List and discuss the major phases of the new-product development process.

Question

What will be an ideal response?

Answer 1

The seven phases of the new-product development process are idea generation, screening, concept testing, business analysis, product development, test marketing, and commercialization. Businesses and other organizations seek product ideas that will help them to achieve their objectives. This activity is idea generation. In the process of screening, the ideas with the greatest potential are selected for further review and analyzed to determine whether or not they match the organization's objectives and resources. In concept testing, a small sample of potential buyers is presented with a product idea through a written or oral description (and perhaps a few drawings) to determine their attitudes and initial buying intentions regarding the product. During the business analysis stage, the product idea is evaluated to determine its potential contribution to the firm's sales, costs, and profits. Product development is the phase in which the organization determines if it is technically feasible to produce the product and if it can be produced at costs low enough to make the final price reasonable. A limited introduction of the product in geographic areas chosen to represent the intended market is called test marketing. During the commercialization phase, plans for full-scale manufacturing and marketing must be refined and settled and budgets for the project prepared.