Stages Procedure Steps Of Novel Production Development

Stages Process Steps of New Product Development

The stages or procedure or steps involved inwards a new-product development are depicted inwards the ikon given below. Click on it to larn a zoomed preview.

Image credits © Luna Rodriguez.

The 8 stages or procedure or steps involved inwards the evolution of a novel production are listed together with too hyper-linked every bit follows:

1. Idea generation.
2. Idea screening.
3. Concept testing.
4. Business analysis.
5. Product development.
6. Test marketing.
7. Commercialization.
8. Review of marketplace lay performance.

Now let's hash out each phase inwards the procedure of a new-product development.

1. Idea generation

The begin pace inwards new-product evolution is thought generation.

New ideas tin survive generated by:

• Conducting marketing enquiry to honour out the consumers' needs together with wants.
• Inviting suggestions from consumers.
• Inviting suggestions from employees.
• Brainstorming suggestions for new-product ideas.
• Searching inwards dissimilar markets viz., national together with international markets for new-product ideas.
• Getting feedback from agents or dealers nearly services offered past times competitors.
• Studying the novel products of the competitors.

2. Idea screening

Most companies get got a "Idea Committee." This commission studies all the ideas really carefully. They choose the proficient ideas together with turn down the bad ideas.

Before selecting or rejecting an idea, the next questions are considered or asked:

1. Is it necessary to innovate a novel product?
2. Can the existing found together with mechanism arrive at the novel product?
3. Can the existing marketing network sell the novel product?
4. When tin the novel production intermission even?

If the answers to these questions are positive, together with hence the thought of a new-product evolution is selected else it is rejected. This pace is necessary to avoid production failure.

3. Concept testing

Concept testing is done later thought screening. It is dissimilar from exam marketing.

In this phase of concept testing, the companionship finds out:

• Whether the consumers sympathise the production thought or not?
• Whether the consumers demand the novel production or not?
• Whether the consumers volition convey the production or not?

Here, a pocket-size grouping of consumers is selected. They are given total data nearly the novel product. Then they are asked what they experience nearly the novel product. They are asked whether they similar the novel production or not. So, concept testing is done to honour out the consumers' reactions towards the novel product. If most of the consumers similar the product, together with hence business analysis is done.

4. Business analysis

Business analysis is a really of import pace inwards new-product development. Here, a detailed draw of piece of job concern analysis is done. The companionship finds out whether the novel production is commercially profitable or not.

Under draw of piece of job concern analysis, the companionship finds out...

1. Whether the novel production is commercially profitable or not?
2. What volition survive the damage of the novel product?
3. Is at that topographic point whatsoever demand for the novel product?
4. Whether this demand is regular or seasonal?
5. Are at that topographic point whatsoever competitors of the novel product?
6. How the total sales of the novel production be?
7. What volition survive the expenses on advertising, sales promotion, etc.?
8. How much turn a profit the novel production volition earn?

So, the companionship studies the novel production from the draw of piece of job concern indicate of view. If the novel production is profitable, it volition survive accepted else it volition survive rejected.

5. Product development

At this stage, the companionship has decided to innovate the novel production inwards the market. It volition convey all necessary steps to arrive at together with distribute the novel product. The production region volition brand plans to arrive at the product. The marketing region volition brand plans to distribute the product. The finance region volition render the finance for introducing the novel product. The advertising region volition excogitation the advertisements for the novel product. However, all this is done every bit a pocket-size scale for Test Marketing.

6. Test marketing

Test marketing agency to innovate the novel production on a really pocket-size scale inwards a really pocket-size market. If the novel production is successful inwards this market, together with hence it is introduced on a large scale. However, if the production fails inwards the exam market, together with hence the companionship finds out the reasons for its failure. It makes necessary changes inwards the novel production together with introduces it over again inwards a pocket-size market. If the novel production fails over again the companionship volition turn down it.

Test marketing reduces the direct chances of large-scale marketing. It is a security device. It is really time-consuming. It must survive done peculiarly for costly products.

7. Commercialization

If the exam marketing is successful, together with hence the companionship introduces the novel production on a large scale, tell all over the country. The companionship makes a large investment inwards the novel product. It produces together with distributes the novel production on a huge scale. It advertises the novel production on the volume media similar TV, Radio, Newspapers together with Magazines, etc.

8. Review of marketplace lay performance

The companionship must review the marketing functioning of the novel product.

It must reply the next questions:

1. Is the novel production accepted past times the consumers?
2. Are the demand, sales together with profits high?
3. Are the consumers satisfied amongst the after-sales-service?
4. Are the middlemen happy amongst their commission?
5. Are the marketing staffs happy amongst their income from the novel product?
6. Is the Marketing director changing the marketing mix according to the changes inwards the environment?
7. Are the competitors introducing a similar novel production inwards the market?

The companionship must continuously monitor the functioning of the novel product. They must brand necessary changes inwards their marketing plans together with strategies else the production volition fail.