NPD & PLC
NPD & PLC
NPD & PLC
for the success for any organisation. Failure for an organisation to change could result in a
decline in sales and with competitors racing ahead. The process of NPD is crucial within an
organisation. Products go through the stages of their lifecycle and will eventually have to be
replaced There are eight stages of new product development. These stages will be discussed
briefly below:
Stage 1: Idea generation New product ideas have to come from somewhere.
But where do organisations get their ideas for NPD? Some sources include: • Within the
company i.e. employees • Competitors.
• Customers • Distributors, Supplies and others.
Stage 2: Idea Screening This process involves shifting through the ideas
generated above and selecting ones which are feasible and workable to develop. Pursing non
feasible ideas can clearly be costly for the company.
Stage 7: Test Marketing Test marketing means testing the product within
a specific area. The product will be launched within a particular region so the marketing mix
strategy can be monitored and if needed, be modified before national launch.
Introduction
As a new product much time will be spent by the organisation to create awareness of it presence amongst
its target market. Profits are negative or low because of this reason.
Growth
If consumer clearly feel that this product will benefit them in some ways and they accept it, the
organisation will see a period of rapid sales growth.
Maturity
Rapid sales growth cannot last forever. Sales slow down as the product sales reach peak as it has been
accepted by most buyers.
Decline
Sales and profits start to decline, the organisation may try to change their pricing strategy to stimulate
growth, however the product will either have to be re-modified, or replaced within the market.