Week 5 Project

Stages of the New Product Development Process

The product planning and development process is a systematic approach that the �rm must undertake while designing, developing, and

launching new products. Once marketing managers have used marketing research to understand the needs of their target market, they

need to create a new product development process based on the research. The new product development process consists of �ve stages:

1. The �rst stage is to generate ideas. This is where research plays a critical role since the needs identi�ed in the target market provide the inspiration for new product ideas.

2. The next stage is to screen the ideas. Here, the consumer panel plays a key role in providing feedback on the ideas.

3. The next stage is the actual development and testing of the product. Again, the consumer panel plays a key role in �eld-testing the

product and providing feedback to improve the product.

4. The next stage is to test-market the product before its commercial launch. In this stage, marketing managers often use focus groups

to get feedback on the product in the test market.

5. Finally, the product is launched, and the process starts all over again for a new product.

The product mix is the width and depth of a �rm's product line. The combination of the width and depth of a �rm's product line

constitutes its offering to the marketplace. A �rm increases the width and depth of its product line so as to serve new market segments

and better serve existing customers, respectively. Both width and depth are critical to the success of a �rm. For example, in addition to

motorcycles, Harley-Davidson offers its customers leather jackets, boots, and other related products favored by Harley-Davidson riders.

Supplemental/Transitional/Introductory Text:

Managing Products

The product life cycle is one of the most powerful tools available to marketing managers. Every product category goes through �ve stages —development, introduction, growth, maturity, and decline—and the product strategy changes with each stage.

Development: This stage marks the development of an idea into a product. During this stage, sales are zero and the company costs keep

building up.

Introduction: The product is introduced in the market, and the focus is on increasing sales. The heavy expenses at this stage rarely result

in pro�ts.

Growth: During this stage, the product sees growing market acceptance and pro�ts.

Maturity: The product is accepted by most of its potential buyers and faces rising competition in the market. The sales growth begins to

slow down, along with the leveling off or decline of pro�ts.

Decline: This is the stage when the product is said to be "dying" and its sales start to decline.

Additional Materials

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