Successful new product development (NPD) starts with identifying good product ideas and using reliable criteria to decide which ideas to pursue. In idea generation, the field is kept wide so that no possible innovations are ignored, but it is focused within the aim of the project. In screening, the many ideas are reduced to smaller numbers and eventually to the one product concept, prototype product, processing method and advertising plan. The screening begins qualitatively and gradually develops, as more information is obtained, to a quantitative evaluation of the predicted outcomes for the product, production, market and finance.
Idea generation and
Idea Screening
Concept Development and
Testing
An important stage in the product development process where marketers attempt to obtain initial feedback about their ideas from both external and internal stakeholders.
Concept development is the gradual refinement of new ideas into a form that is most likely to be accepted in the marketplace. It not only gives promising ideas a fighting chance, it provides guidance for the communication of benefits, uses, packaging, advertising, sales approaches, product information, distribution, and pricing.
Concept testing is the attempt to predict the success of a new product idea before putting it on the market. It is usually conducted as a pass/fail, go/no go test. It is detested by creative people everywhere, with good reason.
Commercialisation
Commercialisation is the process of introducing a new product or service into the market.It makes a concept or idea into a real business opportunity. The Commercialisation Plan is a critical section of the proposal.
It is the primary opportunity to describe the strategy that your organisation will employ to generate revenue from the proposed innovation research.Innovations, no matter how novel or extraordinary, can fall short of their true societal and economic impact if they aren’t introduced to the right audiences. We find that quickest and most effective way to help new ideas find their way into new products or optimising the existing products.
Beta Testing and
Market Testing
A vital part of new product development is the product beta test and at times, a product market test. The beta test can help validate the product itself through a control group. In addition, a market test can validate the product as well as the marketing and distribution plans, the product support, and technical assistance if applicable through a control market launch. Through these two methods, our company can get an understanding of the product’s real-world usage and use feedback to work out any problems of usage difficulties.
Technical Implementation
A product can be defined as a collection of benefits that can be either tangible such as a physical item or intangible such as a service or experience. The new product development process involves two simultaneous activity paths. One of these focuses on extensive market research and analysis while the other deals with generating ideas, design of the product and detail engineering. Provided the technical aspects can be perfected without alterations to post-beta products, heading towards a smooth commercialisation. The production department will make plans to produce the product. The marketing department will make plans to distribute the product. The Finance department will provide the finance for introducing the new product.
New Product Pricing
A review of the entire process is a good idea to identify best practices and areas of improvement. The impact of this new product on the entire product portfolio should also be evaluated. An external and internal value analysis will help understand the impact of the product. The product may have been launched at an introductory price and it may now be time to decide upon an actual pricing strategy.
A pricing strategy takes into account segments, ability to pay, market conditions, competitor actions, trade margins and input costs, amongst others. Price is the value that is put to a product or service and is the result of a complex set of calculations, research and understanding and risk taking ability.
