New Product Development

1487 WordsFeb 26, 20106 Pages
New Product Planning and development New products are a vital part of a firm’s competitive growth strategy. Leaders of successful firms know that it is not enough to develop new products on sporadic basis. What counts is a climate of a products development that leads to one triumph after another. It is commonplace fro major companies to have 50percent or more of their current sales in products introduced within the last 10 years. Some Additional facts about new products are: • • • • • Many new products are failures. Estimates of new product failures range from 33%90%, depending on industry. New product sales grow far more rapidly than sales of current products, potentially providing a surprisingly large boost to a company’s growth rate;…show more content…
tooling requirements; 5. marketing test plan; 6. financial program survey and 7. estimated release data. Test Marketing Up until mow the product has been a company secret. Now management goes outside the company and submits the product candidate for customers approval. Test marketing is a controlled experiment in a limited geographic area to test the new product or in some cases certain aspects of the marketing strategy, such as packaging or advertising. The main goal of a test market is to evaluate and adjust the general marketing strategy to be used and the appropriate marketing mix. Throughout the test market process, findings are being analyzed and forecasts of volume developed. Upon completion of a successful test market phase, the marketing plan can be finalized and the product prepared for launch. Commercialization This is the launching step in which the firm commits to introducing the product into the marketplace. During this stage, heavy emphasis is placed on the organization structure and management talent needed to implement the marketing strategy. Emphasis is also given to following up on such things as bugs in the design, production costs, quality control, and inventory requirements. Importance of time Over the course of the last five years, companies have placed an increasing emphasis on shortening their products’ time to market. Time to market can be defined as the elapsed time between product definition and product
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