Principles of Marketing

With due respect to our honourable

course teacher...
Md. Rakibul Hassan
 Spartan Marketers
Teammates :
 Sumaia Haque Nira ; ID No : 1630 (L)
 Tasniva Chowdhury Mumu ; ID No : 1611
 Munmun Islam Mou ; ID No :1615
 Md. Masum Billah ; ID No : 1653
 Md. Hannan Mia ; ID No : 1652
 Presentation On

New-Product
Development Process
 What is New-Product
Development ?

 Also known as NPD process.

 Process of taking a product or service from
conception to market.
 A journey leads to actual product to the market.
 Begins with ideation and ends with commercialization.
 Requires understanding customer needs,competitive
environment and nature of the market.
 New-Product Development
Process

Every product goes through a number of stages before being introduced in

There are mainly eight stages in product development process.
the market.
 3. 4.Market
2. Idea Concept ing
1. Idea
screeni develop strategy
generation ment & develop
ng
testing ment

6.Produ 7.Test 8.Com

5.Business ct
develop
market mercial
analysis
ment ing ization
 Idea Generation

“ Think openly and let your imagination rebuild yourself ’’

 First stage of the new product development process.

 Knowledgeable, creative and systematic.
 Develops from knowledge of the consumer, the market, and
the general environment.
 Creates newness in product, production and marketing.
 Sources of Idea Generation

 Internal sources.
 SWOT analysis.
 Market research.
 Customers.
 Idea Screening

 A process which is used to evaluate innovative product ideas,

strategies and marketing trends.
 Idea screening criteria are used to determine compatibility
with overall business objectives and whether the idea would
offer a viable ROL.
 Main objective is to eliminate unsound concepts prior to
devoting resources to them.
 Factors in Idea Screening

 Company’s strength.
 Company’s weakness.
 Customer needs.
 Ongoing trends
 Expected ROL.
 Affordability.
 Concept Development
& Testing

 Here, the product idea is converted into product concept.

 A detailed strategy or blueprint version of the idea.
 Develop a working description and visualization.
 Ideas are turned into concepts for testing purpose.
 Test ideas with real customers.
 Marketing Strategy
Development

 Preliminary marketing strategy to introduce new product into

market.
 Understanding customer.
 Analyze the market.
 Research distribution channels.
 Define marketing mix.
 Analyze the financials.
 Review and revise.
 Business Analysis

 A review of sales, costs and profits for a new product.

 Estimate product price.
 Identify product’s market potential.
 Identify break-even point.
 Determine minimum sale price.
 Forecast the lifespan of a product.
 Product Development

 Develop the product concept into a physical product.

 Product idea turns into workable offering.
 Creates a prototype product or service.
 Undergo rigorous tests to make sure it’s performance safety
and effectiveness.
 Test Marketing

 Product and marketing program are tested in realistic market

settings.
 Modifies the product or service according to customer’s
feedback.
 Involves deciding the best timing and process for piloting
new product or service.
 Commercialization

 Commercialization involves implementing a total marketing

plan and full production
 Works as a supply chain management process.
 Provides structure for developing and bringing to market new
products.
 Works jointly with customers and suppliers.
 Conclusion

Developing new products with high growth potential is not simple task.
Around 10,000 new products are brought to the marketplace each year, but
many of them fail due to poor product development process. These eight
stages of process is expensive and time-consuming but helpful in avoiding
costly mistakes.
Any Query ?
Thank you