UNIT 8.

PHASES OF NEW PRODUCT DEVELOPMENT

EXERCISES:
I. Translate into Ukrainian:
Розробка (продукту); скринінг; генерація ідей; тестування концепції; бізнес-
аналіз; тестовий маркетинг; комерціалізація; атрибути продукту; перевага; розумна
ціна; упаковка; просування (продажів); витрати на розробку; маркетинг-мікс;
дослідження; дослідник; ринок; обґрунтувати; визначити; покращити; викупити;
окупити; відшкодувати витрати на розробку.

II. Find the English equivalents:

Development of a concept (idea); selection; proof of concept; mass sale; project cost
estimate; development costs; cover costs; physical properties; market; retail market; trial
overall evaluation; superiority; research and development; features; profitability; technically
feasible; reasonable price; develop; define; provide; improve; re-purchase; justify.

III. Fill in the blanks:

1. Before a new product is introduced, it goes through seven stages of development.
2. Idea generation involves looking for product ideas that will help a firm achieve its
objectives.
3. Ideas may come from marketing managers; researchers; engineers; competitors;
advertising agencies; management consultants; private research organizations, or customers.
4. During screening, ideas that do not match organizational resources and objectives are
eliminated.
5. Management may reject a good idea because the company lacks needed skills and
abilities.
6. Concept testing is a low-cost means to determine consumers' initial reactions to a
product prior to investing considerable resources in product research and development.
7. Product development personnel can use the results of concept testing to improve
product attributes and product benefits.
8. Business analysis provides a tentative forecast of a product's position in the
marketplace, including its probable profitability.
9. In the product development phase, the company must find out first if it is technically
feasible to produce a product.
10. During the test marketing, the product is left in the test markets long enough to give
buyers a chance to use the product if they are so inclined.
11. In the early phase of the commercialization phase, marketing management analyzes
the results of test marketing to find out what changes in the marketing mix are needed before the
product is introduced.
12. A new product may fail mainly because the product and its marketing program are not
designed and tested as completely as they should be.

IV. Translate into English:

1. Перш ніж новий товар надходить на ринок, він проходить сім фаз: розробку
концепції, відбір, перевірку концепції, комерційний аналіз, розробку товару, пробний
збут і масовий продаж. Before a new product enters the market, it goes through seven
phases: concept development, selection, proof of concept, commercial analysis, product
development, trial sales and mass sales.
2. При (during) розробці концепції фірми, які намагаються максимізувати
ефективність товарної номенклатури, зазвичай систематично розробляють нові
концепції товару. During concept development, firms trying to maximise the effectiveness
of their product mix usually systematically develop new product concepts.
3. При відборі концепції (ideas), які не відповідають ресурсам і цілям
організації, відкидаються. During the selection process, ideas that do not match the
organisation's resources and goals are rejected.
4. Перевірка концепції – це фаза, на якій невеликій групі потенційних покупців
представляють концепцію товару через письмове або усне опис, щоб визначити їх
ставлення і початкова купівельна намір щодо цього товару. Concept validation is a phase
in which a product concept is presented to a small group of potential buyers through a written
or verbal description to determine their attitudes and initial purchase intentions towards the
product.
5. На етапі (during the stage) комерційного аналізу фірма розглядає, як новий
товар міг би вплинути на збут (продаж), витрати і дохід. During the commercial analysis
stage, the firm considers how the new product could affect sales, costs and income.
6. У фазі розробки (development) товару компанія з'ясовує, чи можна
здійснити технічно виробництво товару і чи можна виробляти товар при досить
низьких витратах. During the product development phase, the company finds out whether it
is technically feasible to produce the product and whether it is possible to produce the
product at a sufficiently low cost.
7. Пробний збут – це обмежений вихід на ринок товару в декількох містах, щоб
визначити можливу реакцію покупців. Trial marketing is a limited entry into the product
market in several cities to determine the possible reaction of customers
8. На ранньому етапі масового продажу керівництво маркетингу аналізує
результати пробного збуту. At the early stage of mass marketing, marketing management
analyses the results of trial sales.
9. Новий товар може потерпіти невдачу в основному тому, що товар і програма
його збуту (its marketing program) не плануються і не випробовуються настільки повно,
як годиться. A new product can fail mainly because the product and its marketing
programme are not planned and tested as fully as they should be.

