NEW PRODUCT

NEW PRODUCT

OFFERING

OFFERING

INTRODUCTION

New-product development is the development of original products, product improvements, product modifications, and new brands through the firm’s own R & D efforts.

CONT.. Idea GenerationIdea Generation

The systematic search of new-product ideas.

There are two types of generating the idea internal source and external source

Appoint a respected senior person to be the company's idea manager.

Create a multidisciplinary idea management committee consisting of people from R&D, engineering, purchasing, operations, finance, and sales and marketing to meet regularly and evaluate proposed new-product and service ideas.

CONT..

Set up a toll-free number for anyone who wants to send a new idea to the idea manager.

Encourage all company stakeholders—employees, suppliers, distributors, dealers— to send their ideas to the idea manager.

Set up formal recognition programs to reward those who contribute the best new ideas.

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Idea ScreeningIdea Screening

Screening new-product ideas in order to spot good ideas and drop poor one as soon as possible.

Concept Development & TestingConcept Development & Testing

A detailed version of the new-product stated in meaningful consumers terms.

Testing new-product Concept to find out if the concepts have strong consumer appeal.

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Marketing strategy developmentMarketing strategy development

Designing an initial marketing strategy for a new product based on the product concept.

Normally marketing strategy, consists of three parts The Target Market

Product’s price, distribution, & marketing budget

Sales, Profit and marketing mix

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Business Business analysis

A review of the sales, costs & profit projections for a new product to find out whether these factors satisfy the company’s object.

Product developmentProduct development

Developing the product concept into physical product in order to assure that the product can be turned a workable product.

CONT..

Testing marketingTesting marketing

The stage of new-product development in which the product and marketing program are tested in more realistic market setting.

There are two types of marketing test Standard Test Markets

Controlled Test Markets

Simulated Test Markets

CONT..

CommercializationCommercialization

Introducing product in marketIntroducing product in market