Ch. 11 - Developing and Managing Products CONTINUED:new product development

I wanted to include this in my blog too because I think it was very interesting to read and it could be useful to aspiring business owners.
There are 7 steps in the New-Product Development Process.

1. New Product Strategy: links the new-product development process with the objectives of the marketing department, the business unit, and the corporation.
2. Idea Generation: This can come from a lot of sources, not only management, includes (customers, employees, distributers, competitors, vendors, research and development, and consultants)
3. Idea Screening: this eliminates ideas that are inconsistent with the organization's new product strategy or are obviously inappropriate for some other reason.
4. Business Analysis: where preliminary figures for demand, cost, sales, and profitability are calculated.
5. Development: the stage in the product development process in which a prototype is developed and a marketing strategy is outlined. This can last a loooooooong time and/or be expensive.
6. Test Marketing: the limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation. This is a difficult task because you have to pick a location or people that best demonstrated the businesses target market. And it could be a huge problem if somehow the media get a hold of the concepts which can lead to competition reacting quickly.

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7. Commercialization: the decision to market a product. Many tasks are involve with this. like ordering production materials, training sales force, and advertising to potential customers.

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