marketing new product development process

1. New Product
Development
Process .... Five steps in the New Product Development Process, as understood by most marketing
textbooks
1. Idea Generation
brainstorming - thinking about it
creating a new product based on some observed need
thinking of a new product based on some accident or chance circumstance
2. Screening
getting opinions from
o employees
o potential customers
o media
o government
what are the weaknesses of existing products that are similar
is there any competition for a new product
What are the industry sales and market trends the product idea is based on
3. Idea Evaluation / Concept Development
estimate costs, revenue, profit,
do market research
target market segmentation
o describe the main group of people who will be the first customers
4. Development of Product / Business Analysis
physically design and manufacture the product
estimate likely selling price based upon competition and customer feedback
estimate sales volume based upon size of market
produce a physical prototype or mock-up
test the product (and its packaging) in typical usage situations
5. Commercialization
"make enough to sell"
o manufacture a large amount to send out to the stores that will stock the items so enough
inventory on hand for the public to buy
launch "promotion campaign"