What Is The New Product Development Process

Submitted By Archer-Li
Words: 444
Pages: 2

The New-Product development process is a method of designing a new product so that it will be successful. The first of eight steps in this process is the new-product strategy, where the company makes a connection between new products and the objectives of the company, this is part of the company’s overall marketing strategy. The second stage is idea generation, this is the process of gathering ideas for potential products, these ideas can come from various sources including, customers, employees, distributors, competitors, research and development, and consultants.
The third stage is idea screening, this is where products that either don’t go with the company’s new-product strategy or are obviously inappropriate are rejected. The fourth stage is business analysis, this is where the figures such as demand, cost, sales and profitability are calculated, and any product that would not be profitable to the company would be removed in this process. The fifth stage is development, this is when the product prototype is created by research and development, lab tests would be carried out, and the marketing team would at this time start planning the products packaging, branding and labelling. The sixth stage is test marketing, this is when a product is released to a small population to give the company some insight into the reactions of the customers when the product is released, this can prevent failed products from averting their larger market. The seventh stage is commercialisation, this is when the new product is considered ready for release, in this stage production commences and training is implemented ready for release of the product. The final stage new product is when the product is released to for the customers