New Product Development

Improving and updating product lines is crucial for the success for any organization, and the failure of an organization to change could result in a decline in sales with competitors racing ahead. The process of new product development (NPD) therefore becomes crucial within an organization. Indeed, products go through the stages of a life cycle, which mean that eventually they will have to be replaced.

According to marketing guru Philip Kotler, there are eight stages of new product development: first, idea generation; second, idea screening; third, concept development and testing; fourth, marketing strategy and development; fifth, business analysis; sixth, product development; seventh, test-marketing; and finally, commercialization.

In the first stage, organizations obtain their ideas for new products from within the company: employees, competitors, customers, distributors, and suppliers. ...