11/24/2015

StagesProcessStepsofNewProductDevelopment

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Post:GauravAkrani.
Date:2/14/201204:21:00AMIST.
Comments(6)
Label:ProductionPlanning.

StagesProcessStepsofNewProductDevelopment
The stages or process or steps involved in a newproduct development are
depictedintheimagegivenbelow.Clickonittogetazoomedpreview.

PrinciplesofGoodLayoutforan
AdvertisementCopy

WorldsTop10MostPoisonous
VenomousDeadliestSnakes

BasicAssumptionsofLawof
Demand

BalayamNailRubbingExercise
CuresAlopecia,HairLoss,Bald

LimitationsofPlanningin
ManagementDisadvantages

WhatisCreditCard?Meaning
DefinitionSizeAnatomyGlossary

ProportionalReserveSystemof
NoteIssueExplained

DifferenceBetweenPrimaryand
SecondaryData
TopInventionsandDiscoveries
byScientistsAtoZListScience
HowtoStartaBusiness?

FINANCE

HowtoImproveHuman
Relations?

WhatisFinance?Meaning
DefinitionFeaturesofFinance

HowToPrepareForSuccessful
JobInterviews?BestInterviewTips

WhatisFinancialPlanning?
MeaningTypesofFinancialPlans

HowToSummarizePassage?
SummarizationSkillsTechniques

WhatisFinancialManagement?
MeaningDefinitionScopeArticles

BasicPrinciplesofInsurance
ExamplesofInsurancePrinciples

WhatisCorporateFinance?
MeaningWhatitIncludes?

IndianMoneyMarketFeatures,
DrawbacksandRecentReforms
ConceptofMarketingResearch
(MR)MarketingResearchProcess

BANKING
ImagecreditsMoonRodriguez.
The eight stages or process or steps involved in the development of a new
productarelistedandalsohyperlinkedasfollows:
1.Ideageneration.
2.Ideascreening.
3.Concepttesting.
4.Businessanalysis.
5.Productdevelopment.
6.Testmarketing.
7.Commercialization.

http://kalyancity.blogspot.in/2012/02/stagesprocessstepsofnewproduct.html

WhatisaBank?Introduction,
DefinitionandFeaturesofBank

MANAGEMENT

DifferentTypesofBanksWhat
areVariousKindsofBanks?

ManagementFunctionsAnd
Process,ManagementThought

CommercialBanksDefinitions,
PrimarySecondaryFunctions

PlanningFirstPrimaryImportant
FunctionOfManagement

BalanceSheetofCommercial
BankLiabilitiesandAssets

ManagementByObjectives
(MBO)PeterDruckerMBO

HowtoOpenBankAccount?7
StepsToOpenBankAccount

DecisionMakingProcessIn
ManagementProblemSolving

WhataretheAdvantagesof
OpeningBankAccount?

Authority,Responsibilityand
AccountabilityInManagement

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11/24/2015

StagesProcessStepsofNewProductDevelopment
SavingAccountBankMeaning,
FeaturesandAdvantagesofIt

PrincipleofDelegationof
AuthorityImportanceofDelegation

Nowlet'sdiscusseachstageintheprocessofanewproductdevelopment.

FixedDepositAccountofBank
Meaning,Features,Advantages

OrganisationOrganizational
StructureOrganisationalChart

1.Ideageneration

WhatisCurrentBankAccount?
ItsFeaturesandAdvantages

DecentralisationAdvantages
andLimitationsofDecentralization

Thefirststepinnewproductdevelopmentisideageneration.

RecurringDepositAccountIn
BankMeaningandFeatures

ManagerialLeadershipLeader
QualitiesLeadershipTheories

WhatisaCheque?Definition
KindsandTypesofCheques

HumanResourceManagement
HumanResourceDevelopment

WhatareFeaturesofCheques?
MainCharacteristicsofChecks

MotivationMotivationalFactors
IncentivesTheoriesofMotivation

WhatisCrossingofCheque?
DifferentTypesofCheckCrossing

Maslow'sHierarchyofNeeds
TheTheoryofHumanMotivation

AutomatedTellerMachine(ATM)
TheAdvantagesofATMMachine

FrederickHerzberg'sTwoFactor
TheoryMotivationHygiene
Factors

8.Reviewofmarketperformance.

