Step 1: Generating of Ideas
In the generation of a new product, ideas are the key to innovation. It focuses on coming up with possible solutions to perceived opportunities in the market trends (Kotler, Armstrong, Harris & Piercy, 2016). Idea generation enables one to stay relevant and make positive changes in the new product development process.
Step 2: Screening the Idea
In this step, the ideas tabled are screened and evaluated. The company’s employees discuss the ideas that should be carried on and the ones that should be dropped. The purpose of this step is to evaluate innovative product ideas, strategies and marketing trends (Kotler, Armstrong, Harris & Piercy, 2016). It also helps to determine compatibility with business objectives and whether the idea will offer a viable Return on Investments.
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Step 3: Testing the Concept
After the idea is screened, testing on the viability of the concept is done. It is at this stage that questions whether the consumer understands needs or wants the product to arise. It is done by observing the people’s needs. Concept testing is the reason why 50% of product launches fail to hit business targets (Kotler, Armstrong, Harris & Piercy, 2016). Failure of a concept can be prevented by choosing a test methodology where correspondents choose what they like. After the survey, one should identify the most promising product concept.
Step 4: Business Analytics
A new product idea that survives the screening stage of the new product development requires detailed business analysis. It helps one determine the costs involved in one’s proposed New Product Development and forecast the profits you will make from the product in future financial years (Brands, 2014). It helps one identify the profits, production cost, demand, competition, customer satisfaction, and advertisement of the product. This enables one to identify the possible pitfalls in the market context. It is at this stage that one finally accepts or rejects the idea of a new product.
Step 5: Marketability Test
It involves a substantial amount of market and consumer research and may take more time than other stages. The cost of test marketing tends to be expensive due to commercials and advertising agencies (Kotler, Armstrong, Harris & Piercy, 2016). The test market can alter one’s plans by giving you a no go, but in the absence of bad results, one can opt to carry on.
Step 6: Technicalities and product Development
It involves taking a product from concept to market availability. It includes identifying a market need, researching the competitive landscape, conceptualizing a solution, and building a minimum viable product.
Step 7: Commercialize
At this point, the product has gone through mainstream, consumers are purchasing the goods, and the technical support is monitoring the progress. Refreshing advertisements at this stage keep your product’s name firmly into the minds of loyal and potential buyers.
Step 8: Post-launch Review and Perfect Pricing
In this stage, since new products are introduced with introductory prices, final prices are nailed down after consumers have gotten the product. In this stage, the product manager gauges the overall value relevant to the cost of goods sold.
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Brands, R. (2014). 8 Step Process Perfects New Product Development. Retrieved 22 September 2020, from https://www.huffpost.com/entry/8-step-new-product-development_b_4556363
Kotler, P., Armstrong, G., Harris, L., & Piercy, N. (2016). Principles of marketing. New Jersey: Pearson Education, Inc.