5Explain major steps in the new product development processAdvise Proton on how

5explain major steps in the new product development

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5.Explain major steps in the new product development process.Advise Proton on how it can go about generating new ideas to introduce a new car model.
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A company must carry out strong new product planning.Figure below shows eight major types in this process. Idea Generation New product development starts with idea generation which is the systhematic search for new product ideas.A company typically generates hundreds even thousand ideas to find few good ones.Major sources of new-product ideas include internal sources and external sources such as customers,competitors,distributors and suppliers and etc.Using internal sources,the company can find new ideas through formal R&D.A company can pick the brains of its own people such as engineers,scientist and others.Besides that,companies can also obtain good new- product ideas from any of a number of external sources.For examples,distributors and suppliers can contributes ideas.More broadly,companies are now developing crowdsourcing or open –innovation new-product idea programs.Crowdsourcing is where the company inviting broad communities of people including customers,employees,independent,scientists,researchers and even public into the new-product innovation process. Idea screening The purpose is to reduce the large number of ideas. This helps spot good ideas and drop poor ones as soon as possible.Product development cost rises greatly in later stages.So the companies wants to proceed with the products ideas that will turn into profitable products only. Concept Development and Testing An attractive idea must be developed into a product concept.It is important to distinguish between a product idea,product concept and product image.A product concept is a detailed versions of the idea stated in meaningful consumer terms.Concept testing calls for testing new –product concept with groups of target customers.The concepts may be presented to consumers symbolically or physically. Marketing Strategy Development The marketers design an initial marketing strategy for introducing the product.The marketing strategy statement consist of three parts.The first part decribes the target market which includes planned value proposition,the sales,market share and profit goals for the first new years.The second part outlines the product’s planned price,distribution,and marketing budget for the first year and the third parts describes the planned long-run sales,profit goals and marketing mix strategy. Business Analysis
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Once management has decide on its product concept and marketing strategy,it can evaluate the business attractiveness of the proposal.Business analysis involves a review of the sales,costs,and profit projections for a new product whether they satisfy the company’s objectives.If they do,the product can proceed to product development. Product Development Here,R&D or engineering develops the product concept into a physical product.This steps calls for a huge jump in investment.The R&D department will develop and test one or more pyshical versions of the product concept.Marketers often involve actual customers in product testing.
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