New Product Development Strategy
Rahul's Noteblog
Notes on Marketing Management
New Product Development Strategy
New Product Development Strategy:
A good new product development strategy is very important for a profitable product launch. If these steps are not followed carefully, the product may fail and may even cause the manufacturing company to go bankrupt. The new product development strategy involves 6 stages:
1. Generation of the product idea:
This is the first concept of the product that originates either from the customer, or from the manufacturer. There may be different variations of the same idea.
2. Screening of new ideas:
When a variety of ideas have been considered, a screening method is applied and bad ideas are separated from the good ideas.
3. Development of product concept and evaluation:
A concept product is built and tested. This concept product is tested by users in the actual environment the product is designed to be used.
4. Designing and evaluation of product:
Depending on how the product passes the conceptual evaluation, the product design now moves to engineering, production, or further research and development. It is at this stage that prototypes are built and tested. If the product faces any technical flaws, the product may be altered or completely redesigned.
5. Testing the actual Product:
This stage involves studying the consumer acceptance of the product. These are the required elements for a successful new product: satisfactory performance, economical production, costumer acceptance, adequate distribution and service arrangements, and effective branding and packaging.
6. Launch of the new product:
Launch of the actual product depends on the actual market test. If the sales are excellent, the product is immediately launched. If the sales are fair, a new market test is conducted or the product is redesigned. If the sales are poor, the product may be modified or product may be completely dropped.
Additional Readings:
1. Functions and Elements of Growth in Marketing Management
2. Marketing Organization and Functions of a Marketing Manager
3. Functions and Essentials of New Project Planning
4. Types and Various Stages of Market Studies
5. Naming Products and Name Testing Research
6. Planning of Advertizing Budgets
7. Basic Steps of Test Market Studies
8. Trade through Selected Agencies
9. Price and Motivation of Marketing
10. Marketing Functions at different levels of Development
11. Elements of a Marketing Mix
12. Advantages and Disadvantages of Branding
13. Packaging and Sales Promotion
14. New Product Development Strategy
15. Screening a New Product
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