Idea Generation
The new product development process starts with the search for ideas. New product idea can come from interacting with various group and from using creativity generation techniques. It could be through journal, magazine or textbooks which is refers to literature review.
Company can also find good ideas by researching competitors of product and services. They can find out what customers like and dislike about competitor product. They can buy their competitors product take them apart and build ones company sales representative and intermediaries at the particular good save of ideas, these group have first hand exposure to customer and they are often to learn about competitive development.
Idea Screening
Once ideas have been conceived, they have to pass through a shifting process. The objective here is to eliminate those ideas, which are not consistent with the company’s policies and objectives. Ideas should be written down and reviewed by an idea committee. The company now sorts the proposed idea into three groups.
- Promising idea
- Reject idea
Each promising idea is research by committee the surviving idea move into full-scale screening process. The purpose of screening is to drop poor idea as much as possible.
The rational is that product development costs are substantially with each successive development stage.
Business Analysis
After management develops the product concept and marketing strategy. It can evaluate the proposals of business attractive. Management need to prepare sales, cost and profit projection to determine whether they satisfy company objectives if they do the concept can move to the business analysis will undergo revision and expansion. In the estimation of total sales, the sum of estimated, the first time sales, replacement sales and repeat sales will be considered sales estimation methods depend on the whether the production is a onetime purpose, a infrequently purchased product, or a frequently purpose product.
Product Development
This stage implies when the idea from the market may yield or lead to low sales of the product. This stage means the idea from paper is converted into physical goods where a given to customers to sell, giving it out free to people or at a reduce price by then you can commercialize the product for onward sales.
Test Marketing
Here, this stage is somehow interwoven with the upper stage in the sense that a few quantity is also produce from market test, so as to stimulate the public for the existence of the new product, it is at this stage when the management of the company will determine whether to make or commercialize the product.
Commercialization
This is the stage where the product is submitted to the market and this commences the life cycle. It is indeed final stage in the new product development process and it is a market introduction stage. At the stage a certain quality of production is produce for onward sales, as to make profit and desires goals.
2.1.2 CONCEPT OF NEW PRODUCT DEVELOPMENT
Carefully plan the steps involved in testing your new product development ideas. For every 7 new products ideas developed, I becomes successful. Defining your new product concept and testing it with your market will help you determine whether your new product idea will be success.
The concept development and testing of (NPD) can be time intensive, but it will help you avoid unnecessary costs later by ensuring you pursue the both new product concept in your market.
Create a product concept
A product concept is a detailed description of an idea, which you describe from the perspective of your customer. Taking your customer’s viewpoint when describing your product concept will help test and evaluate how responsive your market will be to your product.
