MARKETING

MANAGEMENT-NEW
PRODUCT
DEVELOPMENTAL
STAGES
PRESENTATION BY
JANSA BEEGOM.M.
MGT0905419
 INTRODUCTION
A company has to be good at developing and managing
new products.Due to the rapid changes in consumer
tastes technology and competition, companies must
develop a steady stream of new products and services.
A firm can obtain new products in two ways: one is
through acquisition –by buying a whole company, a
patent, or a license to produce someone else’s
product.The other is through new product development in
the company’s own research and development.
By new products we mean orginal products, product
improvements, product modifications and the new brands
that the firm develops through its own research and
developmental efforts.
 STAGES OF NEW PRODUCT
DEVELOPMENT
To create successful new products a
company must understand its customer,
market, and competitors and develop
products that deliver superior value to
customers. It must carry out strong new
product planning and set up a systematic
new product development process for
finding and growing new products.
Major stages in new product development
1. Idea generation
2. Idea screening
3. Concept development and testing
4. Marketing strategy
5. Business analysis
6. Product development
7. Test marketing
8. Implementation
 1. Idea generation
New product development starts with idea
generation – the systematic search for
new product ideas. A company typically
has to generate many ideas in order to
find a few good ones.
Major sources of new product
ideas include internal sources and external
sources
Internal Data sources
Using internal sources , the company can
find new ideas through formal research &
development . It can pick the brains of its
executives , scientists , engineers ,
manufacturing staffs & sales people
External Idea Sources
Customers , competitors, distributors &
suppilers , trade magazines, shows & seminars,
government agencies, new product consultants,
advertising agencies, marketing research firms,
university, commercial laboratories & inventors
 IDEA SCREENING
Screening new product ideas inorder to
spot good ideas & drop poor ones as soon
as possible

CONCEPT DEVELOPMENT & TESTING

An attractive idea must be developed in to a
product concept. Product concept means a
detailed version of the new product idea
stated in meaningful consumer terms
CONCEPT TESTING

Testing new product concept with a group of

target consumers to find out if the concepts
have strong consumer appeal. For some
concept tests, a word or picture description
might be sufficient. A more concrete and
physical presentation of the concept will
increase the reliability of the concept test
 MARKETING STRATEGY
DEVELOPMENT
Designing an initial marketing strategy for
a new product based on the product
concept.
Marketing strategy statement
consist of three parts .