3. Generating ideas-
The new-product development
process start with the idea generation . To
generate or collect the ideas companies use
different ways some of them discussed as
follows:
4. Encouraged by the open innovation
movement, many firms are going
outside theirs bounds to tap external
sources of new ideas, including
customers, employee, scientists,
engineers, channel members,
marketing agencies, top management,
and even competitors.
5. Employees can be source of ideas for
improving production, products, and services.
Toyoto claims that its employees submit 2
milllion ideas annually , over 85% of that are
implemented.
Top management can be other sours of ideas.
6. Companies can find good ideas by researching
the products and services of competitors and
other companies. They can find out what
customers like or dislike about competitors’
product.
7. Creativity can be stimulated in individuals and
groups using following ways:
Attribute listing
Forced relationship
Morphological analysis
Reverse assumption analysis
New contexts
Mind mapping
8. The purpose of screening is to drop poor ideas
as early as possible because product
development costs rise substantially with each
successive development stage.
9. A product idea is a possible product the
company might offer to the market. A product
concept is an elaborated version of the idea
expressed in consumer terms.
10. 1.Concept development:
e.g.-A large food-processing company gets
the idea of producing a powder to add to milk
to increase its nutritional value and taste.This
is product idea, but consumers don’t buy
product ideas; they buy product concepts.
11. A product concept first become a category
concept and after that it becomes brand
concept.
12. 2.Concept Testing:
Concept testing means presenting the
product concept , symbolically or physically, to
target customers and getting reactions.
13. Conjoint analysis:
We measure consumer preference for
alternative product conjoint analysis, a
method for deriving utility values that
consumers attach to varying levels of a
products’ attributes.
14. Following successful concept test, the product
manager will develop a preliminary three-part
strategy plan for introducing new product into
the market.
15. First part discuss the market’s size, structure,
And behavior; the planned product positioning
and the sales, market share, and profit goals
sought in the first few years.
16. Up to now, to now the product has existed only
as word description, a drawing, or a prototype.
The next step represents a jump in investment
that dwarfs the costs incurred so far.
17. The job of translating target customer
requirements into a work prototype is helped
by a set of methods known as quality finction
deployment(QFD).
A major contribution of QFD is improved
communication between marketers, engineers,
And manufacturing people.
18. Steps involve in product development are
To find physical prototypes that embodied
the key attributes in product-concept
statement,performs safely under normal use
and conditions, and can be produced within
budgeted manufacturing costs
Customer Tests
19. After mangement is satisfied with functional
and physiological performance, the product is
ready to be branded with name, logo, and
packaging and go into the market test.
1.Consumer-Goods market testing
2.Business goods Market Testing
20. Commercialization incurs company’s highest
costs to date. The firm will need to contract for
manufacture or build or rent a full-scale
manufacturing facility.
21. Most new product companies rely on a
sequenced mix of market of communication
tools.
When (Timing)
Where (geographic strategy)
To whom (Target-Market Prospects)
How (Introductory Market strategy)
