1. NEW PRODUCT DEVELOPMENT
PROCESS
NIKHIN JOSEPH
II SEM MBATT
ROLL NO: 13

2. NEW PRODUCT DEVELOPMENT
PROCESS
 Every company should be good in developing
new products
 should also be an expert in changing its
features according to the market changes

3. 1.IDEA GENERATION
 Search of new ideas
 what the company wants from its new
product
 sources of idea are
1. internal sources – inside the company
2. customers – research
3. competitors – evaluation
4. distributors and suppliers
5. other sources -

4. 2.IDEA SCREANING
 Important stage
 Purpose is to create large number of ideas
and screening it.
 ideas of new profitable product
 Make rough idea of market size, prize,
development time, cost and rate of return
 Questions like does it mesh with the
companies objectives and strategies, do we
have people, resources, skills, and
equipments etc??????

5. 3.CONCEPT DEVELOPMENT AND
TESTING
 Ideas are converted into product concepts
 Product is evaluated in the eyes of the
consumers
 eg. Major restaurants introducing new menu
 The concept is developed by many market
analysis
 Testing to target consumers, and takes simple
consumer attitude surveys and get into
assumptions
 Testing occurs according to the size of the firm

6. 4.MARKETTING STRATEGY
DEVELOPMENT
 Designing an initial marketing statement
which consist of
1. target market, product positioning, sales,
market share, and profit for the first year
2. products planned size, distribution, and
marketing budget for the first year.
3. planned long run sales, profit goals and
marketing mix strategies for long time

7. 5.BUSSINESS ANALYSIS
 Checks about the business attractiveness
 It is a review of sales, costs, and profit
projection to satisfy companies objectives
 Also checks sales history of similar product
and survey market opinion
 after sale forecast they estimate the
expected cost and profit
 This analysis include the total marketing cost

8. 6.PRODUCT DEVELOPMENT
 product concept is converted into product
 product depends on the market evaluation
 product should also depend on the costumer
need
 can be a long or a short term process

9. 7.TEST MARKETTING
 Testing the product in any small demographical region
 Generally done when not sure of product or marketing
programme and huge investment
 helps marketers to gain experiences in marketing, find
potential problems, any alternation before mass production
 it evaluates the product and also the entire marketing
program in real life situation
 The product, its positioning strategy, advertising
distribution, prizing, branding, packaging, budgets are
evaluated
 Thus solving all problems and move into mass production

10. 8. COMMERCILAZATION
 Mass production of the tested product
 requires huge investments
 requires answers for
1. when – right time to introduce
2. where – place of introduction
3. to whom – target its promotion and
distribution to the prospects group
4. how – production budget

11. THANK YOU