MKTG Chapter 11:Deeloping &Managing ProductsNew Product Development Process1. New Product Strategy2. Idea Generation3. Idea Screening4. Business Analysis5. Development6. Test Marketing7. CommercializationIdea GenerationCome from both internal & external. Newest-ConsultantsIdea ScreeningPoint is to eliminate ideas that are inconsistentwith organization's strategy. Includes a concepttest- point is to find if there is demand "Will youbuy? How much are you willing to pay?"Business AnalysisCalculate demand, cost, sales, and profitability.Impact of new product? Interaction with ourexisting products? Benefit to current customers?Affect employees?Development1. Create a prototype (cost to produce) 2. Sketchmarketing strategy 3. Determine manufacturingfeasibilityTest Marketing
