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VERSLAS: TEORIJA IR PRAKTIKA BUSINESS: THEORY AND PRACTICE ISSN 1648-0627 print/ ISSN 1822-4202 online 2012 13(4): 365-374 doi:3846/btp.38 MARKETING...

For this assignment, develop a table in wchich you include the following:

  • Explain the steps and the main task that need to be completed in the new product development process.
  • Explain why these steps are important?
  • Describe the challenges that are presented in each step?

In addition to the table, include an introduction, summary and conclusion.

Support your paper with a minimum of three (3) peer reviewed articles published in the last five years. In addition to these specified resources, other appropriate scholarly resources, including older articles, may be included.

Length: 3-5 pages not including title page and references

VERSLAS: TEORIJA IR PRAKTIKA BUSINESS: THEORY AND PRACTICE ISSN 1648-0627 print/ ISSN 1822-4202 online 2012 13(4): 365-374 doi: 10.3846/btp.2012.38 MARKETING STRATEGY FORMULATION FOR INNOVATIVE PRODUCT DEVELOPMENT PROCESS Vaida Zemlickiene^ Dimitrios Ioannis Maditinos^ ' Vilnius Gediminas Technical University, Saulétekio al 11, LT-10223 Vilnius, Lithuania ^ Kavala Institute of Technology, Agios Loukas 654 04, Kavala, Greece E-mails: '[email protected] (corresponding author); ^[email protected] Received 29 June 2012; accepted 14 September 2012 Abstract. The scientific literature widely considers the new product development (NPD) process. Innovation process influencing NPD process brings for the product an exceptional value which stimulates market demand of these products. However to create a successful new product is not easy. Scholars of management, politicians and economists acknowledge the advantages of new products and market power, but the development of these products is a problematic and long-term process that requires con- siderable time and financial costs, which often does not receive the return. Scholars state that problems are related to marketing. Based on these research results, the article concentrates on the marketing strategy formulation for a NPD process. The aim of this study is to gather, research and generalize recent scientific literature in order to provide conclusions, related to the marketing strategy formulation for the NPD. Implementing the aim of this study, most of the chaos was caused by fact that NPD process, innovation process and the research commercialization process are interrelated, and problem-solving has particular features in common. In order to clarify the relationship between these processes, a comparison of these processes and definitions was carried out. In analysis of NPD process, the limits of research were set - the process was analysed from the initial product design phase and was completed with the product introduction to the market. Keywords: marketing strategy formulation, innovative product, development process. JEL Classification: D800, 0310 MARKETINGO STRATEGIJOS FORMAVIMAS INOVATYVAUS PRODUKTO KÜRIMO PROCESUI Vaida Zemlickiené^ Dimitrios Ioannis Maditinos^ ' Vilniaus Gedimino technikos universitetas, Saulétekio al 11, LT-10223 Vilnius, Lietuva ^ Kavalos technologijos institutas. Agios Loukas 654 04, Kavala, Graikija El pastas: '[email protected]; ^[email protected] ¡teikta 2012-06-29; priimta 2012-09-14 Santrauka. Mokslinéje literatûroje placiai nagrinéjamas naujo produkto kûrimo (NPK) procesas. Inovacinis procesas, darydamas )tak^ NPK procesui, suteikia iSskirtinç vertç produktui, kuri skatina áiij produktij paklaus^ rinkoje. Taciau sukurti sékmingu nauj| produkt^ néra paprasta. Vadybos moksio atstovai, politikai ir ekonomistai pripazjsta naujq inovatyviq produktij pranaSum^ ir gali^ rinkoje, taciau siq produktij kûrimas - ilgalaikis ir problemiäkas procesas, sunaudojantis daug laiko ir finansiniq s^audq. http://www. btp. vgtu. It/en
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366 V. Zemlickiene, D. L Maditinos. Marketing strategy formulation for innovative product development process kurios daznai nesulaukia gr^zos. Mokslininkai teigia, kad problemos daugiausia susijusios su marketingu. Remiantis äiij mokslinii} tyrimi} rezultatais, straipsnyje buvo susitelkta j mokshnius tyrimus, skirtus markeiingui, odentuotam j NPK procès^. Sio tyrimo tikslas - surinkti, iSnagrinèti ir apibendrinti naujausi? mokslinç literature siekiant pateikti iSvadas, susijusias su marketingo strategijos formavimu inovatyviam produktui kurti. Stengiantis ¡gyvendinti äio darbo tiksl^, nemazai painiavos sukélé faktas, kad NPK procesas yra susipynçs ir su mokslinii} tyrimi} komercializavimu, ir su inovaciniu procesu, o sprendziamos problemos turi bendri} pozymii}. Stengiantis paaiSkinti sii} procès^ tarpusavio santyk}, procesai buvo pdyginti su s^vokomis. Analizuojant NPK procès^, buvo nustatytos mokslinio tyrimo ribos, apimancios procès^ nuo koncepcijos analizés iki produkto iäleidimo j rink^. Reikjminiai zodziai: marketingo strategijos formavimas, inovatyvus produktas, kùrimo procesas. 