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NEW PRODUCT DEVELOPMENT PROCESS
MARKETING STRATEGY DEVELOPMENT :
Designing an initial marketing strategy for a new
product based on the product concept
Consist 2 parts:
1. Describe the target market’s size, structure
and behavior, the planned product positioning,
sales, 4 P's, market share, and profit goals sought in
the first few year
2. Describes the long-run sales & profit goals and
marketing-mix strategy over time.
BUSINESS ANALYSIS:
A review of the sales, costs and profit
projections for a new product to find out whether
these factors satisfy the company’s objectives
a) Estimating Sales: the company might look at the
sales history of similar products and conduct
surveys of market opinion.
b) Estimating Costs: Cost are estimated by the R&D,
manufacturing, marketing and finance department
PRODUCT DEVELOPMENT:
Develop a physical product to ensure the
product idea can be turned into a workable
product
Physical Prototypes: The R&D department will
develop one or more physical versions of the
product concept.
Its goal is to find a prototype that performs safely
under normal use and conditions, and that can
be produced within the budgeted manufacturing
costs.
