New Product Development Flashcards, test questions and answers

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What is New Product Development?

New product development (NPD) is a process that involves the conception, design, development and marketing of new products. It is an important part of any organization’s growth strategy as it allows businesses to develop innovative solutions to meet customer needs while creating revenue opportunities. NPD requires careful research, planning, execution and monitoring in order to realize success.The first step in the NPD process is market analysis. This includes studying current trends and researching customer needs to determine if there is potential for a new product or service. This can involve conducting primary research such as surveys and interviews with target consumers as well as collecting data from existing customers. The goal here is to identify unmet customer needs that can be addressed with a new offering. Once the opportunity has been identified, the next step involves concept generation and evaluation where ideas are generated around possible solutions for addressing these needs. Ideas may range from completely novel offerings to improvements on existing products or services. Evaluations are conducted in order to select concepts that have promise for further development based on criteria such as technical feasibility, cost-effectiveness and marketability. The next stage involves design and prototyping where chosen concepts are fleshed out into detailed designs that represent how the final product will look like when ready for launch. Prototypes may also be created at this stage which allow designers and engineers to test different aspects of their ideas before committing resources into full-scale production runs. The fourth stage consists of developing processes for manufacturing the final product including selecting materials, setting up production lines and testing quality control procedures among others activities depending on what type of product or service has been designed earlier on during concept generation phase . During this time manufacturers must ensure they have enough capacity available so they don’t run out during peak seasons when demand rises quickly . Additionally , certain regulations may need to be followed such as safety standards set by government agencies . Finally , once everything else has been sorted out , comes marketing & sales , where strategies need to devised around pricing , distribution channels & promotional campaigns all aimed at driving demand & ultimately achieving desired results . In today’s competitive landscape companies need provide compelling reasons why customers should choose their product over any other – this means being creative & engaging with audiences through social media platforms or leveraging influencers who already have large followings within target markets . All those efforts become even more important after initial launch because without proper maintenance & support customer satisfaction starts dropping eventually leading brand loyalty loss unless something significant changes within organisation’s approach towards ongoing communication / interaction with its users base .