A 7-Step New Product Development Process

Topics: Marketing, New product development, Product management Pages: 2 (480 words) Published: December 11, 2010
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...
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