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NEW PRODUCT DEVELOPMENT PROCESS
NIKHIN JOSEPHII SEM MBA TTROLL NO: 13
NEW PRODUCT DEVELOPMENT PROCESS Every company should be good in
developing new products should also be an expert in changing
its features according to the market changes
1.IDEA GENERATION
Search of new ideas what the company wants from its new
product sources of idea are 1. internal sources – inside the company 2. customers – research 3. competitors – evaluation 4. distributors and suppliers 5. other sources -
2.IDEA SCREANING Important stage Purpose is to create large number of
ideas and screening it. ideas of new profitable product Make rough idea of market size, prize,
development time, cost and rate of return Questions like does it mesh with the
companies objectives and strategies, do we have people, resources, skills, and equipments etc??????
3.CONCEPT DEVELOPMENT AND TESTING Ideas are converted into product concepts Product is evaluated in the eyes of the
consumers eg. Major restaurants introducing new menu The concept is developed by many market
analysis Testing to target consumers, and takes
simple consumer attitude surveys and get into assumptions
Testing occurs according to the size of the firm
4.MARKETTING STRATEGY DEVELOPMENT Designing an initial marketing
statement which consist of 1. target market, product
positioning, sales, market share, and profit for the first year
2. products planned size, distribution, and marketing budget for the first year.
3. planned long run sales, profit goals and marketing mix strategies for long time
5.BUSSINESS ANALYSIS
Checks about the business attractiveness
It is a review of sales, costs, and profit projection to satisfy companies objectives
Also checks sales history of similar product and survey market opinion
after sale forecast they estimate the expected cost and profit
This analysis include the total marketing cost
6.PRODUCT DEVELOPMENT
product concept is converted into product
product depends on the market evaluation
product should also depend on the costumer need
can be a long or a short term process
7.TEST MARKETTING
Testing the product in any small demographical region Generally done when not sure of product or marketing
programme and huge investment helps marketers to gain experiences in marketing, find
potential problems, any alternation before mass production it evaluates the product and also the entire marketing
program in real life situation The product, its positioning strategy, advertising
distribution, prizing, branding, packaging, budgets are evaluated
Thus solving all problems and move into mass production
8. COMMERCILAZATION
Mass production of the tested product
requires huge investments requires answers for 1. when – right time to introduce 2. where – place of introduction 3. to whom – target its promotion
and distribution to the prospects
group 4. how – production budget
THANK YOU