STEPS IN DEVELOPMENT OF NEW PRODUCT 1 IDEA

STEPS IN DEVELOPMENT OF NEW PRODUCT 1. IDEA GENERATION: - Idea generation is the first important step in The development of a product. It is a systematic and regular search For new product possibilities. 2. SCREANING PRODUCT IDEAS: - At this step, an attempt in made to Identify the best suited product to future activity of entrepreneur. 3. CONCEPT TESTING: - Promising new product ideas are converted Into testable consumer concepts. it determines customers attitudes Before product development.

4. BUSINESS ANALYSIS: - At this stage, an attempt is made to find Out the profitability of the new product ideas from business point Of view. 5. PRODUCT DEVELOPMENT: - At this step, efforts are made to give Practical or physical shape to the product idea. 6. TEST MARKETING: - Under test marketing , the entire product And marketing programme is tried out for the first time on a small Number of well selected potential customers. 7. COMMUNICATION: - Communication refers to introduce the Product into the market.

PRODUCT LIFE CYCLE Product life cycle is an attempt to recognize distinct stages in the Sales history of a product. The various states of product life cycle are : - 1. INTRODUCTION : - Introduction of product in the market is Characterized by slow sales growth, higher product prices etc. 2. GROWTH: - Growth stage is featured by quick rise in sales and Maximum profitability.

3. MATURITY: - Maturity stage represents that period in the product Life cycle when sales increase at decreasing rate. 4. DECLINE: - At this stage, there is decline in both sales and profits.