05-07-2012, 11:45 AM
Stages in new products development
Stages in new products development.ppt.pptx (Size: 363.6 KB / Downloads: 32)
New Product Development (NPD)
New product development (NDP) is a process which designed to develop, test and consider the viability of products which are new to the market in order to ensure the Growth or survival of the organisation.
Failure for an organisation to change could result in a decline in sales and with competitors racing ahead.
The process of NPD is crucial within an organisation. Products go through the stages of their lifecycle and will eventually have to be replaced .
New product can be used :
New product can be used Increase/defend market share by offering more choice or updating older products
Appeal to new segments and to diversify into new markets
Improve relationship with distributors Maintain the firm’s reputation a leading edge company.
Concept Development and Testing
Concept testing present the consumer with a proposed product and measure attitudes and intention at this early stage of development.
The organisation may have come across what they believe to be a feasible idea, however, the idea needs to be taken to the target audience.
What do they think about the idea? Will it be practical and feasible? Will it offer the benefit that the organisation hopes it will? or have they overlooked certain issues? Note the idea and concept is taken to the target audience not a working prototype at this stage.