5.15 : New Product Development - Process

The new product development (NPD) process typically consists of seven key stages:

1. Idea Generation- In this stage, ideas come from various sources, including customers, competitors, employees, suppliers, or market research, to create a large pool of ideas for new products.
2. Idea Screening: In this stage, the generated ideas are evaluated for viability, considering market potential, feasibility, and alignment with the company's goals and resources.
3. Concept Development and Testing: The selected ideas are developed into product concepts and then tested among target consumers for initial feedback.
4. Marketing Strategy Development: A detailed marketing strategy for the new product is developed here, including targeting, positioning, and marketing mix.
5. Business Analysis: This stage evaluates the commercial viability of the new product based on estimated sales, profits, costs, and the break-even point.
6. Product Development and Test Marketing: This stage transforms the concept into a physical product by creating a prototype tested in a limited market area to assess consumer response and make necessary alterations.
7. Commercialization: If the test results are positive, the product is launched into the market, which includes decisions about the time and location of the launch.

Each stage is crucial in minimizing risk and increasing the probability of success for the new product.