New product development is related to all those activities involved in making a new product. It comprises of many steps, namely idea generation, designing a product along with its packaging, its making and production accompanied with important activities like market research and analysis. Every step is significant and can’t be ignored.
The Steps Involved In New Product Development
First of all there is an idea which could come up in any individuals mind and can lead to existence of a new product in the market. The source of idea can be the work force of organization, market demand, changing trends etc.
At the second step that is screening of the idea, in this step it is decided that whether this idea be picked up or not depending on its possibility and affect on the cost and resources.
In the third step of concept developing and testing, target market is defined, its features are made clear, ways are defined to produce it cost effectively and then testing is done my picking people from target market and asking about their opinion about the idea.
Next step comprises of a business analysis, if the results of business analysis shows that it’s feasible and profitable in the long run then it is followed by product development. Testing and finally bringing the product in market by launching and commercializing it.
Importance Of New Product Development
The concept of new product development is very important for the growth of a company. Any company who has an aim of prospering and moving on must implement this concept so it remains viable and can survive in the long run.
Robert J. Thomas (1993), “New product development: managing and forecasting for strategic success”, John Wiley and Sons, pg 352