An Introduction to…

MARKETING MANAGMENT
NEW PRODUCT DEVELOPMENT
PROCESS
 NEW PRODUCT DEVELOPMENT
STRATEGY
IDEA GENERATION
1. New Product Development starts with Idea generation.
2. It is the systematic process of searching for new product ideas.
3. Major sources of new product Ideas include:
 INTERNAL SOURCES
 EXTERNAL SOURCES
 NEW PRODUCT DEVELOPMENT
STRATEGY
IDEA GENERATION
INTERNAL SOURCES
The company can find ideas through formal R&D.
Beyond R&D, the firm can motivate employees for idea generation.
Many companies have started the Intrapreneurial program that encourage employees
to develop new product ideas.
Operates an innovation center at Silicon valley staffed with
Engineers, app developers & scientists working on driverless cars
& apps to control home appliances from the car.

Sponsor periodic “hackathons”, wherein employees take a week

off to develop new ideas.
 NEW PRODUCT DEVELOPMENT
STRATEGY LEGO

IDEA GENERATION
EXTERNAL SOURCES
Distributor & Suppliers can contribute Ideas.
1. They are close to the market & can pass on valuable customer feedback to the
company.
2. They can tell company about new concepts, techniques & materials used.
Competitors
1. Companies watch competitors ads to get clues about their new products
2. They buy competing new products to see how they work
 Other sources include Trade Magazines, Trade shoes, websites etc.
The most important sources of new product ideas are Customers themselves
Crowdsourcing: Through this process, a company invites broad communities of
Customers, employees, & public for the innovation process.
 NEW PRODUCT DEVELOPMENT
STRATEGY
IDEA SCREENING
 Here the purpose is to create a large number of ideas.
 The purpose of the succeeding stages is to reduce the number.
 Idea Screening help spot good ideas & drop poor ideas as soon as possible.
 Product development cost rise greatly, & the company would like to go ahead with
those ideas that will turn profitable.
 Many companies require their executives to write up new product ideas that can be
reviewed by a “New product Committee”.

R-W-W FRAME WORK

R – Is it REAL ?
R – can we WIN ?
W – Is it Worth Doing?
 NEW PRODUCT DEVELOPMENT
STRATEGY
CONCEPT DEVELOPMENT & TESTING
 An attractive Idea must then be developed into a product concept.

 Product Idea : It is an idea for a possible product that the company can see itself
offering to the market.
 Product Concept: It is the detailed version of the idea stated in meaningful consumer
terms (on the basis of S-T-P)
 Product Image: It is the way consumers perceive an actual or potential product.

It is a crucial stage in the new product development.

It helps to identify key perceptions, user needs and wants.
 NEW PRODUCT DEVELOPMENT
STRATEGY
CONCEPT DEVELOPMENT & TESTING
CONCEPT DEVELOPMENT
Concept development involves coming up with a detailed description of an idea, explained
from the perspective of your customer. A concept typically highlights the best features of
the proposed solutions in terms of:

1.convenience
2.usability
3.quality
4.functionality
5.performance
6.price
7.values
8.experience
 NEW PRODUCT DEVELOPMENT
STRATEGY
CONCEPT DEVELOPMENT & TESTING
CONCEPT TESTING
Concept testing is a process that helps you assess the customer reaction to the
proposed product or service prior to introducing it to the market.
It typically involves conducting surveys with a group of potential users rating one or
more of the statements relating to the concept.
For example, you may want to use concept testing to find out:

1.Are they interested in the product?

2.How much do they like the product?
3.How desirable do they find the product’s features?
4.What features do they like most/least?
5.How well would the product compare to other brands or similar product?
6.What price point would they find appealing?
7.What would they like to change about the product?