Merck and Company: The New Product Development Process
Merck and Company
Introduction The business environment of the 21st century is very different from the business environment 200 years ago. Since the Industrial Revolution until today, businesses have developed more and more products to meet the needs of an ever increasing world population. The cycle of business has been changed dramatically since the invention of the Internet, which has shortened the selling cycle and made it more convenient for consumers to shop from the comfort of their own homes . When online shopping, consumers are more likely to purchase a product spontaneously, or discard products more frequently, which results in a need for more products to purchase. The new product development process is essential to all businesses because the potential for profit is so large in today’s consumption- based society. Products are developed quickly and merchandise is sold in a short period of time after production, thus generating revenue in a very short period of time. This shortened selling cycle requires a detailed and efficient process which is able to guide the organization through the six new product development steps which include: idea creation, idea screening, project planning, product development, test marketing, and commercialization (Donnelly, P.J., 2011). The new product development process at Merck and Company is a good example of an efficient and reliable process. Merck’s ability to create great products for the needs of their customers has allowed the company to gain a competitive advantage in the pharmaceutical market.
Idea Generation Idea creation is the first component of the new product development process. Companies must identify specific needs of their clientele and create ideas for new products. Many times, a preliminary analysis of the Strengths, Weaknesses, Opportunities and Threats is completed to determine needs. At Merck and Co., idea creation is usually the
References: Donnelly, P.J.(2011). Marketing Management: knowledge and Skills 10th edition. New York, NY: McGraw Hill Irwin Ulrich, K.T., & Eppinger, S.D. (2004). Product Design and Development, 3rd Edition. McGraw-Hill, New York. Merck and Company Research, Discovery and Development (n.d) retrieved Feb, 5th, 2012 from Merck and Company web page http://www.merck.com/research/discovery-and-development/home.html