Section 6
New Product Development
By Boundless
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In dynamic markets companies must constantly introduce new products and services to keep up with changing consumer wants and needs.
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A good NPDS can help organize research, prioritize customer needs, and reduce cost overruns, to ensure a smooth development process.
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The success of product-driven companies is directly tied to new product development, which is generated through innovative ideas.
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During screening, the company evaluates whether to devote further resources to the development of a product at various stage gates.
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Concept testing is important for evaluating consumer responses to a product before market introduction.
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The output of the business analysis stage is a prediction about whether the product is likely to be profitable or not if ultimately produced.
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Development involves setting product specifications as well as testing the product with intended customer groups to gauge their reaction.
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Test marketing is the final stage before commercialization, and is where all the elements of the marketing plan are tested.
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Commercialization the process of launching a new product; it may involve heavy promotion and filling the distribution networks with the product.
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Marketers must learn from their own previous failures, and others' failures, to ensure that they are successful for the next product launch.