Most of the products fail because of unattractive features, exceptional high price, wrong segmentation, positioning, targeting, inappropriate promotional strategies, lack of top management support, lack of relevance in the market etc. Whereas main reasons behind the success of a product include excellent product features, value for money, proper marketing strategies, full support from top management etc.
There are number of stages involved in the development of a new product. These are idea generation, idea Screening, concept development and testing, marketing strategy and financial analysis, product development, test marketing, commercialization. Each of these stages is discussed below.
The entire process of new product development starts from idea generation stage. New ideas might be generated from companys internal employees, customers, suppliers, distributors and even from competitors.
In this stage concept of the chosen idea is developed and it is tested in the sample customers. Any further modification in the product features are done on the basis of the responses from these customers.
Marketing strategies would include strategies on 4 Ps (product, price, place and promotion), segmentation, targeting, positioning and sales. Financial analysis would involve analysis of total cost of production, sales, and distribution. Financial analysis would also involve the analysis of required profit margin based on which the price will be