Operations
Five steps in the New Product Development Process, as understood by most marketing textbooks
1. Idea Generation brainstorming - thinking about it creating a new product based on some observed need thinking of a new product based on some accident or chance circumstance
2. Screening getting opinions from employees potential customers media government what are the weaknesses of existing products that are similar is there any competition for a new product
What are the industry sales and market trends the product idea is based on
3. Idea Evaluation / Concept Development estimate costs, revenue, profit, do market research target market segmentation describe the main group of people who will be the first customers
4. Development of Product / Business Analysis physically design and manufacture the product estimate likely selling price based upon competition and customer feedback estimate sales volume based upon size of market produce a physical prototype or mock-up test the product (and its packaging) in typical usage situations
5. Commercialization
"make enough to sell" manufacture a large amount to send out to the stores that will stock the items so enough inventory on hand for the public to buy launch "promotion campaign" .
1. Concept Development and Testing
Develop the marketing and engineering details
Investigate intellectual property issues and search patent databases
Who is the target market and who is the decision maker in the purchasing process?
What product features must the product incorporate?
What benefits will the product provide?
How will consumers react to the product?
How will the product be produced most cost effectively?
Prove feasibility through virtual computer aided rendering and rapid prototyping
What will it cost to produce it?
Testing the Concept by asking a number of prospective customers what they think of the idea - usually[citation needed] via Choice Modelling.
2. Business Analysis
1. Idea Generation brainstorming - thinking about it creating a new product based on some observed need thinking of a new product based on some accident or chance circumstance
2. Screening getting opinions from employees potential customers media government what are the weaknesses of existing products that are similar is there any competition for a new product
What are the industry sales and market trends the product idea is based on
3. Idea Evaluation / Concept Development estimate costs, revenue, profit, do market research target market segmentation describe the main group of people who will be the first customers
4. Development of Product / Business Analysis physically design and manufacture the product estimate likely selling price based upon competition and customer feedback estimate sales volume based upon size of market produce a physical prototype or mock-up test the product (and its packaging) in typical usage situations
5. Commercialization
"make enough to sell" manufacture a large amount to send out to the stores that will stock the items so enough inventory on hand for the public to buy launch "promotion campaign" .
1. Concept Development and Testing
Develop the marketing and engineering details
Investigate intellectual property issues and search patent databases
Who is the target market and who is the decision maker in the purchasing process?
What product features must the product incorporate?
What benefits will the product provide?
How will consumers react to the product?
How will the product be produced most cost effectively?
Prove feasibility through virtual computer aided rendering and rapid prototyping
What will it cost to produce it?
Testing the Concept by asking a number of prospective customers what they think of the idea - usually[citation needed] via Choice Modelling.
2. Business Analysis