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New Product Development Strategy

1) The document outlines the typical 7-step process for new product development: idea generation, idea screening, concept development and testing, developing an initial marketing strategy, business analysis, product development, and commercialization. 2) Idea generation involves collecting ideas internally from employees and externally from customers, distributors, and suppliers. Ideas are then screened to select the most promising concepts. 3) Selected concepts are developed into detailed product descriptions and tested with consumer focus groups to understand how people perceive the product. 4) An initial marketing strategy is then created covering target markets, pricing, distribution, budget, and long-term profit goals.

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Muhammad Nouman
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8 views3 pages

New Product Development Strategy

1) The document outlines the typical 7-step process for new product development: idea generation, idea screening, concept development and testing, developing an initial marketing strategy, business analysis, product development, and commercialization. 2) Idea generation involves collecting ideas internally from employees and externally from customers, distributors, and suppliers. Ideas are then screened to select the most promising concepts. 3) Selected concepts are developed into detailed product descriptions and tested with consumer focus groups to understand how people perceive the product. 4) An initial marketing strategy is then created covering target markets, pricing, distribution, budget, and long-term profit goals.

Uploaded by

Muhammad Nouman
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

NEW PRODUCT

DEVELOPMENT
[Document subtitle]
New product development
New idea which means originally product, product improvement and modification or new brand
launch through R&D effort. R&D is separate department in a company that focus on
improvement of product.
Following are step new product developed
1) Idea generation
It starts with first step is idea generation A company collect/generate thousands of ideas.
And find some good ideas ones. There are many different sources to generate ideas, but
major is internal (include within company like employee) and external source (include
outside of the company like distributor, supplier and customer)
2) Idea Screening
Idea screening mean reduce ideas as soon as possible. As know that idea generation
purpose is create many ideas but in idea screening finding good ones by dropping poor
ideas.
3) Concept development and testing
A good idea is an attractive must be developed into a product concept. There is difference
between product idea and product concept. Product idea mean company collect idea for
product as company can but in product concept there is full detailed description of idea
stated in meaningful consumer. And Concept testing company make focus group which
consist of thirty to sixty people and given detailed about product idea and concept. The
main goal is identified how people perceived our product.
4) Marketing strategy developed
Developed initial marketing strategy for new product. It based on the product concept.
It consists of three parts. First part is describing who is your target market? Either target
market is younger or high- or low-level income etc. Second part describe product price,
distribution marketing budget and last third part describe long term strategy which means
profit goals and marketing mix
5) Business analysis
In business analysis top level management review the sales, cost and profit for new
product and analysis that whether this product is satisfied our company objective or not.
If they do then next step is proceeding that is called product developed
6) Product development
In this stage R&D and engineer developed the product concept into physical product
development.
7) Commercialization
In this step company launch new product in the market. Moreover company spent
millions of dollars for advertisement, sales promotion.
Product life cycle chat

Introduction Growth maturity decline

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