STEP 1: IDEA GENERATIONIdeas from various sources such as customers,

sales force, R&D specialists, competing products,

suppliers, retailers

STEP 1: IDEA GENERATIONIdeas from various sources such as customers,

sales force, R&D specialists, competing products,

suppliers, retailers

STEP 2: SCREENINGScreening separates ideas with commercial

potential from those that cannot meet company

objectives

STEP 3: BUSINESS ANALYSISAssessing the potential market, growth rate and likely competitive strengths.

Concept testing subjects the product idea to

additional study prior to its actual development – to

measure consumer attitudes and perceptions about

the new product idea

STEP 3: BUSINESS ANALYSISAssessing the potential market, growth rate and likely competitive strengths.

Concept testing subjects the product idea to

additional study prior to its actual development – to

measure consumer attitudes and perceptions about

the new product idea

STEP 4: DEVELOPMENTConverts an idea into a visible product – build

prototype

STEP 5: TEST MARKETINGTo gauge consumer reaction

To verify that the product will perform well in real-life business environment. If the product does well, the company can process to commercialization

STEP 5: TEST MARKETINGTo gauge consumer reaction

To verify that the product will perform well in real-life business environment. If the product does well, the company can process to commercialization

STEP 6: COMMERCIALIZATIONFull-scale marketing