THE STAGES OF NEW PRODUCT DEVELOPMENTAL PROCESS

THE STAGES OF NEW PRODUCT DEVELOPMENTAL PROCESS

Kotler Philips (1999) and C.D. Datong et al (2003) maintained that there are basically eight (8) major stages in new product development process which include the following:

i) Idea Generation: This is a systematic search for new product ideas. The new product development process starts with the search of ideas. These ideas which may come from customers, competitors, company’s sales/ marketing representatives (employees) and dealers of the company’s research and development department, top management, miscellaneous sources of ideas for new product.

ii) Idea Screening: This is a preliminary evaluation involving the elimination of ideas not technically feasible or not consistent with the company’s product lines, objectives and resources.

iii) Concept Development and Testing: This involves the following:

a) Product concept: This is all about; product ideas the consumer will patronage (favour) which offers the most quality performance and that the organization should therefore devote its energy (resources) to making continuous products. A detached version of the new product idea started in meaningful consumer terms.

b) Concept Testing: This involves testing the new product concept (idea), determining the stake as in strong appeal to the consumer, to firm; government and other stakeholders.

iv) Marketing Strategy Development: Designing an initial marketing strategy based on product concept.

v) Business Analysis: A review of sales, profit projections and analysis; for a new product to find out whether these factors satisfy the company’s objectives.

vi) Product Development: A strategy for company’s growth by offering modified or new product to current market segments. Developing the product concept into a physical product in order to ensure that the product idea could be turned into a workable product.

vii) Test Marketing: The sale of the product in a small market will provide information on the suitability of distribution channel; price and promotion plans. It will give indications as to the ultimate sales response in the large market, and more than one test area could be used for finding out the potential impact of alternative marketing plans.

viii) Commercialization: This is the formal launching of the product into the market for sales. This stage will normally follow when they have successfully passed through the market –testing stage, commercializing the product into the market; the product manager is to start managing the product life cycle.