New Product Strategy
The new-product strategy achieves four main goals: first, it gives direction to the new-product team to focuses team effort-, .second, it helps to integrate functional or departmental efforts; third, where understood by the new-product team, it allows tasks to be delegated to team members, who can be left to operate independently; and fourth, the very act of producing and getting managers to agree on a strategy requires proactive, not reactive, management, which increases the likelihood of a more thorough search for innovation opportunities.
Idea Generation
Idea generation should be systematic rather than haphazard. Otherwise, although the company will find many ideas, most will not be good ones for its type of business. A company typically has to generate many ideas in order to find a few good ones.
internal sources
Many new-product ideas come from internal sources within the company. The company can find new ideas through formal research and development. It can pick the brains of its scientists, engineers, designers and manufacturing people. Or company executives can brainstorm new-product ideas.
Customers
The company can conduct surveys to learn about consumer needs and wants. It can analyze customer questions and complaints to find new products that better solve consumer problems. Company engineers or salespeople can meet with customers to get suggestions.
Competitors
The company can watch competitors’ ads and other communications to get clues about their new products. Companies buy competing products, take them apart to see how they work, analyze their sales, and decide whether the company should bring out a new product of its own.
Idea Screening
The purpose of the succeeding stages is to reduce that number to a manageable few which
deserve further attention. The first idea-reducing stage is idea screening. The purpose of screening is to spot good ideas and drop poor ones as soon as possible
Concept Development
product idea
An idea for a possible product chat the company can sec itself offering to the market.
Product Concept
A detailed version of the new-product idea stated in meaningful consumer terms.
PRODUCT IMAGE
The image that consumers perceive on actual or potential product.
Concept testing
Testing new product concepts with a group of target consumers to find out if the concepts have real consumer appeal
Market Strategy Development
A statement of the planned strategy for a new product that outlines the intended target market, the planned product positioning, and the sales, market share and profit goals for the first few years. The second part of the marketing strategy statement outlines the product’s
planned price, distribution and marketing budget for the first year. The third part of the marketing strategy statement describes the planned long-run sales, profit goals and marketing mix strategy.
Business Analysis
Business analysis involves a review of the sales, costs and profit projections for a new product to find out whether they satisfy the company’s objectives. If they do, the product can move to the product development stage.
Product Development
Developing the product concept into a physical product in order to ensure that the product idea can be turned into a workable product.
Test Marketing
The stage of new product development where the product and marketing program are tested in more realistic market settings.
- Standard Test Markets
- Controlled Test Markets
- Simulated Test Markets
Commercialization
introducing the new product into the market – it will face high costs. The company will have to build or rent a manufacturing facility. It must have sufficient funds to gear up production to meet demand. Failure to do so can leave an opening in the market for competitors to step in.
- To whom?
- Where
- How?
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