Product development

... Product development New product development * Generating ideas o Identify gaps in market through market research o Scientific research o Creative ideas * Analysis o Analyse ideas o Is product marketable o Decide if product fits in with company's objectives * Development o Technical development in laboratory o Production of prototype o Carried out by research and development department * Test marketing o Test marketing of product o Less expensive to make mistakes on smaller scale * Launch and commercialisation o Solve problems found during test marketing o Decide on marketing package it will use to give the product launch the greatest chance of success Constraints on new product development * Availability of finance and resources o Profit margins squeezed o Financial & HR unable to develop new products * Cost o Cost of developing new products may be prohibitive o Less time to recover development plans as products have increasingly shorter life spans * Market constraints o Little point in company developing new product unless consumers are prepared to purchase it at a price which can cover

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