MKTG Chapter 11:
Deeloping &
Managing Products
New Product Development Process
1. New Product Strategy
2. Idea Generation
3. Idea Screening
4. Business Analysis
5. Development
6. Test Marketing
7. Commercialization
Idea Generation
Come from both internal & external. Newest-
Consultants
Idea Screening
Point is to eliminate ideas that are inconsistent
with organization's strategy. Includes a concept
test- point is to find if there is demand "Will you
buy? How much are you willing to pay?"
Business Analysis
Calculate demand, cost, sales, and profitability.
Impact of new product? Interaction with our
existing products? Benefit to current customers?
Affect employees?
Development
1. Create a prototype (cost to produce) 2. Sketch
marketing strategy 3. Determine manufacturing
feasibility
Test Marketing
1-2% of the projected market, EXACTLY as you
plan to commercialize
Commercialization
Production, Inventory buildup, Distribution
shipments, Sales force training, Trade
announcements, Customer advertising. Very
