9. New-Product Development & Product Life-Cycle Strategies

New Product Development (NPD)

The process of creating & bringing new products to market, either through internal innovation or acquisition.

Crowdsourcing

A method of generating ideas by inviting contributions from a large group of people, especially from the public or online communities.

R-W-W Screening

A framework used during idea screening to evaluate whether a product idea is:

• Real: Is there a genuine need & market?

• Win: Can the product be competitive?

• Worth doing: Is it profitable & aligned with company goals?

Concept testing

Presenting a product concept to target consumers to gauge their reactions & refine the idea before development.

Marketing Strategy Development

Crafting an initial plan that outlines the target market, product positioning, & financial goals for the new product.

Business analysis

Assessing the financial viability of a new product by estimating sales, costs, & profits.

Test marketing

Launching the product in a limited market to evaluate its performance & refine the marketing strategy before full-scale release.

Commercialization

The final stage of NPD where the product is launched into the market, including decisions on timing & geographic rollout.

Customer-Centered Development

An approach that focuses on understanding & solving customer problems throughout the product development process.

Team-Based Development

A collaborative method where cross-functional teams work together to speed up & improve the development process.

Product Life Cycle (PLC)

the stages a product goes through from introduction to decline:

• Introduction: Product is launched; sales grow slowly

• Growth: Rapid market acceptance & increasing profits

• Maturity: Sales peak; competition intensifies

• Decline: Sales & profits fall; product may be phased out