PM Presentation 08.07.09

Group One 2
Contents:
 Introduction
 Idea Generation
 Idea Screening
 Concept Development and Concept Testing.
 Market Strategy Development
 Business Analysis
 Product Development
 Test Marketing
 Commercialization
 Speeding up New Product development.
Introduction:
A given Company which may be an existing long
running or a new company always needs new product
development according to the changing lifestyle, tastes
& requirements of the consumers. A company has to
be effective in innovating and inventing new products
with which the company can satisfy its consumer’s
expectations. New product development is essential
for every company.
So, How to develop a new product? New Products just
don’t happen like that and also considering the fact
that innovation can also be dangerous.
Let us now consider the systematic process of new

product development.
Idea Generation:
The foremost and important step in new product
development is Idea Generation. As already discussed,
keeping in mind the changing expectations and
requirements of customers new ideas must be
generated. A company in order to find a satisfying idea
must generated maximum possible ideas. From which
the best ones selected leaving the poor ones. Thus
generated New Ideas must always focus on providing
better products than its own existing products and its
competitor’s products to its customers .
There are different sources of generating new Ideas
like:
Employees of the Company who knowledgable
about the company and its consumer foothold in the
market can always come up with innovating and
creative ideas.
From the company’s competitors.
Company’s customers who expect better and
improved products from the company; etc.
Idea Screening:
Idea Screening is that level of the process, where the
Ideas generated are analyzed, discussed upon resulting
in selection of best Ideas and ignoring poor Ideas. The
Ideas are selected considering the factors affecting the
product and its profitability to a company.
Further Surviving Ideas are tested using few processes
like scaling, rating or even survey process in respect to
the target market, Competition, price, distribution,
development time, cost and rate of return etc.
Concept development and testing:
Concept Development
Ideas selected from the above said processes of Idea
generation and Idea screening are identified into
product idea, Product concept and product image
assuming themselves into the initial, intermediate
and potential categories, respectively.
In concept development product concepts are
developed on the basis of the selected Ideas. The
concepts may be based on the target market, the
developing costs or even the customers depending on
their age group, needs or the income level.

Concept Testing:
Thus obtain developed concept will be tested
physically with a group of potential consumers. The
results obtained from these tests are used by the
company to decide upon the best concept for a new
product development strategy.
Market strategy development
Market strategy development is the primary
requirement for introducing the newly developed
product into the market. Marketing strategy is a
statement consisting the detailed information of the
following:
 The Market, its positions, share, size and profit goals set by the
company.
 Next the financial aspects like the product’s ‘going to be price’, its
distribution and budget required for marketing etc.
 Lastly the cores lay in the long run market, profits and its
marketing. If you observe here, It is more of a statistical and
analytical side of marketing
Business Analysis
Once the product concept and marketing strategies are
finalized, the depth of the business on this new product
developed is obtained from Business analysis. We can
consider Business analysis as an extended process of
marketing strategy development.
Business analysis is the reconsideration of the factors
discussed in marketing strategy.
Estimates of rates, costs, profit and pace of product
growth in a given market situation, the costs for
research and development, accounting, finance
department etc.
Even though this is just a review of the already
discussed factors, it is one of the most important
phases of New Product development.
Product Development
Product development is main step in new product
development. So far the product concept or the product
idea existed only in the paper format and descriptions
through Ideas. But in the product development process
their concepts are given physical forms. Various
product concepts are given physical models. These
physical models are tested for their successful
performance to sum it up. The concepts are carefully
developed into physical models by keeping all the
factors of production and financial aspects, forecasting
the company’s main goal as maximum customer
satisfaction.
Test Marketing
Test Marketing is the step where realistic marketing is
introduced in new product development. Test
marketing is just a mock experience of marketing the
product at its final stage, this will enable the company
to find out the potential problems and also gain more
information needed for full and final introduction of
the new product into the actual market. Test marketing
allows the company to test its entire marketing
program for the new product – its positioning strategy,
advertisement, distribution, pricing, branding and
budget levels.
There are four types of test marketing they are:
Standard test marketing
Controlled test marketing
Simulated test marketing
Industrial goods test marketing.
Commercialization
After all the successful steps and satisfying results.
The company can now help itself with
commercialization - that is introduction of the so
developed new product into the market. The important
characteristic of Commercialization is high and
expensive costs. Successful commercialization of a
new product by a company requires investment of a lot
of money in it.
For e.g.: The recent introduction of Apple I phone.
Apple Inc spent millions of dollars on its
commercialization purposes before it actually went on
sale recently.
Thank you all
Cheers!!!

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Group One 2

Let us now consider the systematic process of new

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