New product development involves bringing a new product to market and obtaining feedback. It includes market research, concept testing, prototype development, market testing, and product launch. NPD is essential for businesses to keep up with changes and generate revenue from new products. The product development process involves identifying market opportunities, developing and testing concepts and prototypes, and launching the new product with marketing strategies. Market research helps determine the target market and potential for the new product. Concept testing and prototype development evaluate consumer response before full introduction.
New product development involves bringing a new product to market and obtaining feedback. It includes market research, concept testing, prototype development, market testing, and product launch. NPD is essential for businesses to keep up with changes and generate revenue from new products. The product development process involves identifying market opportunities, developing and testing concepts and prototypes, and launching the new product with marketing strategies. Market research helps determine the target market and potential for the new product. Concept testing and prototype development evaluate consumer response before full introduction.
New product development involves bringing a new product to market and obtaining feedback. It includes market research, concept testing, prototype development, market testing, and product launch. NPD is essential for businesses to keep up with changes and generate revenue from new products. The product development process involves identifying market opportunities, developing and testing concepts and prototypes, and launching the new product with marketing strategies. Market research helps determine the target market and potential for the new product. Concept testing and prototype development evaluate consumer response before full introduction.
New product development involves bringing a new product to market and obtaining feedback. It includes market research, concept testing, prototype development, market testing, and product launch. NPD is essential for businesses to keep up with changes and generate revenue from new products. The product development process involves identifying market opportunities, developing and testing concepts and prototypes, and launching the new product with marketing strategies. Market research helps determine the target market and potential for the new product. Concept testing and prototype development evaluate consumer response before full introduction.
complete process of bringing a new product to the market till its consumption & feedback from the end user of the business chain
It may be a new product, service or idea
Steps in Product Development Market Research/Opportunity Scan Concept Testing Prototype Development Market Testing Product Launch Why New Products? New product development is essential to any business that must keep up with market trends and changes Approximately one-third of the revenue a business generates is coming from products they did not sell five years ago Changing environment creates new demands and needs Selection of Product
Must be alert to quickly develop opportunities
Focus on markets or product categories
consistent with organization’s objectives, resources, capabilities and strengths
Securing a competitive advantage
New Product Ideas Company sources other than R&D 36.2% Analysis of the competition 27.0% Research & Development 24.3% Product users 15.8% Supplier suggestions 12.5% Product user research 10.5% Published information 7.9% Purpose of New Product A way of getting new and keeping old customers
Effective way of obtaining a competitive
advantage
Source of growth and excitement
New Product Categories New to the world products New product lines Product line extensions Improvements and revisions to existing products Repositionings Cost reductions Product Development Process Product Launch Test Marketing Prototype Development Concept Testing Market research and Opportunity scan Marketing Very important to product development success
Key to successful marketing is imaginative,
effective, creative communication Marketing Strategies
Increase the number of customers
Increase the average transaction
Increase the frequency of repurchase
Marketing Concepts Customer-oriented Strategy Customer service-oriented Business Profit-oriented Pricing Strategy Social Benefits Market Research Who is my target audience? Are there enough members of this target group to make the business worthwhile? How large is the potential market and how much of that potential market can I capture? Who is my competition and what would make someone choose my product over their current? Market Opportunity and Threats Societal Focus Economic Realities •GNP •Population Shifts •Disposable Income •Values •Discretionary Income •Attitudes •Competition •Trends Technological Development •Advance in Legal & Regulatory technology Condition •Market receptiveness •Laws to technology •Regulations Market Placement 1) Identify target markets Size and growth potential Ability and ease of reaching segment Good fit with organizational objectives Greatest revenue generation with least investment Market Placement 2) Determine opportunity Segment size Annual usage potential Anticipated annual growth rate Margin Value in use 3) Evaluate competition Strengths/Limitations Implications Concept Testing Concept testing is the process of using quantitative methods and qualitative methods to evaluate consumer response to a product idea prior to the introduction of a product to the market Concept Testing Determine Critical success factors Financial objectives Marketing mix strategies Product, Pricing, Promotion, Placement Marketing plan initiatives Activity, Budget, Timing Prototype Development Prototype development is the process of preparing a device, technique or system that demonstrates the feasibility of a solution to a problem. 1) Experimentation and learning in the product development process 2) Testing and proofing product concepts 3) Communicating concepts to the product development team members, management and customers Test Marketing Test marketing is an experiment conducted in a field laboratory (test market) comprising of actual stores and real-life buying situations, without the buyers knowing they are participating in an evaluation exercise
Test marketing may last from few weeks to
several months Prototype and Test Marketing
Do you prefer this product over your current
product? Does this product meet the need you thought it would? Does the way the product works provide an important benefit? Promotion and Product Launch Publicity Trade journals Conferences Personal selling Word of mouth Reasons For New Product Failures Poor marketing research Technical problems Insufficient marketing effort Bad timing The wrong group was targeted Unrealistic forecast Insufficient level of awareness