New Product Development

Meaning & Definition

In business and engineering, new product development (NPD) is the the complete process of bringing a new product to market. A product is a set of benefits offered for exchange and can be tangible (that is, something physical you can touch) or intangible (like a service, experience, or belief).

Categories of new product

1. 2. 3. 4. New-to-the-world productNew product linesAdditions to existing product linesImprovement and revisions of existing product5. Repositioning6. cost reductions.

Factors contributing to New Product DevelopmentChanging customer preferences Technological changes Govt. policy

NPD Process
Idea Generation Identifying prospective customers/ defining target

Concept development & testing

Feasibility analysis

Product development

Test marketing

Commercialization