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1. Idea generation Identify product ideas that will provide important customer benefits compatible with company mission. 2. Product concept Expand product ideas into more complete product development concepts and estimate the potential commercial success of and screening product concepts. 3. Marketing strategy Develop preliminary plan for target markets, pricing, distribution, development and promotion. 4. Business analysis Estimate potential for profit. What is the potential demand, what expenditures will be required, and what is the cost of marketing the product? 5. Technical development Design the product and the manufacturing-and-production process. 6. Test marketing Develop evidence of potential success in the real market. 7. Commercialization Implement full-scale marketing plan.
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What is Sequential Product Development?
Sequential product development is when a new product is dealt with each different department in separate phases. This process helps retain focus in complex product projects. One product can come through a marketing department multiple times befor ever being commercialized.
Seven phases to new product development?
The Seven Phases of New Product Development: 1. Idea Generation-looking for product ideas that will help a firm to achieve its objectives. 2. Screening-a firm's managers consider whether the organization has personnel with the expertise to develop and market the proposed product. 3. Concept Testing-product idea is presented to a small sample of potential buyers through a written or oral description to determine their attitudes and initial buying intentions regarding the product. 4. Business Analysis-provides tentative ideas about a potential product's financial performance, including probable profitability. The firm considers how the new product would affect the firm's sales, costs, and profits if it were introduced. 5. Product Development-the company must find out if it is technically feasible to produce the product and then if the product can be made at costs low enough to justify a reasonable price. It is then transformed into a prototype. 6. Test Marketing-the limited introduction of a product in several towns or cities chosen to be representative of the intended target market. Its aim is to determine buyers' probable reactions. 7. Commercialization-plans for full‐scale manufacturing and marketing must be refined and completed, and budgets for the project must be prepared.
What are the Disadvantages of product development?
The disadvantage of product development is that it can get costly because resources are required by the Research and Development department of the business; a lot of experiments and tests are also performed.Secondly, product development involves a risk of whether the consumers will like the new features that have been developed/added to the new/existing product.
What is typically involved in new product development?
There are two main components of bringing a new product into development. The first is generating an idea, detail engineering and the product design. The second is market research and analysis.
What is the process of a new product development about?
There are a number of things a firm has to keep in mind when any new product development process has been started. If you have a proper plan and information about that particular project then you can clarify your stages of new product development. There are 10 main stages of new product development (NPD): - Idea Generation Idea screening Concept Testing Product Prototype External Refinement and Testing (Beta Test) Perfect the Design and Prepare for Production Prepare for Potential Issues and Solutions Commercialization Post Launch Activities Review the Performance of New Product
