The fifth step in new product development is the commercialization or the launch of the new product. During this stage, the business should increase the product production and delivery so that the product is available to a larger share of the market. This will also involve observing the marketing data and production costs to determine whether the product will start earning profits as the company increases its sales volume.
The company should also design a marketing promotion strategy to market the new product and create awareness in the market Ahmed, The process of developing a new services such as those offered in restaurants is different to that the process of developing. The differences result from the differences between products and services, namely, intangibility, heterogeneity, perishability, inseparability, and simultaneity in production and consumption of the product and service.
These unique features of services make the process of designing and marketing the new service different from that of designing and marketing tangible products. For example, intangibility of services makes it difficult to share the new service idea with others in the organization.
This therefore means that the service development team must make the service tangible by the use of flow charts and pictures. Secondly, the new product ties the clients to the service provider or employees of the firm.
This means that designing a new service involves more work in training the personnel within the firm in order to offer the new service to the clients Annacchino, In conclusion, the process of designing a new product or service begins by identifying the opportunities available in the market. Next, the managers must screen the ideas, evaluation the available pool of ideas, develop the product, and commercialize the product.
Once the company has commercialized the product, it must design a marketing strategy to promote the new product or service in order to increase awareness among the customers. However, when designing and marketing a product, a firm must keep in mind the unique features of a service and adjust the product development and promotion strategy to match these features.
An integrative model of the new product development process. Test marketing also requires a long time compared to the use of pre-market test results.
It also presents various risks such as providing an advantage to competitors who may innovate a similar product of higher quality based on the pre-established tests. In conclusion, test marketing will provide me with the critical information about pertinent elements of our new bicycle marketing mix including the bicycle itself, the necessary promotional message and media spend, available distribution channel and appropriate pricing.
New Product Development Essay. University of Richmond Type of paper: This essay has been submitted by a student. This is not an example of the work written by our professional essay writers. New product development process As the marketing executive of the new merchandise that produces lightweight, easy-to-store bike with safety features that combines the speed of a road bike and the sturdiness of a mountain bike, I believe that the unique features of this product are not adequate determinists of its success.
QFD links specific consumer requirements such as versatility, durability, and low maintenance with specific product characteristics for example, adjustable shelves, a door-mounted ice and water dispenser, and touch controls for a refrigerator. The customer value perspective requires the new product to satisfy customer needs and meet desired quality levels at specified production costs. In Test marketing we will test the prototype and marketing strategy in simulated or actual market situations.
Because of the expense and risks associated with actual test markets, we need to use them with caution. If the product tests poorly, it will be pulled back and re-conceptualized or discarded. The level of investment and risk are highest at this stage. At this stage we will consider consumer adoption rates, timing decisions for introduction, and coordinating efforts with production, distribution, and marketing. Organizational structure, leadership, and team building influence the speed and efficiency with which new products are introduced.
Structure influences efficiency, autonomy, and coordination. New product innovation requires structure that optimizes direction and guidance. Structure that facilitates internal information exchange, decision making, and materials flow is essential. This type of structure also cuts costs because production materials and information collect less overhead and do not accumulate as work-in-process inventory.
Autonomy refers to the amount of decision making allowed at lower levels of management. The coordination of the engineering, product designs, manufacturing, and marketing functions in the new product development process is vital. Top management can demonstrate involvement in the development process by providing career advancement for entrepreneurial skills and encouraging broad employee participation.
Clarity and vision are crucial to ensuring that new product ideas are good strategic fits for the company. The degree to which leadership allows trial and error and promotes individual initiative positively influences the development of new products.
This acceptance of risk and support for an entrepreneurial spirit within the organization are crucial in order for innovation to flourish. New products emerge in a variety of ways and their development does not always proceed in rational and consistent manners. It is necessary for leadership to view the process as iterative and dynamic, and to foster adaptation and flexibility. This type of leadership is particularly important to the project manager who must coordinate and integrate the various parts of the new product development process so that a coherent system emerges that produces a product with compelling value.
Initiative encourages creativity and problem-solving skills. Teams provide mechanisms for breaking down functional biases created by a strict adherence to structure. The amount of interdepartmental conflict in the organization, the social cohesion among team members, and the frequency and directionality of interdepartmental communication influence team building.
Through shared understanding of the objectives and purposes of the project, as well as the tasks required in the development process, teams can shape the project and influence how work gets done in the organization. Now a day technology continues to change and create new opportunities and threats. Customer requirements and expectations continue to shift and create new demands. Old channels of distribution are becoming obsolete and new channels are opening new opportunities.
Some competitors are falling by the wayside while others are surging to the forefront by making new and unexpected moves to gain advantage. The very structure of industry is changing.
The first step of new product development requires gathering ideas to be evaluated as potential product options. Idea generation is an ongoing process with.
A Sample Essay on New Product Development Process Example.
The new product development process begins with idea generation. Strategic management is all about selling an idea. So as a Strategic manager I have created the new product idea of Solar Based LED TV. New product development process. As the marketing executive of the new merchandise that produces lightweight, easy-to-store bike with safety features that combines the speed of a road bike and the sturdiness of a mountain bike, I believe that the unique features of this product are not adequate determinists of its success.
New Product Planning and development New products are a vital part of a firm’s competitive growth strategy. Leaders of successful firms know that it is not enough to develop new products on . NEW PRODUCT DEVELOPMENT PROCESS PURPOSE: The Telecoms product development process aims to identify and streamline the procedures that take place during the development of a new product. These process activities are critical to achieving time-to-market success with minimal development cost and risk, quality assured at all times and.