Describe the process of new product planning.

Description should include the following seven key steps in new product development:

  • Generating ideas
  • Screening ideas
  • Developing a business proposal
  • Developing the product
  • Testing the product with consumers
  • Introducing the product (commercialization)
  • Evaluating customer acceptance

Process/Skill Questions:

  • Why is evaluation of customer acceptance an important step in the product planning process?
  • Why would a business not test market their product?
  • Why is an understanding of the concept of the product life cycle important in the product and/or service planning process?
  • What role does technology play in product and/or service planning?