Explain the concept of New Product development process and how does a marketer use it for a successful product launch? Explain it with the help of how you can launch a product or service into the market following the steps.
Launching the new product and making it the reach the market is very important in new product development. It is important to understand the consumers, the markets, and competitors in order to develop products. This will help deliver superior quality and value for money products to the customers.
Following are the eight major steps in the new product development process:
Ideas are generated in this stage. The sources of new ideas could include the customers, competitors, newspapers, journals, employees and suppliers. It is a very important stage as it lays the foundation for the other steps and it will guide in the overall product development.
Under the screening process the ideas are filtered. Opinion from the workers, customers, and other businesses are sought. The viable ones are filtered in this stage. At the end of the screening process, the firm will only have a handful of ideas.
The attractive must turned into a product concept. A detailed version of the new-product idea stated in meaningful consumer terms is known as product concept. The new product concepts, should be need to be tested with various groups of target consumers.
After the product concept has been developed and tested, the company should work on designing an initial marketing strategy for the new product for introducing this new product to the market.
The business attractiveness of the proposed new product is evaluated in this step after the product concept and marketing strategy have been decided.
Until this step the new product could have been just a prototype. In this step it turns into an actual product. The product concept that has passed the business test must be developed into a physical product. In this step the product is developed and manufactured and will be ready for test marketing.
In this stage of the new product and its proposed marketing programme are tested in realistic market settings. Based on the results the manufacturer will decide whether or not to go for large scale testing.
It means introducing the product into the market. The company will incur huge expenses in manufacturing and advertising the product in this stage.