Impacts And Importance Of New Product Development Marketing Essay
|✅ Paper Type: Free Essay||✅ Subject: Marketing|
|✅ Wordcount: 1616 words||✅ Published: 1st Jan 2015|
In the world of business, it is said that the internal environment which are related to strength and opportunies should be strong compared with weaknesses and threats. This is because if either one of them are not strong enough, thus, this can brings down an organizations which is lack of an important tools.Thus, the only way which they can survive is that the should comes of with new ideas in terms of innovations and developing of new products.
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First of all ,they should keep them self in trend which means that they should keep themselves up-to-date so that they can follow up with the current market trend and can survived in this world of business which is full of competitors and they are about not to worry in what career they are in business. The product which they need to develop brings more risk because there are some of their competitors which produce the same product but with different in terms of their brands and specifications. However, their reward in terms of the sales of their product is different.
As a marketing manager for a technology based company called HP, I have been assigned to produce a report to my managing director to emphasis on the importance and impacts of new product development. I have chosen HP for the new product that they intend to launched touscreen desktop.
TO: Managing Director of HP.
FROM: Marketing Manager of HP.
SUBJECT: Impacts and Importance of New Product Development
2.1 What is New Product Development?
The new product development can be defined as the term used to describe the complete process of bringing a new product or service to market. There are two parallel paths involved in the NPD process. The first involves the idea generation, product design and detail engineering whereas the other involves market research and marketing analysis.Basically, Companies typically see new product development as the first stage in generating and commercializing new products within the overall strategic process of product life cycle management where it is used to maintain or grow their market share. (businessdictionary.com)
3.0 Stages in New Product Development
In this process, there are 6 steps involved where it helps to introduce a new product in certain period of time. Besides that, Improving and updating product lines is crucial for the success for any organization. However, Failure for an organization to change could result in a decline in sales and with competitors racing ahead. The process of NPD is crucial within an organization. Apart from that, Products go through the stages of their lifecycle and will eventually have to be replaced. (venturenavigator.co.uk)
3.1 Idea Generation
This is among the first steps in this NPD process.Basically,it is often called as is the “fuzzy front end” because Ideas for new products can be obtained from basic research using a analysis, current Market and consumer trends, company’s R&D department, competitors, employees, salespeople, corporate spies and other too. Lots of ideas are being generated about the new product. However, Out of these ideas many ideas are being implemented. The ideas use to generate in many forms and their generating places are also various. Many reasons are responsible for generation of an idea. For example,HP realized that the future of business are challenging.Thus,through its invention of the HP Touch Smart 9300 Elite Business PC recline from upright to almost flat where it can provides consumers and business users increased comfort for longer-term use and making it easier for businesses to engage customers. (venturenavigator.co.uk)
3.2 Idea Screening
This second steps is where the object is to eliminate unsound concepts prior to devoting resources to them. In this case, the screeners should ask several questions such as will the customer in the target market benefit from the product, what is the size and growth forecasts of the market segment, what is the current or expected competitive pressure for the product idea and Will the product be profitable when manufactured and delivered to the customer at the target price. As for the HP Touch Smart 9300 Elite Business PC, it has been designed according to the current trend of the customers in the market. (venturenavigator.co.uk)
3.3 Concept Development and Testing
In this step, the inventors should develop the marketing and engineering details through the investigations of intellectual property issues and search patent databases. As the product is going to be launched in the market, the authorized person should know who their target markets are and how the product gives benefits to them does. Apart from that, they also might think whether how will consumers react to the product.So, in this case, they test the concept by asking by asking a sample of prospective customers what they think of the idea. Usually via Modeling. As For HP, they realized that their touch smart product is mainly targeted to the business person where they can used it in their daily life styles. (venturenavigator.co.uk)
3.4 Technical Implementation
These steps are related to new program initiation where it also involved the resource estimation. For example, the HP users wanted camera applications to be installed in this touch smart product so that they can have a direct face to face communications towards their business partners. (venturenavigator.co.uk)
These steps can be known as the post NPD.This is because in order to launched a new product, there are certain criteria which need to be considered. For example, produce and place advertisements and other promotions or known as 4p¿½s which need to pay attention so that each and every customer were provided with enough information about the products. As for Hp,it uses several methods such as media mass which includes television, radio news papers, flyer distributions and not forgetting the internet advertising. (venturenavigator.co.uk)
3.6 New Product Pricing
As for new products which were launched in market, the price plays its important role because it decides the each and every customer¿½s purchasing power. Apart from that, Competition and alternative competitive technologies from different companies may high. So, they should ensure that the price is based on current market price and reasonable so that the customer could own it. (venturenavigator.co.uk)
4.0 Importance of New Product Development
It is important the new product which is based on current market trends should be launched so that it can gives greater benefit to the customer¿½s. At the same time, it can also help them to understand what are the needs of their customers helps to increase the sales of their business in terms of maximizing the profits. Apart from that, Service companies should take a disciplined, analytical approach to developing new services, relying on targeted customer input just as companies outside the service sector do. Companies in the service industry know that they are competing for customers based on perceived value as much as actual price. (referenceforbusiness.com)
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If a customer feels they are getting better treatment, or more service options, or more “free” services as part of their purchase, they are more likely to remain a client of that company. However, a company stops innovating and adding new services to its core business, then the service becomes a commodity and clients look at only one thing¿½price¿½when deciding on what company to choose. In today’s technology-fueled business environment, the always-important speed to market factor has become perhaps the most critical factor in new product development.
Today, however, speed to market is perhaps the most crucial part of product development. Improved communication especially the Internet, increased globalization, and rapid changes in technology have put tremendous pressure on companies to get their product to market first. To improve speed to market, a company should first make sure that it is making the best possible use of available technology. Whereas the service companies should take a disciplined, analytical approach to developing new services, relying on targeted customer input just as companies outside the service sector do. Companies in the service industry know that they are competing for customers based on perceived value as much as actual price. (referenceforbusiness.com)
5.0 Impacts of New Product Development
The impact of the new product development is based upon the responses which are received towards its products that are launched in the market. Apart from that, the company will be having increase in brand value where the stakeholders will be investing more on the company. .This is because the products comes with different types of applications where it suites for the business purpose. (www.scribd.com )
As a conclusion, bringing a product to the market may requires lots of steps as well as the time consuming. Although the process is long, but in terms of profit it would be much bigger. As for the Hp touchscreen, upon its launched, it received more good feed back from its customers, mainly the business leaders as well. What they know is that, the touch screen desktop is mainly used for business purpose and the organization should play its important role in order to ensure that they must be in high ranking in terms of their products which were currently in the market with higher demand.
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