New Product Marketing - 5 stage Process

5 stage of NPD process

What happens during opportunity identification and selection?

• Market opportunities are discovered and assessed based on external trends and internal capabilities.

• The goal is to select ideas that align with the company’s strategy.

What is the focus of concept generation?

Generate a wide variety of product ideas using methods like brainstorming, focus groups, lead users.

It encourages creative thinking before narrowing down.

What is evaluated during Concept/Project Stage?

• Product ideas screened for feasibility

• Tested with potential users

• Assessed for business viability using tools like SWOT

Scoring model

A tool used to rank, prioritise projects leads or opportunities based on pre-defined criteria

What activities are involved in development stage?

• Research and Development

• Marketing strategy creation

• Preparing for production

What is the goal of the launch stage?

• To introduce the product to the market through coordinated marketing, sales, and distribution efforts.

• Includes market testing before full rollout.

How does the Tesla Cybertruck illustrate the 5-step new product development process?

1. Opportunity Identification – Tesla saw a gap for an electric truck combining utility and innovation.

2. Concept Generation – Created a bold design with stainless steel exoskeleton and “Armor Glass.”

3. Concept Evaluation – At the 2019 reveal, the glass unexpectedly shattered during a demo, highlighting development needs.

4. Development – Tesla improved the design and reinforced the glass and structure post-reveal.

5. Launch – Despite setbacks, strong pre-orders and viral marketing led to a 2023 launch.

Why is cross-functional collaboration important in new product development?

It ensures that marketing, R&D, operations, and finance work together, reducing errors, aligning goals, and speeding up development.

What is concept testing and why is it used?

Concept testing gathers feedback from potential customers to gauge interest, clarify product features, and identify potential improvements before development.

What is the purpose of market testing?

To test the product and marketing plan in a controlled environment, reducing risk and helping refine the strategy before full-scale launch.

How do companies evaluate the feasibility of a new product idea?

Through screening tools like;

• SWOT

• Financial projections,

• Risk assessments

• Alignment with market needs and company goals.

What factors influence successful launch?

• Clear product positioning

• Well-executed promotion

• Pricing strategy

• Post-launch monitoring