Steps for New Products

In: Business and Management

Submitted By shineo
Words 1349
Pages 6
Marketing research definition:
It is a development interpretation and communication of decision oriented information used in the strategic planning process.
Steps for NEW products: 1. Idea generation 2. Screening ideas 3. Business analysis 4. Pro- type development 5. Test marketing 6. Commercialization
Idea generation:
The PIC should then direct the search for new-product ideas. Idea generation should be systematic rather than haphazard. Otherwise, although the company will find many ideas, most will not be good ones for its type of business.
A company typically has to generate many ideas in order to find a few good ones.
A recent survey Irproduet managers found that of 100 proposed new product ideas, 39 begin the product development process, 17 survive the development process, 8 actually reach the marketplace and only 1 eventually reaches its business objectives.7
To obtain a flow of new-product ideas, the company can tap many sources.
Chief sources of new-product ideas include internal sources, customers, competitors, distributors and suppliers. * Internal Sources * Customers * Competitors * Distributors, Suppliers and Others

Screening ideas:
The purpose of idea generation is to create a large number of ideas. The purpose of the succeeding stages is to reduce that number to a manageable few which deserve further attention. The first idea-reducing stage is idea screening. The purpose of screening is to spot good ideas and drop poor ones as soon as possible.
As product development costs rise greatly in later stages, it is important for the company to go ahead only with those product ideas that will turn into profitable products. Most companies require their executives to write up new-product ideas on a standard form that can be reviewed by a new-product committee. The write-up describes the product, the…...

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