Question

Describe and discuss the new product development process and why understanding the diffusion  process is critical to new products development.

Answer 1

New product development is the description of the process that takes out product from imagination or conception in to real world.In NPD major process is to find out the opportunity that is present in the market and grab the opportunity.

Steps in NPD are as follows:

Idea generation :

NPD starts with idea generation, company may get hundreds of idea it might from internal source or external source.

Idea screening:

From thousands of idea company  has to filter it and has to choose good realistic ideas that can exist in the real world and can serve the demand of people.

Concept development:

After filtration of idea ,it gets transformed in to product concept .How product can be formed and can be used or sell in the market.

Marketing strategy;

Once it's decided what kind product you are going to manufacture next step is to check out the strategy to attract the customer before that you have to find out the opportunity market or your target customers that only you can adopt any strategy.

Business analysis:

Now this is the time to check out the cost of your product ,sale of product,revenue,margin,profit at last you have to decide product is profitable enough or not is it surviving  above the BREAK EVEN POINT or not than only you can take any decision to continuation with work or not.

Market diffusion includes how innovation accepted by the consumer .its actually the review or response of customers.Its difficult to understand diffusion in New product development because consumer takes time to understand the product and tries his hand on it.