs rise
substantially with each successive
development stage. When products reach
later stages, management feel that they have
invested so much in developing the product
that it should be launched to recoup some of
the investment.
 Concept Development and Testing

Attractive ideas must be refined into testable product

concepts. Customers do not buy product ideas,
they buy product concepts.
Concept testing calls for testing these competing
concepts with an appropriate group of target
customers. The consumers are presented with an
elaborated version of each concept and are asked
certain questions about the concept. The respondents
answer are summarized to judge whether the
concept has a broad and strong consumer appeal.
 Market Strategy Development

The new product manager must now develop

a marketing plan for introducing this
product into the market. The marketing
strategy plan consists of structure and
behavior of the target market, the planned
product positioning.
The products planned price, distribution
strategy, the long run sales and profit goals
and marketing mix strategy over time.
 Business Analysis

Now it can evaluate the business proposal’s

attractiveness. Management needs to
prepare the sales, cost and profit projections
to determine whether they satisfy the
company’s objectives.
 Product Development
If the product passes the business test, it
moves to R & D and /or engineering to be
developed into a physical product. The stage
will answer whether the product idea can be
translated into a technically and
commercially feasible product. The R & D
department will develop one or more
physical versions of the product concept.
 Market Testing
Now the product is ready to be dressed up
with a brand name, packaging and a
preliminary marketing programme to test it
in more authentic customer settings.
 Commercialization
Market testing presumably gives
management enough information to decide
about launching of the new product. In
commercializing a new product market
entry timing can be critical. The company
must decide whether to launch the new
product in a single locality, a region, several
regions, the national market or the
international market.
If you have any questions
please don’t ask…..

Thank You