1. Introduction New product development (NPD) is decisive for the prosperity and success of any company (Woodside 2005; Munksgaard, Freytag 2011). Through development and the introduction of new products, new possibüities and markets can be reached or created. Innovative input from customers and markets are often pointed out as significant input which provides a solid foundation for successful pro- duct development (Munksgaard, Freytag 2011). To create a successful new product is not easy. Despite the advantages of new products and market power, the development of these products is a problematic and long- term process that requires considerable time and financial costs, which often does not receive the return, bringing heavy losses to companies. Studies have shown that 46% of their resources, companies devote to NPD and introduction into the market, is wasted on unsuccessful product devel- opment projects (Cooper 2006). Also, it has been stated that over 60% of all NPD efforts are stopped before they are commercialized, and 40% of the remaining products are withdrawn from the market (Allen 2003). However, Hopkins has summarized R. G. Coopers and other authors' researches and presented reasons for new products' faü- ures: 55% of the surveyed companies have stated that prob- lems are related to marketing (Allen 2003). Based on these research results, the article concentrates on the marketing strategy formulation in a NPD process. A well-developed marketing competency includes proactive consideration of the customer in the development process; it helps to guide technical specifications, determine appropriate market seg- ments, establish cost targets to meet pricing objectives, and identify partners that will play a critical role in the value delivery process. In other words, it brings the voice of the customer into the firm. Scientific research previously has proved marketing solutions importance in the NPD process. Prior research of H. Ernst etal {2010) has identified the integration of marke- ting with research and development (R&D) as a key success factor for new product development (NPD). An effective connection between marketing and design activities will be a trigger product innovation (Gupta, Wüemon 1990; Sherman et al 2000). More importantly, numerous enter- prises admit on the concept that "product design should lead marketing to meet market requirements", and "firms sell both products and designs" (Beckman, Barry 2008). A good design not only can help an enterprise achieve profits, but also it offers consumers product values associated with enterprise image (Olins 1990; Hsu 2011). To contribaite to the research on marketing decisions in NPD process, it would be appropriate to analyse the latest research in this field and make generalizations. In order to achieve the first objective, it is necessary to review NPD process models and the attitudes associated with this pro- cess and answer the questions: (1) What is the relationship between the NPD, commercialization and innovation pro- cesses? (2) Could the sources associated with the commer- cialization anc the innovation processes be included in the list of literature for analysis of the marketing in innovative NPD process? 2. Relationship between new product development, commercialization and innovation processes New product development process. It is important to define the concept of the process and limits in the analysis of the processes taking place in a new innovative product development process. After analysis of the literature related to the new innovative product development process it became clear that the NPD process, innovation process and the research commercialization process are interrelated, and problem-solving has features in common. Much chaos is caused by a situation like this while analysing this process. For this reason, it is necessary to review the scientific literature in order to bring clarity to define the limits of the process which will address issues of marketing strategy formulation and research proposals. To achieve this goal the most appropriate thing is to compare the NPD, innovation and commercialization processes with scientific reseaidi concepts and processes. According to Ph. Kotier (2003) NPD is: the creation of original products, existing product improvement or modifi- cation and creation of new brands, with the help of compa- ny's scientific research department's efforts. D. Dougherty (1992) argues that NPD is a process of linking technolo- gy and customfrs, and it is (Zhang 2009) the source of a
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Running head: NEW PRODUCT DEVELOPMENT PROCESS New Product Development Process
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Institution 1 NEW PRODUCT DEVELOPMENT PROCESS 2 New Product Development Process
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