Various stages involved in new product development
- Generation of Ideas – This is the first and foremost stage in new product development. The needs and wants of consumers are assessed with the help of marketing research. Suggestions from consumes and employees are taken into consideration. A lot of brainstorming happens for the germination of new product. The market and the competitors are researched at length.
- Screening of ideas – In this stage the good ideas and bad ideas are discussed at length. The necessity of the product, how it could be manufactured and the potential of the product is discussed.
- Concept testing – This is done to know if the product is good enough for the consumers. The need of the product and the acceptance of the product among the consumers are researched in this stage. A select consumer list is selected and they are briefed about the product. Then they are asked questions relating to the product.
- Business Analysis – The potential cost, profit and loss, demand and sales is arrived in this stage. This is an important stage as the viability of the product is gauged.
- Product Development – The production, marketing and finance team come together to develop the new product.
- Test Marketing – The product is introduced to a small circle in a small market. If the product is successful then the organization gets ready to produce it in large scale. If it is a failure, then the organization gets an opportunity to analyze the reasons behind the failure.
- Commercialization – The product is distributed and marketed in large scale. All mediums are used to effectively advertise and market the product.
- Review of the performance – This is the final stage. Satisfactions of consumers, distributors and middle men are studied. Competitor products are also compared to get a fair idea of where the company’s product stands in terms of quality. Constant monitoring of the performance is imperative for the success of a product.