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2.new Product Development - Class
2.new Product Development - Class
2.new Product Development - Class
Development
Identifying Need
Creating Value
Role and Significance of New Product Development.
• Achieve Growth
• Satisfy Customers
• Combat Competition
2
Categories of New-Product
Marketing
Strategy Business
Development Analysis
Concept Product
Development Development
and Testing
Idea Market
Screening Testing
Idea
Generation Commercialization
1.Ways to Find New-Product Ideas
• Creative exercise • Keyword search to scan
• Time off for technical trade publications
people to putter • Competitor Mapping
• Observe Usage • Have employees visit
• Coopt Customer supplier labs
• Survey customers • Set up an idea vault
• “ Fly on the wall” • Company R&D
research
2. Ideas screening
• What is the big value addition/ difference in the idea
• What/whose problem does it solve
• Target market size
• Projected Volume
• Competition,
• Price, VC, Contribution
• Cost and Time frame to develop, test and launch
3. Concept development and testing
• The more the tested concepts resemble the final product or experience,
the more dependable concept testing is.
• Risk
• Scenario/ Sensitivity analysis
Alpha testing- Controlled Lab test. Testing the product within the
firm to see how it performs in different applications
Customer tests
• Market testing:
– In testing consumer products, the company
seeks to estimate four variable
1. Trial
2. First repeat
3. Adoption
4. Purchase frequency/ replacement cycle
• At this stage
– Decision on Manufacture or build or rend a full-scale manufacturing facility are made
2. Compatibility- the degree to which the innovation matches the values and
experiences of the individuals
D e p th Interviews
Focus Groups
QUALITATIVE
Expert Ju d g e m e n t
Beta Tests