Three Different Types Of New Product Procedures Marketing Essay

Chapter 1

1. 1 Benefits.

New-Product Development procedures are highly complicated, powerful, iterative, and unique. They are complex because they involve multiple disciplines (Simon 1981; Subrahmanian et al. 1997; Reich et al. 1999) they contribute to the introduction of both simple, complicated and multidisciplinary products, whose resources are limited, short period development time, and increased and regulatory requirements accompanied with quality (Ulrich and Eppinger 2000; Kusiak 2002; Shane and Ulrich 2004). They evolve continually because they're vital credited to various reasons including market, technology, and organizational changes (Fricke et al. 2000; Otto and Hardwood 2001). "They are simply inherently iterative because of the interdependencies between your design activities (Yassine and Braha 2003). They are simply unique, though they may reveal common features or elements (Smith and Morrow 1999). "

A product development process is flow of activities required to transform ideas to products of similar activities which were converted to produce a new product and create chance for these products in the market. move from ideas through specific design to meet up with the goals within the constraints required before being accepted as a new product. A number of the challenges to new product development include the increasing uncertain business environment, not so smooth markets from buyer and other buyers, and different levels of organisational ability to develop when followed with a new product task. Therefore skills of command and management are needed to assault, guide and make product development process is highly essential. (R. J Thomas 1993).

1. 2 Three Various kinds of New Product Operations.

The following will be the three different areas of product development processes which we will be having to consider in these project. These processes will be briefed more in following chapters of this write up.

Product development functions in an Anatomist Sector

The pursuing steps and processes have been recognized in an Executive sector that a fresh product is launched in to the market. These procedures will be expatiated more in following chapters (Kim B. Clark, Takahiro Fujimoto)

Product and Process Design (Idea Era)

Product Planning/ Concept validation

Product Engineering

Process Engineering


Product development techniques in a Pharmaceutical Sector

Also for the process of introducing a fresh product in a pharmaceutical sector, the next processes are been considered

Basic research

Applied research

Clinical development

Regulatory delay

Post marketing evaluation

(PDDM Module Be aware, Mairi Macintyre)

Product development functions in a Software environment.

Concept Development - Concept Refinement and Concept Screening

Concept Alignment

Concept Legitimization

Chapter 2

Three Different New Product Processes

Product Development steps in an Anatomist Sector:

The following operations are been discussed because they form the basis to which a fresh product is been presented in the engineering sector. There are a few more procedures which new product must undergo right from when the theory was made up to when the new product would be created in to the market. But for the nature of this write up, it will be looking critically into three major aspects of new product operations which encapsulate all other functions and their difference in which a new product must proceed through before introduction. These major techniques are as follow below:

Fig 1: Periods of New product development procedures. Designed from Kim B. Clark, Takahiro Fujimoto

Product and process design ( Idea Technology):

From the diagram, this level shall be considering the following new product development techniques, which can be: Product idea, Product Plan, Product Design and Process Design

There are so many ideas put together when a new product is going to be formed, many of these ideas are considered and put to make use of. Ideas for these new products can be obtained from doing basic research by considering the opportunities and durability which they would posses or by the weakness and durability which they bring forth. Other way also includes using market styles, conducting surveys, taking a look at competition available, target customer etc.

At the idea/ principle generation stage home elevators what the market would maintain the near future, the possible technological actions and other conditions will be fused alongside one another into what's called the product concept. Creating a defined concept or proven fact that would attract proposed customers is the challenge designers, experts and planners are faced with. Delivering a detailed product concept is certainly more than just assuming or presenting a specifications and dimension about how the merchandise should be developed, it ought to be detailed so that it defines what the client actually wants. The merchandise idea is majorly a foreseen want, an important subject matter handed by the new product with the hope of rewarding the wishes of the proposed customer. It's mainly expressed at preliminary level by either person to person, diagrams showing specs. (Kim B. Clark, Takahiro Fujimoto).

Sources for new product ideas come from different aspect such as journals, opponents, employee's business customers etc. Research based mostly ideas could be limited to small scale businesses when it come to doing technological generation of ideas. This particular stage is very important as it lays the bases and groundwork for all other stages involved in the process of product development, ideas produced at this time gives the guideline to the complete success of the merchandise development. At this stage also the number of ideas generated do proceed through a screening process whereby the more lucrative and feasible ideas are been segregated from others. Views of impending customers, staff are been seeked to enable a proper screening process process. Also the factors that might be affecting businesses externally such as competition, different changes in technology, legalities are all criteria to be considered in making your choice. Ideas that are more desirable and feasible are the particular company sticks with from the top pool of ideas produced and come up with. (smallbusiness. chron. com, 4th Nov 2012)

Concept Validation/ Product Planning:

The concept has truly gone through a process which has been able to stand different circumstances which could face an organisation varying from businesses to market etc. The theory should then be taken to proposed customer and a few survey needs to be made about this new proven fact that has been developed. Question like how sensible and possible is the merchandise? Of what gain is it to the prospective customer. At this stage also, this can be a prototype that is been used to do this study, no major creation is done yet. (www. learnmarketing. net 6th Nov 2012).

