Only a minority of new products are new inventions: Just under half are product replacements, which are improved versions of existing products.

Analysis of the micro and macro environment, competitive positions of the organisation and competitors, differential advantage and marketing information.

Tools that can help in new product planning are SWOT analysis and Ansoff's Matrix.

Depending on the industry/size of a n organisation, ideas may come from any of the following:

Research labs, periodic reviews, open calls for product suggestions, serendipitous suggestions from staff or customer feedback etc, competitors or other organisations or collaboration.

Testing a more detailed idea as a product concept with target consumers to gauge their reactions to it. The product concept could be described with words/images and may sometimes include physical representations.

Gain feedback through a set of questions.

Questions could cover; product attractiveness, benefits, uses and purchase intentions.

Focus groups, Online forums, Online brand communities.

Allows products to be refined before expensive further development is pursued.

Recommend developing a marketing strategy consisting of three parts:
The target market.
The planned value proposition - the planned price, distribution and marketing budget for the first year.
The sales, market share and profit goals for the first few years.

Costs include research and development, manufacturing, any new facilities, any additional staffing and marketing of the new product.

Financial viability may be assessed using a break-even analysis - The number of sales needed to cover the costs.

Entails translating the product concept into an actual prototype of the product.
This can be used to gauge consumer interaction of an actual product rather than a description/image.

Doesnt just involve testing a prototype with a sub set of consumers.
Includes the full marketing mix.

Tested in laboratory, virtual stores, on a panel of consumers or in a limited real market setting.

Less costly than a full scale rollout

Allows elements of the marketing mix to be adjusted if needed based on the feedback received.

Full scale launch of a new product having evaluated feedback from the test marketing and made any amandements to the marketing mix.

Costliest stage of NPD

Timing of the new products launch needs to be careful.

An offering needs to be made available in such a way that customers are able to purchase it easily.

Cusomers are typicaly offered a range of channels through which to purchase an offering.

Under a traditional distribution channel, each channel member was independent and pursued their individual goals and could conflict as well as cooperate with other channel members.

Contractual VMS - Having contractual arrangements with them - (Franchises) Mcdonalds, Subway, Holiday Inn, Hertz

Administered VMS - Exerting control through superior size or power. - Walmart

Corporate VMS - Owning the other channel members - Apple

An audience centered activity, designed to engage audiences and promote conversations.

The various communication techniques such as advertising, personal selling, sales promotion, and public relations / product publicity available to a marketer that are combined to achieve specific goals.

Price is regarded as a means of creating value for customers and developing customer relationships.