NEW

PRODUCT
DEVELOPMENT

Group 2
The New Product Development
Process
Rationale
To defend its market share
To position ahead of competition in a
market segment
To establish a foothold in a future market
To take advantage of strengths in product
distribution
 Product Development

Idea Generation
– Generate as many new product ideas as
possible
Idea Screening
– Where the ideas generated in initial step
are screened using predetermined criteria
Concept development and testing
– involves testing new-product concepts with a group of target
consumers

 Product idea
–is an idea for a possible product that the company can see
itself offering to the market.
 Product concept
-is a detailed version of the product stated in a way that end
consumers will understand.
 Product Image
- is the way the consumer perceives an actual or potential
Business Analysis
– Probable sales of the new product are calculated based on the
results of the testing. 
Product Development
– Where the new product is converted into a tangible working
prototype
Market Testing
– Marketed in a limited geographical area
Product Commercialization
– Where a new product is launched
 The Product Life Cycle
Product Development
–When the company finds and develops a new-
product idea
Introduction
–This is a period of slow sales growth as the
product is first distributed and made available in
the market.
 The Product Life Cycle
Growth
– This stage which a product’s sales starts climbing quickly.
Maturity
– This is a period of slowdown sales growth.
Decline
– The sales of most product forms eventually fall.
 Special Product Life Cycle
 Style
- is a basic and distinctive mode of expression
 Fashion
- a currently accepted popular style in a given field
 Fad
- a temporary period of unusually high sales driven by customer enthusiasm or brand
popularity.