Question

ters undergo to develop new products 6) List the steps market

Answer 1

New product development strategy is nothing but the strategy to launch new product in the market based on product planning and research, customers' views and preferences, etc. in order to do proper planning and allocation of resources for new product development. This strategy is directly influenced by the objectives of marketing department, business unit and the corporation and hence the development process is carried out based on these objectives.

Before a new product development, there is a precise protocol, a statement that should be developed that should include: -

• the target market
• customers' needs, wants, and preferences, and
• about the product, its features and how it will fulfill the customers' needs.

The seven stages of new product development process are: -

• Brainstorming the ideas
• Evaluating the ideas
• evaluating the market
• Analyzing the competitive situation
• Prototype and marketing
• Market testing
• Commercialization

Introducing a new product in the market is done in order to cover the target customer. Small or new firms focus on introducing totally new products rather than making improvement to products in existing categories. The reasons are:-

• To cover the different segment of market
• To cover the maximum segment of market
• To create brand awareness
• To improve customer service
• To fulfill customers' needs
• To gain competitive advantage