After this survey is completed to confirm if this concept is valid and appropriate by the mark customer, an activity in which the product should be organized for is also completed whereby the business enterprise evaluation and specific details whereby the look, style, different structure, what standards to be utilized etc. is placed into thought. Also questions like what the value of the new product would be? What volume should be produced based on market and an estimation of the actual profitability what end up like also would be considered. The power, weakness, opportunities and dangers of thee new product is analysed. (http://smallbusiness. chron. com 6th Nov 2012)

Process Execution and Developing support:

This process deals with the execution of the new product, while developing discusses the measurement control system and production which provides a responses on the new product after been unveiled to the marketplace. Product engineering at this time changes all what product planning is all about into a more detailed product design and full level production begins at this time. Engineers at this time do face problems whereby have to now focus on the concept in real parts and ensuring they satisfy the customer needs and ensuring they meet up with the business angle of earning a product suitable to make revenue. The materials are then come up with into prototypes, which show the first impression of what the design end result would be. These prototypes are then tested to see they meet the attributes where have been portrayed in the design. Sometimes adjustment and adjustment are created also when this is been completed. All these techniques are been adopted till the product meets the necessity and its own officially accepted.

Process engineering changes a full product design that has been accepted into process design which can be then been submit to the marketplace. " Process design information is consequently converted into the actual development factors such as tools, machines, numerical control tapes, and trained employees- that are deployed in volume level production plant life. The performance of the factors is analyzed at various tryouts and pilot runs". (Kim B. Clark, Takahiro Fujimoto).

Product development operations in an anatomist field is shown below in a more simplified manner, it outlines group of products which have been manufactured already. The model shows the different processes beginning with the concept era to planning of the product and the product and process executive.

Product development operations in a Pharmaceutical Sector

This stage refers to how technology or product development operations are been adopted for a new product to be developed. Steps highlighted previous are been placed into practise here and expatiated more. The structure and innovation techniques may differ according to different companies

Basic Research:

At this stage a proposal for development, this identifies what the basic looks and top features of the product in terms of quality, market characteristics, amount, proposed progress of product, price level etc are been submit to the panel organisation for review. Other departments in an organisation who also involved with the evaluation of the new research will be the research and development group, marketing team and other managers who with regard to technicality and viable options begin to check the feasibility. Should these factors which are in consideration be successful, another stage which the product thus move forward to is the applied research. (Ekonomicheskaia nauka sovremennoi Rossii, 2009, no. 2. )

Applied Research

Applied research is the next phase which these product thus move forward to after gratifying the essential research. This period the easiest and efficient mode of solution are been seemed for also at this stage. These product is been delivered to laboratories for screening plus more research how effective the product would be to the end consumer which is the client, competence of the technicians in the lab, work ethics are also been considered. These research hereby proposes what the merchandise standards or design would. For instance, if a medicine is been produced, the research gives precise information on what the composition of every of the substance to be utilized would be, they test the compatibility of the medicine with our body and make sure there is no detriment. Also the financial value of these product is been looked into, what the development and development cost would amount, detailed process of the way the product would evolve also. A prototype is then delivered and test on efficiency of the new product is been transported as tests. (Ekonomicheskaia nauka sovremennoi Rossii, 2009, no. 2. )

Clinical Development

Performing professional medical and technical tests for the product are area of the process when a new product follows in a pharmaceutical environment. An application is set up for the campaign of the new product on the market. In this program, records, different techniques and development are changed so as to get production technology to be utilized. Using alternate development techniques or special machines can be used in decreasing the production cost in this development. When several test has been completed during this medical development and production process is certain, test are been completed multiple times consistently and changes are been made in the documentation should there be need for them. Finally innovations and documentations of product is then been approved in order allow roll out of products. (I. B. Gurkov, A. S. Gol'dber and O. A. Shibanova)

Regulatory Delay

In any country, before pharmaceutical products are released, they need to go through approved regulatory body which is accountable for the screening process and examining quality of pharmaceutical products. These regulatory Physiques also carry out intense test on the product, depending on work flow of the company, specific dates might not be given for the acceptance of these produce that could delay or affect the production process of the organisation. If the merchandise scales through the test which would be conducted by the regulatory firm, a permit or specialist for the product to be produced is given. But should there be glitches in the product been sent to the agency, it might be sent back to the organisation for further check which in turn causes more wait in the development process. (I. B. Gurkov, A. S. Gol'dber and O. A. Shibanova)

Post Marketing Evaluation

This level of development process is more of the marketing and reviews after product release has been conducted. From reviews and opinions which are available to the company, the product can be subject to adjustment during further control. In a circumstance whereby the change needed cannot be carried out by the company scheduled to regulatory conditions, th product can be studied out of product. In situations like this the firm programs forward for situation such as this and therefore do have substitutes because of this product based on same solution. (I. B. Gurkov, A. S. Gol'dber and O. A. Shibanova)

Product development functions in a Software environment

Diagram showing an activity for a leading end development of a fresh product.

