New product development (NPD

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NPD is a process which designed to develop, test and consider the viability of products which are new to the market in order to ensure the Growth or survival of the organisation.

What is a new product ?      A product that opens an entirely new market A product that adapts or replaces an existing product A product that significantly broadens the market for an existing product An old product packaged in a different way An old product marketed in a different way .

Why develop NPD         To add to product portfolio To replace declining product To take advantage of new technology To defeat rivals To maintain/increase market share To keep up with rivals To maintain competitive advantage To full gap in the market .

New product can be used       Increase/defend market share by offering more choice or updating older products Appeal to new segments Diversify into new markets Improve relationship with distributors Maintain the firm’s reputation a leading edge company Make better use of the organization's resources .

Types of new product      New product – innovative products New product lines – to allow the firm to enter an existing market Addition to product line – to supplement the firm’s existing product line Improvements and revisions of existing product Repositioned products – existing products targets at new market .

Examples of new products     New to the world – high definition TV. ipod. flat screen TV New products lines – Mars ice creams Addition to the products line – weetabix launched fruitibix Product improvement & replacement new car model .

New product planning   This is the strategic stage The firm assesses It current product portfolio Opportunities and threats  The firm then determines the type of product which would best fit in with the corporate strategy .

Stages in NPD        Idea Generation Idea Screening Concept development and testing Market strategy development Business development Test marketing Commercialization .

It involves delineating sources of new ideas and methods for generating them. systematic search for new product opportunities.Idea Generation  Idea generation is continuous. .

unsuitable or otherwise unattractive ideas are weeded out form further actions .Product Screening  In product screening poor.

Concept testing  Concept testing present the consumer with a proposed product and measure attitudes and intention at this early stage of development .

Business & financial Analysis  Business and financial analysis for the remainning product concepts is much more detailed than product screening .

Product Development  Product development converts a product idea into a physical form and identifies a basic marketing strategy .

Test Marketing  Test marketing involves placing a product for sale in one or more selected areas and observing its actual performance under the proposed marketing plan .

Commercialization  Commercialization involves implementing a total marketing plan and full production .

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