New product development: New product development (NPD) is the term used to describe the complete process of bringing a new product to the market.
Major stages in the new product development process are:
Idea generation: where do ideas come from?
Idea screening: Keep good ideas and drop the poor ones. Choosing the best idea among all the alternatives refers to idea screening. This process is very important where a single idea you choose decides the future of new product.
Concept development and testing: Develop a working description and visualisation of product idea and concept. Test the product concepts with group's of target customers. Choose the best one.
Marketing strategy development: part one - Overall: target market planned product positioning sales and profit goals and market shares. Part two- short term: products planned price distribution marketing budget. Part three- long term: sales and profit goals.
Business analysis: Review of product sales, costs, profit projections to see if they meet company objectives. If no, eliminate product concept. If yes, move to product development.
Product development: Develop concepts into physical product prototype, large jump in investment point of no return, Ashton refined prototype until product passes consumer and legal scrutiny.
Test marketing:
Commercialization: broad launch of product if market test results are positive, timing of lunch is important, potential role of plans
Implementation of new product development process with stages has helped business focus their new product investment on most potentially rewarding products.
Why does new products fail?
Only 10% of new customer product's succeed in the long run because all other products do not fulfill really need or want they overestimate the market size the design problems that comprise functionality they incorrectly position GPS where development costs go over budget and there will be huge competition for such products in the market. only few product survive in the market even though there is a competition that take it as an opportunity and try to give better quality products at a low cost it acts as an add-on to the company to increase its sales rather than giving the high quality products at high cost this type of companies use the strategies of cutting some percent of costs and giving the product into the market and attracting the customers is there main motive after once the product gains popularity and improve its sales considerable the increase their price for the product and hence the establish a great brand value in the market
