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New Product Planning
This is the strategic stage The firm assesses
It current product portfolio Opportunities and threats
The firm then determines the type of product which would best fit in with the corporate strategy
New Product Development Process
Idea Generation Idea Screening
Concept development and testing Market strategy development
Business development Test marketing
Purpose – to identify as many new product ideas as possible
2. Company Research and Development
3. Sales representatives / employees
1. Idea generation is continuous, systematic search for new product opportunities. It involves delineating sources of new ideas and methods for generating them.
_Company employees at all levels
1. In product screening poor, unsuitable or otherwise unattractive ideas are weeded out form further actions
1. Concept testing present the consumer with a proposed product and measure attitudes and intention at this early stage of development
Business & financial Analysis
Business and financial analysis for the remainning product concepts is much more detailed than product screening
Assesses the potential profitability of the product concept Estimate sales
The product concept described on paper is turned into a physical product called a prototype.
Prototype is tested with sample groups from the target market.
Product development converts a product idea into a physical form and identifies a basic marketing strategy
Test marketing involves placing a product for sale in one or more selected areas and observing its actual performance under the proposed marketing plan
Product is tested under realistic purchase conditions.
Purpose – see how targeted consumers respond to product and other marketing mix elements
Product is introduced in one or more test cities
Commercialization involves implementing a total marketing plan and full production Product is placed on the market.
Involves setting up:
manufacturing facilities Channels of distribution Promotion for the product
Will often use a regional roll out
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