New Product Development - Essay Example

Idea Screening: Once the ideas are generated, then the ideas are screened for viability and for the feasibility of the ideas. Here all the unattractive ideas and unfeasible ideas are weeded out leaving only the ideas where future action is possible. Concept Development and Testing: Here in this stage the idea is presented to the customers and their views and opinions of the ideas are documented. This eliminates the risk of any losses if the ideas are not accepted by the customers (Kahn). Business Analysis: This stage involves the business and financial analysis of the ideas and here the financial risks and the other business-related analysis are completed.

Prototype Development: Here the idea is developed and the product is developed in the physical form and the basic marketing strategy is developed. Test Marketing: At this stage, the company puts the product up for sale in a few areas to check for the performance under the marketing plan (Jobber). This provides an insight into the company for the effectiveness of the marketing strategy and the demand for the product. Commercialization: The last stage of the new product development stage is the commercialization, where the complete marketing plan is developed and the full production is set into action (Kahn).