The sales team has a critical role at every stage of the NPD process. So does product marketing. These roles are very different and each crucial to the ultimate product commercialization success in the marketplace.
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The Critical Role of Sales Throughout the New Product Development Process
1. WHERE’S SALES
IN YOUR NPD
PRCESS?
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The New Product
Development Process
from a Sales & Marketing
roles standpoint.
2. Design
Milestone 1 Milestone 2 Milestone 3 Milestone 4 Milestone 5 Milestone 6
Ideation
Concept
Generation
Implementation
Audit
Production
Customer Needs
Market Research
Competitive Analysis
Features / Benefits
SKU Count
Preliminary Timeline
Models/rendering
Focus Groups
Concept Selection
Supply Chain
Quality Plan
Detailed Design
Verification
Patents
Costing
Project Schedule
Packaging
Mfg / QC Plan
Tooling Estimates
Communications
Checklist
Supply Chain
Machinery / Tool
First Articles
Customer Service
Training
Sample Books Pilot Production
Run
Production
Verification testing
Sales
Communication
Launch
Financial Audit
Customer Satisfaction
NPD Process Audit
NEW PRODUCT DEVELOPMENT
PROCESS – MARKETING
3. Ideation
Identify Customer Needs
Market Research
Competitive Analysis
Features / Benefits
SKU Count
Preliminary Timeline
PDR Involvement
− Reality Check / Sales Feedback
− Retail Landscape
Co-development Opportunities?
Account Needs
Sales / Account Management
Marketing / R&D
NEW PRODUCT DEVELOPMENT
PROCESS – IDEATION / GAP ANALYSIS
4. PDR Involvement
Question: Innovative or Derivative Mod. / “Me
Too” Product?
− Innovative: Hold over to Design Phase
− “Me Too”: Preliminary Meeting to gauge
interest
More closely identify Account Needs and
Priorities
Help define merchandising plan
Sales / Account Management
Concept
Generation
Models / Rendering
Focus Groups
Concept Selection
Supply Chain
Quality Plan
Marketing / R&D
NEW PRODUCT DEVELOPMENT
PROCESS – CONCEPT GENERATION
5. Sales / Account Management
Detailed Design
Verification
Patents
Costing
Project Schedule
Formal Meeting with Customer
− Customer feedback on product
− Confirm customer interest & intentions (if pricing
can be confirmed, Formalize Commitment)
− Quantify size of opportunity / soft timing
− Potential risks to existing business / swap-outs
or buyback cost
− Pricing Range
Refine Merchandising Concept
Demand Planning
Design
Mfg/QC Plan
Tooling Estimates
Communications Checklist
Supply Chain
Packaging
Marketing / R&D
NEW PRODUCT DEVELOPMENT
PROCESS – CONCEPT GENERATION
6. Sales / Account Management
Finalize Pricing and ensure Product Profitability
Formal Commitments from Buyer and
Merchandising Vice President / GMM on:
− Dates / Timing of Launch
− Quantities
− Launch Plan / Advertising & Merchandising Plan
− Customer Support if warranted
− Logistics / Operations Communication
Machinery / Tooling
First Articles
Customer Service
Training
Sample Books
Implementation
NEW PRODUCT DEVELOPMENT
PROCESS – IMPLEMENTATION
Marketing / R&D
7. Sales / Account Management
Final Sample to Customer
Reconfirm Commitments
Secure Orders
Field Communications / PK / Sell Sheets
Pilot Production Run
Production Verification Testing
Sales Communication
Launch
Production
Marketing / R&D
NEW PRODUCT DEVELOPMENT
PROCESS – PRODUCTION
8. Sales / Account Management
Flawless In-store Execution
Monitor POS
Communicate Results – both positive and
negative to Account and Division
− Develop corrective action plan with marketing
if needed
Creative Merchandising Ideas
Financial Audit
Customer Satisfaction
NPD Process AuditAudit
Marketing / R&D
NEW PRODUCT DEVELOPMENT
PROCESS – AUDIT
9. Design
Ideation
Concept
Generation
Implementation
Audit
Production
NEW PRODUCT DEVELOPMENT
PROCESS – ACCOUNT MANAGEMENT
PDR Involvement
− Reality Check /
Sales
− Feedback
− Retail Landscape
Co-development
Opportunities?
Customer Needs
PDR Involvement
Question: Innovative
or Derivative Mod. /
“Me Too” Product?
− Innovative: Hold
over to Design
Phase
− “Me Too”:
Preliminary
Meeting to gauge
interest
More closely identify
account need and
priorities
Help define
merchandising plan
Formal Meeting with
Customer
− Account feedback
on product
− Confirm Account
interest & intentions
(if pricing can be
confirmed, formalize
commitment)
− Quantify size of
opportunity / soft
timing
− Potential Risks to
existing business /
swap-out or
buyback costs
− Pricing Range
Refine Merchandising
Concept
Demand Planning
Finalize Pricing &
ensure Product
Profitability
Formal Commitments
from Buyer & MVP on:
− Dates / Timing of
Launch
− Quantities
− Launch Plan /
Advertising &
Merchandising Plan
− Account Support if
warranted
− Logistics/Operations
Communication
Final Sample to
Customer
Reconfirm
Commitments
Secure Orders
Field
Communications /
PK / Sell Sheets
Flawless In-store
Execution
Monitor POS
Communicate Results
both positive and
negative to customer
and business
− Develop corrective
action plan with
marketing if
needed
Creative
Merchandising Ideas
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10. 10
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Greg Bonsib is a marketing expert and consultant who has worked with sales
and marketing teams at companies such as Newell Rubbermaid, Owens Corning, Zenith
Products, SentrySafe and others to successfully launch new products and programs that
grew both the top and bottom lines.
Greg’s thoughts and insights on marketing can be found at channelinstincts.com. He can
be reached at greg@channelinstincts.com.