New pdt development ppt
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The document outlines new product development (NPD) as a comprehensive process that leads to the introduction of new products in the market, emphasizing the importance of understanding customer needs and market dynamics. Key stages of NPD include idea generation, screening, concept testing, and commercialization, with strategies such as acquisition and internal development. Common reasons for NPD failure include lack of uniqueness, poor planning, and misjudgment of market conditions.
New pdt development ppt
- 1. NEW PRODUCT DEVELOPMENT PRESENTED BY, NAVYA JAYAKUMAR P
- 2. TOPICS • MEANING • DEFINITION • FACTORS • PROCESS • STRATEGIES • FAILURE OF NEW PRODUCT • REFERENCE
- 3. MEANING New Product development is a journey. It's the road which leads to the actual product and then the actual product to the market. NPD requires an understanding of customer needs and wants, the competitive environment, and the nature of the market. It is generally used to discuss the complete process of introducing a new product in the market. The creation of products with new or different characteristics that offer new or additional benefits to the customer.
- 4. DEFINITION According to Limpson and Darling, “Product development involves the adding, dropping, and modification of item specifications in the product line for a given period of time, usually one year”.
- 5. FACTORS • Changing customer preferences The changing role of women, growth in the nuclear and stand alone families, increase in education and income levels, and a manifold increase in the electronic media also contributes towards changing customers expectations and preferences. • Technological Changes Technological change is the overall process of invention, innovation and diffusion of technology or processes. To take advantage of the technological changes and remain competitive, the firm has to have a closer relationship with technological institutes, universities and other R&D labs. • Government Policy It can encourage or foster new product development process. for example, a government policy encouraging competition and entrepreneurship can motivate firms to launch new products.
- 6. PROCESS 1. Idea Generation – Collective brainstorming through internal and external sources. 2. Screening of the idea – Condense the number of brainstormed ideas. 3. Concept Testing – Structure an idea into a detailed concept. 4. New Product Strategy – Innovators have clearly defined their goals and objectives for the new product. 5. Business Analysis – Understand the cost and profits of the new product and determining if they meet company objectives. 6. Product Development – Developing the product. 7. Market Testing – Marketing mix is tested through a trial run of the product. 8. Commercialization – Introducing the product to the public.
- 7. STRATEGIES The two new product development strategies are: 1. Acquisition The first one of the new product development strategies is Acquisition. Acquisition means buying a whole company, a patent, or a licence to produce another company’s product. 2. Own new product development efforts. The other strategy refers to the firm’s own new product development efforts. New products developed by the firm can take three forms: i. Revolutionary Product Development Strategy ii. Product Development Diversification Strategy iii. Product Modifications Strategy These forms of new products the firm can develop through its own R&D efforts.
- 8. FAILURE OF NEW PRODUCT • Lack of product uniqueness • Inadequate market planning and research • Poor timing • Product deficiencies • Over estimation of market size • Under estimation of market competition • High production cost • Ineffective promotion
- 9. REFERENCE • Philip Kotler, Kelvin Lane Keller, Abraham Koshy, Mithileshwar Jha, Marketing Management, 13th edition, pearson • www.scribd.com • www.wikipedia.com
- 10. THANK YOU