new product development (npd) process

8/11/2019 New Product Development (NPD) Process

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New Product Development(NPD)


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The 4 Elements of The Marketing Mix

Product Price Place Promotion

Marketing Mix


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Defining Product

Anything that you can sell


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The 8-Stage New ProductDevelopment (NPD) Process


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1. Idea Generation & 2. Idea Screening

Generation: Firms are always on the look-outScreening:

Fit with manufacturing anddistribution expertiseFeasibility


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3. Concept Screening

Prototype or storyboardFocus group: Would you be interestedin a service that . . .Approximation of willingness to pay


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4. Marketing Strategy Development and 5.Business Analysis

Marketing strategy:Developing credible marketing planswith positioning, target andMarketing Mix

Business analysis:Is there a high chance of a goodpayoff?


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6. Product Development

E.g. battery life in iPod


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7. Market Testing

Some firms (fashion goods) dont test themarket: Put it out there, see if people buy it

(the costs of this must be small)= Market test by roll out Simulated test market (dummy store) newproduct is mixed in with familiarsTest markets: Several cities let us tweak theMarketing Mix but rivals may attemptdisruption


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8. Possible roll -out strategies during commercialization

By geographyBy market sizeBy customer type(business/consumer/government)By channel of distribution (Rx/OTC)By use (special occasion/every day)By benefit sought


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Product ManagerWhat Does A ProductManager Actually Do?


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Product Management is a strategic and business-oriented role ,focused on delivering solutions to market needs.

Product Managers...

Identify profitable opportunities that meet market needs Launch products into the market Oversee products already in themarket

Wind down products that no longer meet market needs


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Communicates with customers & prospective customers

Conducts usability tests

Surveys

Keeps an ongoing record of compliments/complaints

Actually uses the product regularly


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Research, research, researchIs aware of, and understands, the competition...

... but is not just slavishly copying their feature sets


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Creates Relevant, UsableDocumentation

BRD: Business Requirements Document - Identifiesbusiness problems, solutionsMRD: Market Requirements Document - Functional,non-functional requirementsPRD: Product Requirements Document - Featuredetails, user interface, flow

FSD: Functional Specifications Document -

Engineers, screen by screenNote: Not every company uses these acronyms--ordocs--in the same way!


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Your job is to meet market demands and actuallymake it to market

But understand the importance of not falling behindthe curve

Timing is crucial

Realize that pioneering doesnt always pay


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Face to face

Email

Blog

TelephoneSocial networks

Clear, not jargon

Concise, not convoluted

Confident, not weasel words

CourteousCompletely understands theissue

The Means... The 5-C Method...


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Sales

Marketing Communications

Engineering

Design

Customer ServiceQA

Operations


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Manages the brand

Generates sales leads

Responsible for the profit & loss of the product

Brings new products to life... maximizes profits in existing

products... winds down unsuccessful productsChampions the product, internally and externally


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How To Be A Good Product Manager:http://www.goodproductmanager.com Pragmatic Marketing:http://www.pragmaticmarketing.com

All Top Product Management:http://product-management.alltop.com The Cranky Product Manager:http://crankypm.com On Product Management:http://onproductmanagement.wordpress.com
http://www.goodproductmanager.com/http://www.goodproductmanager.com/http://www.pragmaticmarketing.com/http://www.pragmaticmarketing.com/http://product-management.alltop.com/http://product-management.alltop.com/http://blog.pdma.org/http://blog.pdma.org/http://onproductmanagement.wordpress.com/http://onproductmanagement.wordpress.com/http://onproductmanagement.wordpress.com/http://blog.pdma.org/http://product-management.alltop.com/http://product-management.alltop.com/http://product-management.alltop.com/http://www.pragmaticmarketing.com/http://www.goodproductmanager.com/


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new product development (npd) process

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