Given a clear strategy it is necessary to build the organizational capability to meet the challenge.
Organizational Structure and Staffing
Given a clear strategy it is necessary
to build the organizational capability to meet the challenge. At times this is
simply appointing a committee. Other times it is creating an entirely new team
and physically separating it from the ongoing organization. Selecting the right
persons for such a team is difficult.
Concept Creation and Development
Once the enabling conditions of
strategy and organization are identified, actual ideation can begin. First, the
team must focus on one area of interest or activity – specifically, a product
category, a group of team may study floppy discs and try to improve them.
Another team may try to find better ways to solve the problems of teachers. Or
they may work to develop improved gold balls or golf balls or golf clubs. They
may focus on their design capability and find new applications. Or they may
focus on combinations of two or more of these areas.
Concept development involves
asking question such as the following:
Need: Do customers find a strong perceived need for the
Trust: Do they believe that the new product has the
Do customers easily understand the key benefits
Usage: Does it offer easy adoption?
Value: Do Customers see it as offering
value at the price being considered?
After the working area is
defined, concept generation begins, often at a hectic pace. Ideas flow fast and
in most cases rejection is equality fast. The team looks for the few fast and
inmost cases rejection is equally fast. The team looks for the few concepts the
warrant concepts development – the evolving of an original ideation attempt into a specific statement
of need, form and technology that can be evaluated.
Often considered the heart of the
new products process, the Evaluation State is long, involved, and difficult.
Evaluation actually begins when the strategist evaluates the organization’s
abilities. And it continues long after a product is marketed since a product
often needs revision to remain competitive. Concept testing and other
prescreening marketing research prepare the team for the actual screening
evaluation. This evaluation is a full, detailed analysis of the proposal. If
the concept passes screening, technical development begins. The technical work
produces prototypes, which can then be evaluated and if all goes well, the
finished product can be prepared for use testing. Next, the team joins the new
product to its marketing plan for a test of them combined – called market
testing. All of the above data combine to permit a full financial analysis near
the end of development.
Management’s decision that the
new item is worth marketing either in a test market situation or in a full –
scale launch – is called the point of commercialization. Pilot processes are
then converted to full-scale manufacturing. Final design specifications are
written. Marketing strategy is finalized, including actual brand, packaging,
service commitment etc. The team gradually moves the company from tentative
exploration of a concept into production and marketing of a new product.
Review and Evaluation
After launch the entire project
must be reviewed to see how successful the team was, those problems they faced
and what they can learn to facilitate the next project.
Tags : MARKETING MANAGEMENT - New Products Development Strategies
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