Saturday 8 December 2018

Methods of New Product Development

The company needs special skills in new production development methods. It is associated with the development of new products. That requires creative ideas by its creator or its production. All activities will be undertaken for the development of production activities. Organization has produced more open goods production for innovation.

The regime's production management system is defined as the product of establishing and managing production resources in the production and production of satisfactory results for consumer products.

Overview


Implementation of production management system is not the only responsibility by some people. Which was in production process, but the company's production in each of the companies was important in the management. Loyalty towards employees is to increase the value of the company's product together. In the world, the current products have become the highest on the basis of quality or quantity.

For example, when you develop a new product in the form of a cookie For cookies, actually essential ingredients are almost identical, but different ways of potential processing can be in the form of a product design, eventually there may be procedures or procedures to be made at different wet temperatures.



The following are the methods of new product development should be done by a few companies, among others, namely:

Methods of New Product Development


Many people say that the new product a company requires several stages of introduction on the consumer to be sought after by most consumers in the market. This means that in this case the company requires the analysis of the situation to formulate new products marketing optimally. Assessment of a competitor's goods should also be considered by the company in order for the products it produces in accordance with expectations.

Principles of the course of the latest analysis by organization is based on the SWOT analysis. What is a SWOT and analysis how to design marketing with use the SWOT analysis.

Procedure Steps


Idea generation


The first step in new-product development is idea generation.

New ideas can be generated by:

  • Conducting marketing research to find out the consumers' needs and wants.

  • Inviting suggestions from consumers.

  • Inviting suggestions from employees.

  • Brainstorming suggestions for new-product ideas.

  • Searching in different markets viz., national and international markets for new-product ideas.

  • Getting feedback from agents or dealers about services offer by competitors.

  • Studying the new products of the competitors.


Idea screening


Most companies have a "Idea Committee." This committee studies all the ideas very carefully. They select the good ideas and reject the bad ideas.

Before selecting or rejecting an idea, the following questions are considered or asked:

  • Is it necessary to introduce a new product?

  • Can the existing plant and machinery produce the new product?

  • It Can the existing marketing network sell the new product?

  • When can the new product break even?

If the answers to these questions are positive, then the idea of a new-product development is selected else it is rejected. This step is necessary to avoid product failure.

Concept testing


Concept testing is done after idea screening. It is different from test marketing. In this stage of concept testing, the company finds out:

  • The consumers understand the product idea or not?

  • Is the consumers need the new product or not?

  • Whether the consumers will accept the product or not?

Here, a small group of consumers is select. They are given full information about the new product. Then they are ask what they feel about the new product. They are ask whether they like the new product or not. So, concept testing is done to find out the consumers' reactions towards the new product. If most of the consumers like the product, then business analysis is done.


Business analysis


Business analysis is a very important step in new-product development. Here, a detail business analysis is done. The company finds out whether the new product is commercially profitable or not.

Under business analysis, the company finds out...

  • Whether the new product is commercially profitable or not?

  • What will be the cost of the new product?

  • Is there any demand for the new product?

  • Whether this demand is regular or seasonal?

  • Are there any competitors of the new product?

  • How the total sales of the new product be?

  • What will be the expenses on advertising, sales promotion, etc.?

  • How much profit the new product will earn?



So, the company studies the new product from the business point of view. If the new product is profitable, it will be accept else it will be reject.

Product development


At this stage, the company has decide to introduce the new product in the market. It will take all necessary steps to produce and distribute the new product. The production department will make plans to produce the product. The marketing department will make plans to distribute the product. The finance department will provide the finance for introducing the new product. The advertising department will plan the advertisements for the new product. However, all this is done as a small scale for Test Marketing.

Test marketing


Test marketing means to introduce the new product on a very small scale in a very small market. If the new product is successful in this market, then it is introduce on a large scale. However, if the product fails in the test market, then the company finds out the reasons for its failure. It makes necessary changes in the new product and introduces it again in a small market. If the new product fails again the company will reject it.

Test marketing reduces the risk of large-scale marketing. It is a safety device and is very time-consuming. It must be done especially for costly products.


Commercialization


If the test marketing is successful, then the company introduces the new product on a large scale, say all over the country. The company makes a large investment in the new product. It produces and distributes the new product on a huge scale. It advertises the new product on the mass media like TV, Radio, Newspapers and Magazines, etc.

Review of market performance


The company must review the marketing performance of the new product. It must answer the following questions:

  • Is the new product accept by the consumers?

  • Is the demand, sales and profits high?

  • The consumers satisfy with the after-sales-service?

  • Is the middlemen happy with their commission?

  • Are the marketing staffs happy with their income from the new product?

  • Is the Marketing manager changing the marketing mix according to the changes in the environment?

  • Are the competitors introducing a similar new product in the market?

The company must continuously monitor the performance of the new product. They must make necessary changes in their marketing plans and strategies else the product will fail.

All the above reviews can be found in the following topics:

SWOT Analysis Framework


The SWOT analysis is trust by major companies to assess how big the new company develops its products can get great sympathy from consumers. This analysis consists of the following elements:

  • The letter S is define as the usual Strength use by companies to assess the strength of the company in terms of the company's own internal such as can be exemplify in the number of employees with adequate competence a skill employee.

  • The letter W is define as Weakness that can be use by the company to assess the company's weaknesses in terms of its internal. This item can be exemplified in the lack of existing machinery devices within the company so as to control production.

  • The letter O refers to a commonly understood Opportunity with those new products business opportunity in terms of external companies. These items can be examine such as in the example yet of the existence of other companies that cultivate new products similar to your company.

  • The letter T is define as a Treats or obstacles in marketing new products in terms of

New Product Marketing Company


New product marketing in a company consists of several stages. Well, a step that could serve as the method of development of new products on the market include:

  • Stages of the analysis of the situation of consumer segmentation to do

  • To do the introduction of the product on the consumer in the form of promotion

  • Control the market price of the product with a new product that is lower compare to other companies (if there are other companies that produce similar goods)

Well, the study of this new product development method if it is associate with the analysis of the situation of the game and maybe a glimpse will look different with the methods already channel by several companies. The new product development method is not actually much different from the production method. Which is usually done by the company. That's the way is on the way of processing and how the end product is design.

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