Page 31 - PRODUCT

2.3: NEW PRODUCT DEVELOPMENT PROCESS

IDEA GENERATION :

Search for new-product ideas that can full fill

needs and want of the customer
Has to generate many ideas to find a few good

ones.
New-product ideas can come from interacting

with various groups & from using creativity-
generating techniques

Sources: inside & outside (customers, scientists,

competitors, employees, channel members & top
management)

IDEA SCREENING:

The purpose of screening is to drop poor ideas
as early as possible

Proceed with product ideas that will turn into
profitable products.

The company must avoid 2 types of errors :

DROP-error: the company drop a good idea
GO-error: the company choose a poor idea

CONCEPT DEVELOPMENT &TESTING:

Attractive ideas must be refined into testable
product concepts.

Product concept: An elaborated version of the
idea

Concept testing: Involves presenting the
product concept to target consumers and

getting their reactions

Concept testing entails presenting consumers
with an elaborated version of the concept