1. New Product planning and Development
Chapter 7
New Product planning and Development

2. New product strategy
The important question is “in how many ways can a product be new?” and the answer is about 5 different categories:
1. New to the world product
2. New category entries
3. Additions to product lines
4. Product improvements
5. Repositioning

3. New product planning and development process
The basic ideas are created and evaluated. The whole planning process depends on the quality of the idea generation and screening process.
To eliminate ideas for new products that could be profitably marketed by the firm.
To expand viable ideas into full product concepts.
The result is the project proposal which is given to top management for a go or no-go decision.
The idea has been evaluated from the standpoint of engineering, manufacturing, finance, and marketing. If it is satisfied, in the lab, the product is converted into finished good and tested.
Submitting the product candidate for customer approval in order to evaluate and adjust.
This is the launching step in which the firm commits to introducing the product into the marketplace.
Idea generation
Idea screening
Project planning
Product development
Test marketing
commercialization

4. Some important new product decisions and causes of new product failure
Quality level
Customers always consider carefully the level of product quality when making purchase decisions. So, marketers must consider what criteria potential customers use to determine their perceptions of quality
Product features
A product feature is a fact or particular specification about a product. The effective marketers select new product features by determining not only what customers want but also what they need.
Product design
Well-designed products are easy to use as intended and pleasing to the sense.
Product safety
New products must have a reasonable level of safety both an ethical and practical issue.
Causes of new product failure
Many new products with satisfactory potential have failed to make the grade for reasons related to execution and control problems. Such as:
1. No competitive point of difference, unexpected reactions from competitors.
2. Poor position
3. Poor quality
4. Non-delivery of promised benefits
5. Too little marketing support
6. Poor perceived price/quality (value) relationship.
7. Faulty estimates of market potential and other marketing research mistakes…..