New Product Development Process “When the change outside is greater than the change inside, the end is near” – Peter Drucker. New product is crucial because the market is changing…
the old trend might become new again… but it never stay still.
Only constant is change. That’s why we have to do the new product development process. There is a 7-step process comprising the key elements of new product development. The first step of new product development is idea generation which requires thinking of a new product based on some accident or chance circumstance.Creating a new product based on some observed need.
I think the sources of where new ideas come from the employees, industry associations, consumer surveys , accident and chance. In Step 2, the Screening, getting opinions from employees , potential customers , media and government ,so we can know what are the weaknesses of existing products that are similar ,whether there is any competition for a new product and What are the industry sales and market trends the product idea is based on .With these ideas in hand the marketer could do the third step Idea Evaluation.
They need to do estimate costs, revenue, profit, do market research ,target market segmentation and describe the main group of people who will be the first customers. In Step 4 the process becomes very dependent on market research as efforts are made to analyze the viability of the product ideas. physically design and manufacture the product ,the company should estimate likely selling price based upon competition and customer feedback and estimate sales volume based upon size of market .Try to produce a physical prototype or mock-up test the product in typical usage situations Although you did take a poll, sometime polls can not be really suit the market. After all, you’re not asking people to actually pony up with any money! The fifth thing is We need to give a test to the new product.
This is where the rubber meets the road and you need to find out if people are actually willing to buy your new and improved product. Be ready to make instant changes according to the test. If market testing displays promising results the product is ready to be introduced to a wider market.It is the sixth step.
The company firstly should make sure the product have “make enough to sell”. 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. Promotion the product to the customers. The last step is to affirm the New Product Pricing. The company will think about the Impact of new product on the entire product portfolio and do the Value Analysis .
and Forecast of unit volumes, revenue, and profit. Do the seven steps well , the new product must be popular in people. •