New Product Development
1. Concept generation and market structure identification: Idea generation: The first stage of new product’s evolution begins with an idea for the product. Hence this stage is also termed as ‘idea generation’.
2. Advertising development: This stage of new product development involves the development of advertising and formulation of the product. This stage typically involves two activities, viz. development of advertising strategy and product formulation.
3. Product formulation and testing: During this stage, the ‘idea-on-the-paper’ is turned into a ‘product-on-hand’. In other words, the idea is converted into a product that can be produced and demonstrated. This stage is also termed as technical development. It is during this period that all developments of the product, from idea to final physical form, take place.
4. Testing the product: In this stage of product testing, the new product manager can check the feasibility and accuracy of product performance. Thus, commercial experiments are necessary to verify earlier business judgments. The objective of this stage is to assess whether the product meets the technical and commercial specifications developed at various levels of concept development for ascertaining product acceptability.
5. Commercialisation and final launch: In this stage, the product is submitted to the market and thus commences its lifecycle. Commercialisation is also the phase where marketing is most active in connection with the new product. This stage is considered to be a critical one for any new product and should therefore be handled carefully.