Newideascanbegeneratedby:
Conductingmarketingresearchtofindouttheconsumers'needsand
wants.
Invitingsuggestionsfromconsumers.
Invitingsuggestionsfromemployees.
Brainstormingsuggestionsfornewproductideas.
Searchingindifferentmarketsviz.,nationalandinternationalmarketsfor
newproductideas.
Gettingfeedbackfromagentsordealersaboutservicesofferedby
competitors.
Studyingthenewproductsofthecompetitors.

2.Ideascreening
Most companies have a "Idea Committee." This committee studies all the

EBankingOnlineBanking
MainAdvantagesofEBanking
PrinciplesofGoodLending
EveryBankerFollowsLoans
DifferentFormsofAdvancesby
CommercialBanksLoanTypes
DutiesandResponsibilitiesof
ComputerOperatorinBank

ideasverycarefully.Theyselectthegoodideasandrejectthebadideas.

NationalisationofBanksinIndia
IntroductionObjectivesDemerits

Beforeselectingorrejectinganidea,thefollowingquestionsareconsidered

NarasimhamCommitteeReportI
1991II1998Recommendations

orasked:
1.Isitnecessarytointroduceanewproduct?
2.Cantheexistingplantandmachineryproducethenewproduct?

NewEconomicReformsofthe
BankingSectorInIndiaBrief

DouglasMcGregor'sTheoryX
andTheoryYEmployee
Motivation
DavidMcClelland'sAchievement
Motivation,ManifestNeedTheory
MarketingMixand4P'sofThe
MarketingManagementArticle
WhatisMarketSegmentation?
ImportanceInModernMarketing
5m'sofadvertisingand
advantagesofadvertising
QualityControlTotalQuality
ManagementTQMQualityCircles

FunctionsofReserveBankof
India(RBI)CreditPolicyofRBI

3.Cantheexistingmarketingnetworksellthenewproduct?

NEWCOMMENTS

4.Whencanthenewproductbreakeven?
Iftheanswerstothesequestionsarepositive,thentheideaofanewproduct

CATEGORY

development is selected else it is rejected. This step is necessary to avoid

productfailure.

AdministrativeLaw

thankusomuch
Greatarticle.Thankyouso
much!Helpedmealot...

Advertising

3.Concepttesting

Banking

Concepttestingisdoneafterideascreening.Itisdifferentfromtestmarketing.

BusinessDevelopment

Inthisstageofconcepttesting,thecompanyfindsout:

CommunicationSkills
DistinguishBetween

Whethertheconsumersunderstandtheproductideaornot?

Economics

Whethertheconsumersneedthenewproductornot?

Education

Whethertheconsumerswillaccepttheproductornot?

Finance

Here,asmallgroupofconsumersisselected.Theyaregivenfullinformation

IndustrialPsychology

about the new product. Then they are asked what they feel about the new

KalyanCity

product.Theyareaskedwhethertheylikethenewproductornot.So,concept

Management

testingisdonetofindouttheconsumers'reactionstowardsthenewproduct.If
mostoftheconsumersliketheproduct,thenbusinessanalysisisdone.

