Upto a large extent the idea generation is an ongoing process with contributions from inside and outside the organisation for certain companies. This process of new product development requires gathering ideas to be evaluated as potential product options. Idea generation is the first step of new product development. Process of New Product Development – 8 Main Steps Involved: From Idea Generation to Commercialisation/Launching of the Product Process # 1. They may develop a planned market rollout time. in a single location or a region or national market or international market. Next the company must decide where to launch i.e. The company launching a new product must first decide on introduction timing. This implies commitment of high investments in manufacturing facilities, sales promotion and other marketing efforts in the first year. Introduction of the new product into the market: This can be used before using controlled or standard test marketing if required.

But they take small samples and simulated environments make them less accurate and reliable.

Keep the new product out of competitors view. Simulated test markets overcome some of the disadvantages of standard and controlled test market. The researcher may also ask consumers some questions.ĭ. They invite consumers to a real or lab store where they may buy items and researchers note how many people buy the new product and competing brands.Ĭ. The company shows advertisements and promotions for a variety of products including the new product being tested to a sample of consumers.ī. As in standard test marketing, controlled test marketing allows competitors to get a look at the company’s new product.Ī. Small size of sample may not be representative of their products’ markets or target consumers.ī. Controlled test marketing usually costs less than standard test marketing and takes less time.Ī. Research firms keep controlled panels of stores that have agreed to carry new product for a fee.ī. Test market gives competitors a look at the company’s new product well before it is nationally introduced hence they get time to develop defensive strategies.Ī. Competitors can monitor test market results or even interfere with them by cutting their prices in test cities, increase their promotion or even buy up the product being tested.ĭ. Using standard test marketing the company finds a small number of representative test cities, conducts a full marketing campaign in these cities and use store audits, consumer and distribution surveys and other measures to gauge product performance.ĭrawbacks of standard test marketing are:Ĭ.

New product development process