V. Questions and assignments:

1. How many phases does a new product go through before it is introduced? A new
product goes through seven phases before it is introduced.
2. List (перечислите) the seven phases of a product development. The seven phases
of a product development are: idea generation, screening, concept testing, business analysis,
product development, test marketing, and commercialization
3. Who do product ideas may come from? Product ideas may come from marketing
managers, researchers, engineers, competitors, advertising agencies, management
consultants, private research organizations, or customers
 4. Why may management reject a good idea in the screening phase? Management may
reject a good idea in the screening phase if the company lacks needed skills and abilities to
execute the idea
5. Pinpoint the main aim of concept testing. The main aim of concept testing is to
determine consumers' initial reactions to a product prior to investing considerable resources
in product research and development
6. Briefly describe the main objective (конечную цель) of business analysis. The
main objective of business analysis is to provide a tentative forecast of a product's position in
the marketplace, including its probable profitability
7. What must a company find out in the product development phase? In the product
development phase, the company must find out first if it is technically feasible to produce a
product
8. What is the aim of test marketing? The aim of test marketing is to test the product
in a limited market to get feedback on its performance, determine the target market's
acceptance, and identify any potential problems before the product's full-scale launch
9. With what can marketers experiment in different test areas in test marketing phase?
In test marketing, marketers can experiment with different advertising, pricing, and
packaging in different test areas
10. Do new advertising, pricing, and packaging give buyers a chance to researches the
product? Yes, new advertising, pricing, and packaging give buyers a chance to research the
product during test marketing
11. What may the results of test marketing tell the marketers during
commercialization? The results of test marketing can provide information on what changes
are needed in the marketing mix before the product is introduced during the
commercialization phase
12. Are new products usually introduced nationwide overnight? No, new products are
usually introduced gradually in specific markets and then expanded to a broader market if
successful
13. In what way most new products are marketed? Most new products are marketed
through various channels, such as advertising, personal selling, sales promotion, direct
marketing, and public relations.
14. Why may a new product fail? A new product may fail for various reasons,
including inadequate market research, poor product design, inappropriate pricing or
promotion, insufficient distribution, or intense competition

VI. Briefly describe the seven new product development phases (by writing down one
or two definitions for each phase).

Idea Generation - In this phase, various sources such as customers, employees,

competitors, and other stakeholders are used to generate new product ideas that align with the
organization's objectives.
Screening - This phase involves evaluating the feasibility of the product idea based on
criteria such as the organization's resources, market demand, and profitability.
 Concept Testing - This phase involves presenting the product idea to a sample of
target consumers to get feedback on the concept, packaging, pricing, and other product
attributes.
Business Analysis - In this phase, the product's viability is assessed based on market
research, sales projections, costs, and profitability.
Product Development - This phase involves creating and testing product prototypes,
refining the design, and developing production processes.
Test Marketing - This phase involves launching the product in a limited market to
assess customer response, identify any potential problems, and gather data to refine the
marketing strategy.
Commercialization - In this phase, the product is introduced to the wider market and
the full-scale marketing plan is executed. The goal is to generate sales and establish the
product in the market.

VII. Retell your written abstract.

The seven phases of new product development are a series of steps that companies go
through to introduce a new product to the market. The first phase is idea generation, where
new product ideas are generated from various sources, such as customers, employees, and
competitors. The second phase is screening, where product ideas are evaluated based on
feasibility, profitability, and market demand. The third phase is concept testing, where a
sample of target consumers provides feedback on the product concept. The fourth phase is
business analysis, where market research is conducted, and sales projections are made to
determine the product's viability. The fifth phase is product development, where prototypes
are created and tested, and production processes are developed. The sixth phase is test
marketing, where the product is launched in a limited market to assess customer response.
Finally, in the seventh phase, commercialization, the product is introduced to the wider
market, and the full-scale marketing plan is executed. The goal is to generate sales and
establish the product in the market.