What factors may affect the length of the new product planning process?

New product planning is a vital activity in every company and applies to services as well as physical products. Companies that are successful in new product planning follow a step-by-step process of new product planning combined with effective organization designs for managing new products. Experience help these firms improve product planning over time. The corporate cultures of companies like Microsoft encourage innovation.

The following factors affect the length of the new product planning process: a. b. c. d. e. f. g. h. i. j. whether it is an industrial or consumer good corporate environment corporate risk factor number of new products to screen fit of the product with the company's objectives amount of time required for product development (Exhibit 11-9) amount of time for testing necessary revisions for successful testing amount of marketing research required (i.e. is it a new market?) time to produce a prototype

Range branding is a mixture of the two. For example, Toyota created the Lexus brand in order to establish a new brand for its luxury cars. The Toyota brand already had too much of an established market identity in order to compete in the high-priced market segment.