NPD OVERVIEW MKT 420/ ME 497 SPRING 13 Prof. Janell Townsend Department of Marketing Michigan State University
The Basic New Product Process Phase 1: Opportunity Identification/Selection Phase 2: Concept Generation Phase 3: Concept/Project Evaluation Phase 4: Development Phase 5: Launch
T r a n s i t i o n R e g i o n The Fuzzy Front End (FFE) • Non-Linear • Non-deterministic • Uncertain Decision Criteria • ‘Darwinian’ Success New Product Development (NPD) • Linear • Deterministic • Certain Decision Criteria • Plan and Execute for Success THE NEW PRODUCT DEVELOPMENT PROCESS [From INOVO]
1. OPPORTUNITY IDENTIFICATION Look for open gaps in the market… … That leverage firm’s strengths Starbucks Disney Google Sources of opportunities? Technological advancements Capability to produce smaller-size, higher-resistant semiconductors Longer battery life in cell phones, laptops… Market needs Healthy food low-fat food, organic products…
Customers associated with a significant current trend. They have the best understanding of the problems faced, and can gain from solutions to these problems. In many cases, have already begun to solve their own problems, or can work with product developers to anticipate the next problem in the future. They provide design requirements and also are early adopters and good at stimulating word-of-mouth.
- Fall '08
- new product development, new product process