1. STEPS IN DEVELOPMENT OF NEW PRODUCT 1.IDEA GENERATION:- Idea generation is the first important step in The development of a product. It is a systematic and regular search For new product possibilities. 2. SCREANING PRODUCT IDEAS:- At this step, an attempt in made to Identify the best suited product to future activity of entrepreneur. 3. CONCEPT TESTING:- Promising new product ideas are converted Into testable consumer concepts. it determines customers attitudes Before product development.

2. 4. BUSINESS ANALYSIS:- At this stage, an attempt is made to find Out the profitability of the new product ideas from business point Of view. 5. PRODUCT DEVELOPMENT:- At this step, efforts are made to give Practical or physical shape to the product idea. 6. TEST MARKETING:- Under test marketing, the entire product And marketing programme is tried out for the first time on a small Number of well selected potential customers. 7. COMMUNICATION:- Communication refers to introduce the Product into the market.

3. PRODUCT LIFE CYCLE Product life cycle is an attempt to recognize distinct stages in the Sales history of a product. The various states of product life cycle are :- 1.INTRODUCTION :- Introduction of product in the market is Characterized by slow sales growth, higher product prices etc. 2. GROWTH:- Growth stage is featured by quick rise in sales and Maximum profitability.

4. 3. MATURITY:- Maturity stage represents that period in the product Life cycle when sales increase at decreasing rate. 4. DECLINE:- At this stage, there is decline in both sales and profits.