1. New product development starts with idea generation—the systematic search for new product ideas.

A
company typically generates hundreds—even thousands—of ideas to find a few good ones. Major sources of
new product ideas include internal sources and external sources such as customers, competitors, distributors and
suppliers, and others
Using internal sources, the company can find new ideas through many sources. Companies must carefully
create organizational structures, processes, and cultures that create an environment where new thinking is part of
everyday operations.
Establishing R&D Research Centers.
Recognizing “Hidden” Ideas.
Using Technology to Generate Ideas.
Repurposing Existing Products.
External Idea Sources
Companies can also adopt a variety of approaches to glean new product ideas from the external environment.
These include the following.
Seeking Insights from Suppliers and Distributors.
Learning from Competitors.
Learning from Innovation Leaders outside the Industry
Learning from Customers.
More broadly, many companies are now developing crowdsourcing or open-innovation new product idea
programs that can span internal and external sources. Through crowdsourcing, a company invites broad
communities of people—customers, employees, independent scientists and researchers, and even the public at
large—into the innovation process.
2. The first idea-reducing stage is idea screening, which helps spot good ideas and drop poor ones.
One marketing expert describes an R-W-W (“real, win, worth doing”) new product screening framework that
asks three questions. Is it real? Can we win? Is it worth doing?
3. Product concept
A detailed version of the new product idea stated in terms that are meaningful to the consumer.
Concept Development
Suppose a company is grappling with how to bring a relatively new product or service to market.
Concept testing
Testing new product concepts with a group of target consumers to find out if the concepts have strong consumer
appeal.
4. Marketing strategy development
Designing an initial marketing strategy for a new product based on the product concept.
5. Business analysis
A review of the sales, costs, and profit projections for a new product to find out whether these factors satisfy the
company’s objectives.
6. Product development
Developing the product concept into a physical product or a detailed service blueprint to ensure that the product
idea can be turned into a workable market offering.
7. If the product passes both the concept test and the product test, the next step is test marketing, the stage at
which the product and its proposed marketing program are tested in realistic market settings. Test marketing
helps refine and finalize the product and the marketing program before investing in a full launch. It might even
result in the difficult decision to drop the product. Test marketing lets the company test the product and its entire
marketing program—targeting and positioning strategy, advertising, distribution, pricing, branding and
packaging, and budget levels.
A company may do little or no test marketing when the costs of developing and introducing a new product are
low or when management is already confident about the new product. For example, companies often do not test-
market simple line extensions or copies of competitors’ successful products.
8 Test marketing gives management the information needed to make a final decision about whether to launch
the new product. If the company goes ahead with commercialization— introducing the new product into the
market—it will face high costs.
Ii
[Link] new product development begins with a thorough understanding of what consumers need and
value.
Customer-centered new product development focuses on finding new ways to solve customer problems and
create more customer-satisfying experiences.
2. To get their new products to market more quickly, many companies use more of a team-based new product
development approach. Under this approach, multiple company departments work closely together in cross-
functional teams, overlapping the steps in the product development process to save time and increase
effectiveness
3. Finally, the new product development process should be holistic and systematic rather than
compartmentalized and haphazard. Otherwise, few new ideas will surface, and many good ideas will sputter and
die. To avoid these problems, a company can install an innovation management system to collect, review,
evaluate, and manage new product ideas.
Iii
[Link] development: The company finds and develops a new product idea. During product development,
sales are zero, and the company’s investment costs mount.
2,Introduction: A period of slow sales growth as the product is introduced in the market. Profits are nonexistent
in this stage because of the heavy expenses of product
introduction
[Link] the new product satisfies the market, it will enter a growth stage in which sales will start climbing quickly.
The early adopters will continue to buy, and later buyers will start following their lead, especially if they hear
favorable word of mouth. Attracted by the opportunities for profit, new competitors will enter the market. They
will introduce new product features, and the market will expand.
4. Maturity: A period of slowdown in sales growth because the product has achieved acceptance by most
potential buyers. Profits level off or decline because of increased marketing outlays to defend the product
against competition.
Product managers should do more than simply ride along with or defend their mature products—a good offense
is the best defense
In modifying the market, the company tries to increase consumption by finding new users and new market
segments for its brands.
The company might also try modifying the product—changing characteristics such as quality, features, style,
packaging, or technology platforms to retain current users or attract new ones.
Finally, the company can try modifying the marketing mix—improving sales by changing one or more
marketing mix elements. The company can offer new or improved services to buyers. It can cut prices to attract
new users and competitors’ customers. It can launch a better advertising campaign or use aggressive sales
promotions. In addition to pricing and promotion, the company can also move into new marketing channels to
help serve new users.
5. Decline stage
The PLC stage in which a product’s sales fade away. companies must identify products in the decline stage and
decide whether to maintain, harvest, or drop them. Management may decide to maintain its brand, repositioning
it in hopes of moving it back into the growth stage of the product life cycle. Management may decide to harvest
the product, which means reducing various costs (plant and equipment, maintenance, R&D, advertising, sales
force), hoping that sales hold up. If successful, harvesting will increase the company’s profits in the short run.
Finally, management may decide to drop the product from its line. The company can sell the product to another
firm or simply liquidate it at salvage value.
Product Decisions and Social Responsibility
Marketers should carefully consider public policy issues and regulations regarding acquiring or dropping
products, patent protection, product quality and safety, and product warranties.
International Product and Services Marketing
International product and services marketers face special challenges. First, they must figure out what products
and services to introduce and in which countries. Then they must decide how much to standardize or adapt their
products and services for world markets.
On the one hand, companies would like to standardize their offerings. Standardization helps a company develop
a consistent worldwide image. It also lowers the product design, manufacturing, and marketing costs of offering
a large variety of products. On the other hand, markets and consumers around the world differ widely.
Companies must usually respond to these differences by adapting their product offerings.