Fig 2: Modified from California Management Review VOL. 54, NO 4 Summertime2012 CMR. BERKELEY. EDU

Research made in the digital environment has continuously made involvement in new product be on the increase. Exemplory case of such are youths who regularly use the public networking environment to set-up relationship with the exterior world which in a way provides researcher with an increase of knowledge to develop more sociable networking sites there by creating new ideas and concepts. This enables firms to be enlightened about the opportunities' available to them by this research. It recognizes the opportunities' available to the firm relating to this research on the merchandise development, the business must have the ability to explore different solutions and market making an important aspect of new product development.

Prior to developing a new product in a software environment brief processes which are highly essential are pointed out below giving detailed steps.

Concept Development

A good idea/ concept must be created which literally means that "Group of transformation of input elements into productivity elements". The type element is the theory showing an opportunity. This notion or notion is then became something to be developed. The idea/ strategy is then changed into 2 related activities which are idea refinement and idea screening process, which are shown in the diagram above. In the fig above also "Concept development constitutes the central of the framework but must be complemented by its position and legitimization. Concept alignment expatiates about how the company strategically aligns an idea with its inner and exterior environment. As the legitimization acknowledges the socio-political aspect and the necessity for creating organizational commitment in leading end" (VOL. 54 cmr. berkeley. edu)

"As complete in Fig 2 Several preconditions must be satisfied for a corroborated product definition to emerge. First, companies need high-quality development, seen as a satisfactory I/C refinement and I/C screening process that allow them to develop a concept into a corroborated product meaning. As implied by the sine curve, both of these activities are interrelated and really should not be performed in isolation. Rather, during the prominent end, development personnel need to iterate between idea and concept refinement and verification. In the front end, screening process is not exclusive to the gate reviews. Some firms use formal testing activities, screening must also be achieved more informally, in a continuous manner, and included with refinement activities" (CALIFORNIA MANAGEMENT REVIEW VOL. 54, NO. 4 SUMMER 2012 CMR. BERKELEY. EDU). Concept development can be further divided into 2 stages.

2. 3. 1. 1 Idea/ Strategy Refinement

Concept refinement gives a new product development its route, passion and complex specification that should be used to be characterized by imagination and tests. The research and development team calls for the theory and refines it into a product idea, which is then also enhanced into a prototype product. As the engineering of the merchandise is vital, the complete process should show more quality, information and specific somewhat than simply making plenty of quantity to specs. "A new product idea is a mental picture of your possible and feasible solution to a difficulty" (Grain et al. , op. cit. ). "The quality of the idea is critical and can make or break the job" (Griffiths-Hemans and Grover, op. Cit).

The major reason for concept refinement is because out of so many ideas that could have been come up with, a certain number of these ideas would be unsuccessful hence the necessity for refinement. ( P. G. Smith and D. G. Reinertsen). Another important aspect of theory refinement is determining the chance and ensuring uncertainties are reduced. (Griffiths-Hemans and Grover, op. Cit, December 2004). With this, we can deduce that members of the research and development team have to be able to discover essential information from the idea and work on it quickly. For example in case a software is been done and a credit card applicatoin which it is going to be a system where it runs is upgraded, development team building the software must be know this change and use quickly thereby lowering its uncertainties. However collecting reliable information isn't only needed for theory refinement, the process also must be proficient so that product process can move easily from ideas to concept that may be easily changed, to avoid time spent on irrelevant ideas. Furthermore poor execution of concept refinement can become more costly during the later levels of the new product development. (Florn, Henrik Frishammar, Aug 2012).

2. 3. 1. 2 Idea Screening

While refinement of ideas practically concerns the development of a thought, Idea screening centers more on the problems that your product is associated with for the customer. Furthermore idea verification can even be referred to as the group of activities which an idea has to go through after refinement, if the development of the idea should be further developed. (A. S. O. Yu, P. S. Figueiredo, and P. Tromboni se Souza Nascimento, March 2010) In some cases large companies do involve some digital system of choosing the right concept out of group of ideas. For instance when a company called 3M released its pacing programs that was used to identify and sort out between thousand of project which are in progress at any time within the 3M organisation (R. A. Burgelman, C. M. Christensen, and S. C. Wheelwright 2004). However, testing of products may also be not performed reasonably, because they only tend to focus on getting rid of the obvious ideas that are not suitable. This design has been validated by a study, which shows that most organisations have procedures to reduce fake positives through the first periods of product development but the preparation are poor due to bogus negatives (H. Chesbrough, 2004).

