New Product Development Process Flashcards, test questions and answers
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What is New Product Development Process?
New Product Development (NPD) is the process of bringing a new product to market. It involves research and development activities that identify customer needs, create solutions to meet those needs, and bring a product or service to life. NPD is an important part of any business as it can increase profits, provide additional products and services for customers, and help differentiate the company from its competitors.The NPD process typically consists of six stages: idea generation; market research; concept development; design and engineering; testing and validation; commercialization. At each stage in the process, there are certain steps that must be taken in order to ensure success. Idea Generation: This is the first step in the NPD process where ideas for potential products or services are generated based on customer needs. Ideas can come from internal sources such as employees or external sources such as focus groups or surveys. Once ideas have been identified they should be evaluated based on criteria such as feasibility, profitability, customer demand, etc., in order to determine which ideas should move forward into further stages of development. Market Research: After potential ideas have been identified they need to be researched further in order to gain insights into consumer needs and preferences related to the product or service being developed. Market research can include surveys, interviews with customers/experts/industry professionals, analysis of competitor offerings/pricing structures/business models etc., all with the goal of gaining deeper insights into what customers want from a specific offering before proceeding further with development efforts. Concept Development: This stage involves taking all information gathered during market research and using it to define what the actual product looks like through creating specifications for design elements such as features/functionality/usability etc., pricing structure etc., along with developing marketing materials such as brochures/websites etc. At this point it’s important for companies to decide whether they will develop a product internally or outsource any aspect of production depending on their capabilities at this stage in their growth cycle. Design & Engineering: The next step is designing & engineering where teams work together using specialized tools & processes in order to turn concepts into reality by creating prototypes & mockups while ensuring functionality requirements are met throughout each iteration (testing). Prototypes should also be tested externally through focus groups & beta testing before moving onto commercialization phase.