The Seven Phases of New Product Development:
1. Idea Generation-looking for product ideas that will help a firm to achieve its
objectives.
2. Screening-a firm's managers consider whether the organization has personnel
with the expertise to develop and market the proposed product.
3. Concept Testing-product idea is presented to a small sample of potential buyers
through a written or oral description to determine their attitudes and initial
buying intentions regarding the product.
4. Business Analysis-provides tentative ideas about a potential product's financial
performance, including probable profitability. The firm considers how the new
product would affect the firm's sales, costs, and profits if it were introduced.
5. Product Development-the company must find out if it is technically feasible to
produce the product and then if the product can be made at costs low enough to
justify a reasonable price. It is then transformed into a prototype.
6. Test Marketing-the limited introduction of a product in several towns or cities
chosen to be representative of the intended target market. Its aim is to determine
buyers' probable reactions.
7. Commercialization-plans for full‐scale manufacturing and marketing must be
refined and completed, and budgets for the project must be prepared.