The process of new product development is starting from (1) Idea Generation (2) Idea Screening (3) Concept Development and Testing (4) Marketing Strategy Development (5) Business Analysis (6) Product Development (7) Test Marketing (8) Commercialization.
(1) Idea Generation is the first step of product development, which ideas are come from internal sources within the company by formal researching and developing (eg. Collect information from Accounting, Sales force, Marketing & Manufacturing). For external, which ideas can be received from (a) the customer by observational research, Survey Research & experimental research; (b) competitors’ annual report, speeches, advertising and press release; (c) distributors and/or suppliers as they are close to the market, they can contribute products idea and pass along information from end-users’ in order to create a brand new product or improve and modify their existing products.
Organizations cannot be survived by selling only one or few products since product life cycle is not longer enough. Thus, it is necessary to develop new products for gaining market shares and profits by diversify products.
(2) Idea Screening is to spot good ideas and drop poor ones in a short time since product development costs are high. Companies will choose those products which can be delighted to customers in order to yield the profit. Companies have systems for rating and screening ideas which estimate the market size, product price, development time and costs, manufacturing cost and rate of return according to general company criteria. The information data must be accurate, reliable and up-to-date for screening.
This procedure is to evaluate whether the new products are worthy to inves ...