NEW PRODUCT DEVELOPMENT

What do we mean by new products?

1.Innovative products products which
are really new to the market.
a.Breakthrough products .Eg.ATMs,
Internet, Modems, servers, AIDS vaccine
etc.
a.Platform products Eg. Mobile phone,
body scanning machines, 3Ms Post-it.

2. Replacement products products

which are essentially minor to major
modifications of existing products.
Eg. Tube less tyres, electric cars.
3.Imitative products these are new
products to the company , but are
imitations of products existing in
some other company.

Steps in product development

1. Idea generation
One has to be creative to generate bright
ideas.
Creativity ability to generate different
and original ideas.
Creative thinking Convergent thinking
and Divergent thinking.

Some tips for Creative thinking

1. Be ready to accept some amount
of uncertainty.
2. Incubate. Postpone immediate
evaluation/ conclusive assessment of
situations , objects etc.
3. Be sensitive to problem situation.

4. Develop analogies.
5. Try to look at the opposite of the present
view.
6. Develop a positive, I can do, possibility
thinking frame of mind.
Sources of new ideas in cos.
a. Customers
b. Distribution
c. Employees
d. Competitors
e. Sales team
f. Top management

Idea is vague descriptive thought . Eg.

An alarm clock that wakes one up by
without making sound.
Idea generating techniques
1. Brainstorming
2. Delphi technique
3. Attribute listing
4. Forced relationship
5. Morphological analysis

(2). Idea Screening.

(3). (a) Concept development .
A concept is an elaborate description of
the idea in meaningful terms.
At this stage of concept development ,
the idea is converted into a concept by
developing the morphological
dimensions of the idea with the help of
data collected from various sources as
well as one own intuitive thinking.

Eg. Hence, How will you develop am

alarm clock which wakes you up
without making sound by
vibrating/shaking?

Systematically it is done by exploratory

research, factor analysis and Conjoint
analysis which help to develop the
features of the future product.

(3) (b) Concept testing

Assessing Need gap score - need
level, gap level , Communicability,
believability, perceived value and
purchase intention.

(4).Business Analysis
Estimating Costs, Potential sales
and Profit.

Profit & Loss Statement

(5) Marketing strategy development

(6). Prototype development
Converting consumer attributes
into engineering attributes.using a set methods called
Quality function deployment
(QFD) under House of Quality.

(7). Market testing

a. Sales wave research
b. Simulated test marketing
c. Controlled test marketing
d. Test marketing
Decision issues in test marketing
No. of towns/cities.
Which all town/cities
How long the test
Cost of testing
What Information to be
- collected.

(8). Commercialization
Decide on
Timing
Target Segments
Geographic description
Marketing plan including strategies in
place.

STAGES IN NEW PRODUCT ADOPTION

PROCESS
Categories of new product adopters
1.
2.
3.
4.
5.

Innovators
Early adopters
Early majority
Late majority
Laggards.

Adopter Categorization on the Basis of

Relative Time of Adoption of Innovation