MarketingResearch
Photos

4.Businessanalysis

ProductionPlanning
Snakes

Businessanalysisisaveryimportantstepinnewproductdevelopment.Here,
adetailedbusinessanalysisisdone.Thecompanyfindsoutwhetherthenew
productiscommerciallyprofitableornot.

http://kalyancity.blogspot.in/2012/02/stagesprocessstepsofnewproduct.html

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11/24/2015

StagesProcessStepsofNewProductDevelopment

Underbusinessanalysis,thecompanyfindsout...
1.Whetherthenewproductiscommerciallyprofitableornot?
2.Whatwillbethecostofthenewproduct?
3.Isthereanydemandforthenewproduct?
4.Whetherthisdemandisregularorseasonal?
5.Arethereanycompetitorsofthenewproduct?
6.Howthetotalsalesofthenewproductbe?
7.Whatwillbetheexpensesonadvertising,salespromotion,etc.?
8.Howmuchprofitthenewproductwillearn?
So,thecompanystudiesthenewproductfromthebusinesspointofview.If
thenewproductisprofitable,itwillbeacceptedelseitwillberejected.

5.Productdevelopment
At this stage, the company has decided to introduce the new product in the
market. It will take all necessary steps to produce and distribute the new
product.Theproductiondepartmentwillmakeplanstoproducetheproduct.
The marketing department will make plans to distribute the product. The
finance department will provide the finance for introducing the new product.
Theadvertisingdepartmentwillplantheadvertisementsforthenewproduct.
However,allthisisdoneasasmallscaleforTestMarketing.

6.Testmarketing
Testmarketingmeanstointroducethenewproductonaverysmallscaleina
very small market. If the new product is successful in this market, then it is
introduced on a large scale. However, if the product fails in the test market,
then the company finds out the reasons for its failure. It makes necessary
changesinthenewproductandintroducesitagaininasmallmarket.Ifthe
newproductfailsagainthecompanywillrejectit.
Testmarketingreducestheriskoflargescalemarketing.Itisasafetydevice.It
isverytimeconsuming.Itmustbedoneespeciallyforcostlyproducts.

7.Commercialization
If the test marketing is successful, then the company introduces the new
productonalargescale,sayalloverthecountry.Thecompanymakesalarge
investmentinthenewproduct.Itproducesanddistributesthenewproducton
ahugescale.ItadvertisesthenewproductonthemassmedialikeTV,Radio,
NewspapersandMagazines,etc.

8.Reviewofmarketperformance
Thecompanymustreviewthemarketingperformanceofthenewproduct.
Itmustanswerthefollowingquestions:
1.Isthenewproductacceptedbytheconsumers?
2.Arethedemand,salesandprofitshigh?
3.Aretheconsumerssatisfiedwiththeaftersalesservice?
4.Arethemiddlemenhappywiththeircommission?
5.Arethemarketingstaffshappywiththeirincomefromthenewproduct?
6.IstheMarketingmanagerchangingthemarketingmixaccordingtothe
changesintheenvironment?

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StagesProcessStepsofNewProductDevelopment

7.Arethecompetitorsintroducingasimilarnewproductinthemarket?
Thecompanymustcontinuouslymonitortheperformanceofthenewproduct.
Theymustmakenecessarychangesintheirmarketingplansandstrategies
elsetheproductwillfail.

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6Comments:
Anonymoussaid...
April11,2013at9:33PM

Likethisarticlebcauseitexplainsbetterthestepsofnewproduct
development

VIJAYKAMBOJsaid...
April16,2013at10:36PM

Thanks,forsuchvaluableinformation

Anonymoussaid...
October2,2013at4:32PM

Thankyousoverymuch,youhaverealymademyassignmenteasy,
thankyou

Anonymoussaid...
November26,2013at12:17PM

thearticleisverysimpletobeunderstoodevenbythosestudentswhoare
notspecializinginmarketing,thankssoomuch

AmolMuleysaid...
December26,2013at1:58PM

Thearticleisveryuseful.Itgivesveryimportantinformationaboutnew
productdevelopmentinverysimpleandunderstandablelanguage.Thank
yousomuch.AmolMuleypune.

Anonymoussaid...
January31,2014at9:44PM

Needhelpwithmyassignmentwewhereaskedtodevelopanewproduct
andfollowthe8stepsinproductdevelopmentprocess

http://kalyancity.blogspot.in/2012/02/stagesprocessstepsofnewproduct.html

4/5

11/24/2015

StagesProcessStepsofNewProductDevelopment

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