New Product Development
The Need for New Products
In dynamic markets companies must constantly introduce new products and services to keep up with changing consumer wants and needs.
A good NPDS can help organize research, prioritize customer needs, and reduce cost overruns, to ensure a smooth development process.
The success of product-driven companies is directly tied to new product development, which is generated through innovative ideas.
During screening, the company evaluates whether to devote further resources to the development of a product at various stage gates.
Concept testing is important for evaluating consumer responses to a product before market introduction.
The output of the business analysis stage is a prediction about whether the product is likely to be profitable or not if ultimately produced.
Development involves setting product specifications as well as testing the product with intended customer groups to gauge their reaction.
Test marketing is the final stage before commercialization, and is where all the elements of the marketing plan are tested.
Commercialization the process of launching a new product; it may involve heavy promotion and filling the distribution networks with the product.
Success and Failure: Strategies to Improve Success
Marketers must learn from their own previous failures, and others' failures, to ensure that they are successful for the next product launch.