Question

There are seven stages in the new-product development process that businesses must perform in order to ensure a better chance of success in their new product launches. 

(a) Identify (list out) each stage in the 7 new-product development processes in the correct order or sequence. 

(b) Briefly describe what a business organization would often do in the second stage of their new-product development process.

Answer 1

a]

The 7 stages in the new-product development process are :

1. Idea generation
2. Idea screening
3. Concept development and testing
4. Marketing strategy development
5. Product development
6. Test marketing
7. Commercialization

b]

In the second stage of idea screening, a business organization would filter out ideas generated in the first stage. Ideas that do not fit into the overall business strategy, or the marketing mix of the company will be rejected. The ideas which are not rejected are rated on the probability of their success, and a decision is taken whether to pursue the idea further.