MKTG 630 - Unit 3: New Product Development Process Report

This report provides a comprehensive overview of the new product development process, detailing the stages from idea generation to commercialization. It begins with an introduction to new product development, emphasizing stages like idea generation, screening, concept development, and testing. The report then delves into marketing strategy development, including product naming and advertising slogans. It explores product attributes and benefits, followed by business analysis and prototype development. Test marketing and commercialization are also discussed, with a money manager application serving as a case study. The report references key academic sources to support its analysis and concludes with a summary of the findings, highlighting the importance of a structured approach to new product development for organizational success. The assignment covers various aspects such as idea generation, concept development, marketing strategy, product attributes, business analysis, prototype development, test marketing, and commercialization.

New Product
Development
Process

Introduction
 New product development refers to the
process of bringing the idea of a new
product to the market.
 New product development includes the
following stages- idea generation,
research, planning, prototyping and
launching the same in the market and
also includes sourcing and costing
(Baxter, 2018).

Idea generation
Idea generation includes:
 An innovative and creative process
 Generation of a new non-existent idea
 Solving the existing problems through a
new approach (Bessant & Francis,
1997).

Idea screening
 Evaluation of different ideas for
selection of one
 Selection of that idea is done which is
most relevant for the company
(Bhander, Hauschild & McAloone, 2003).
 A good idea results in a successful new
product development process

Concept development and testing
The concept development and testing
includes 2 main stages-
 Presentation and description of the idea
to the customers such that they can
understand the purpose for the same
(Edgett, 1996).
 The next step includes introducing a
product prototype in order to understand
their reactions to the new products.

Marketing strategy development
Marketing strategy development includes-
 Providing a direction towards
promotional activities
 Implementation of initiatives after
conducting proper research of the
customers

Product Name
The stage of selection of the product
name includes-
 Selection of an appropriate name for the
product such that the customers can
understand about the product by its
name easily
 It requires proper planning because any
name cannot be selected a relevant
name needs to be selected.

Advertising Slogan or Tag Line
The advertising slogan or tag line
includes-
 Attracting the attention of the
customers towards the distinctive
product features
 Includes short phrases for the purpose
of advertising the product
 It is an important part of branding

Product Attributes
Product attributes includes-
 Highlighting the characteristics of the
products and services offered by the
company
 The product attributes affect the
customers decision making

Product Benefits
Product benefit includes-
 Some value addition for the customers
to gain a competitive edge over the
competitors
 To ensure customer satisfaction

Business analysis
Business analysis includes-
 Identification of different needs and
problems of businesses
 Providing alternatives or solutions to
overcome those identified problems and
meeting the needs (Van Kleef, Van Trijp
& Luning, 2005).

Prototype development
Prototype development includes-
 Prototype is developed for limited
number of target customers before
launching into the actual market
(Ronkainen, 1985).
 It will have all the features as the actual
product