New Product Development
Organizations have to develop new services and products. A company must be good at making new products. It also ought to manage them in the face of modifying tastes, competition, and technologies. As a cause to change, the company has to realize that products face restricted life spans and ought to be replaced by newer products. Furthermore, new products may fail. The risks of innovation may be as great as the rewards.
The key to successful innovation is in overall-company effort, solid planning, and an efficient new-product development procedure. The new-product development procedure consists of eight stages: idea screening, idea generation, marketing strategy development, concept development and testing business analysis, test marketing, product development and commercialization. At every stage, a decision ought to be made as to whether the idea should be further developed or discard. The company wants to minimize the opportunity of poor ideas moving forward or good ideas being dropped.
Every product has a life cycle marked by a changing set of problems and chances. The sales of a typical manufacture follow an S-shaped curve build-up of five stages.
These stages include following:
- the product-development stage
- the introduction stage
- the growth stage
- the maturity stage
- and the decline stage
Since the product passes through these stages, the marketing planner has to adjust the organization's plan and be aware of changing difficultly, threats, and chances. The planner has to adjust the firm's marketing mix to these changes and enable to predict when important changes will occur. Managing change is an exact marketing management art and is compulsory for the organization to be successful in the long-term.