Concept testing in a software environment also can be performed in both formal and casual areas and the as inside and exterior factors. Therefore had the opportunity to terminate poor product ideas can help in keeping large cost of money. Example when General electric didn't make use of the proper selection criteria during a screening process thereby causing lots of problem to them (Gr¶nlund, R¶nnberg-Sj¶din, and Frishammar, op. Cit 2012).

Concept Alignment

Aligning a thought is one the main element activities in product development procedure for a fresh product in a front side end or software environment. Alignment is more confirming the merging of a concept and the way the firm producing this product wants to handle their procedure in launching. Generally, ideas and principles must be organised in such a way that it could fit the company's strategy and planning operations, both internally and externally. (Anokhin, Wincent, and Frishammar, op. 2012)

Relating internally to concept alignment, a fresh product concept must relate to the firms operation and technique for the new product to be performed thereby enabling its success (X. M. Tune and M. E. Parry, Sept 1996). Example of this is Apple, who when they produce new products always align their products with the design aspect and product technology which the company means, and this can be seen in all of the product amounts which is available to them.

In basic there are always errors whenever a new strategy for development is not being aligned to the companies procedure and strategy. Example of this is when projects that are not been successful neglect to capitalise on the main competence of the company whereas the successful assignments key into the key competence. (California Management Review VOL. 54, NO. 4. pg 9 2012) Then it is rather important to obtain a balance between the idea and the strategic operation of an organisation. Some other usual mistakes that are created is when a product is been based on a particular task which its designed to fulfil alternatively than considering the organisational fit, and also realising that the study and development section also funds jobs based on days gone by project technology they have got carried out, rather than what is required by an organisation products ( Khurana and Rosenthal (1997). The aspect of the merchandise planning is also one important aspect, which imply that an organisation must create a product definition which would subsequently give them a range of products to the clients. (Kim and Wilemon 2002). Therefore organisations should realize that new products which are been developed at the moment, do play a significant role for the company in a case whereby the firm wants to obtain future products developed and therefore require today's product as a basis. Also concept alignment makes sure the product not only fits the strategy of the business but also needs to add value to the details of the new product itself. Exemplory case of this is seen from Black colored and Decker when they launched a widespread electric motor that was used to swap the different brand of motors which have been produced in the past for different development field. This move made the company to have the ability to produce a lighter and even more profitable drill, that was also launched at a lesser price than its major rivals. This made Black and Decker a major player of the marker, despite the fact that other manufacturers from international are also within the market. ( M. H. Meyer and M. H. Zack, 1996). "Firms should also ensure that the project collection fits with source capacities of the organization so that maximum value from investment is gained" (C. H. Killen, R. A. Hunt, and E. J. Kleinschmidt 2007) Which means that there should be a contribution of front end initiatives to the introduction of existing products in order to employ their place in the merchandise life routine, also to have the ability to replace other products which are already getting to the finish of these life cycle. Then aligning of principle or idea is vital also since it allows a firm to introduce a new product line with disturbing other development i. e. it allows a synchronisation between your new product development process and the prevailing development process. ( C. H. Killen, R. A. Hunt, and E. J. Kleinschmidt, 2008).

Concept and ideas do have both interior and external position. Internal alignment deals with the factors which affect development of services internally such as team verifying all necessary specification for the new product benefits etc. Where external alignment deals with the organisation dealing with factor that affect new product release externally, example of these factors are technology advancement and competition from other manufacturers. (K. G. Rivette and D. Kline, 2000)

2. 3. 3. Concept Legitimization

The third major process in new product development for a software environment is the legitimization of the new product. I. e. protecting this new product development from infringement. This legitimization can be mentioned from 2 different ways, firstly is getting the product an acceptance from the governing council which this organisation operate from and second of all is guarding the copyright of the products by submitting it for copyright or patent cover. (Cooper 2008)

Ideas and concept generally need the input of other folks apart from the founder of the product for this to materialise in to the procedure for NPD. (Griffiths-Hemans and Grover 2004)

There are a few problems which companies do face when they neglect to legitimize an idea. Two major problem of this nature are, 1. Stable ideas are largely been ignored sometimes because they fail to be legitimize. Exemplory case of this is what happened to Hassleblad when they failed in their search to legitimize the task relating to the development of their camera. 2. Terrible ideas which should be quashed at the first levels of development can be push way ahead in company by the affect of top representatives, thereby causing unwanted cost and large development in the lines as the result. (Cooper (2008), S. K. Markham, July/August 2000, 429-447).

How the idea is developed is also an important aspect of notion legitimatization. Peradventure the concept is an idea that was attained by the introduction of an individual, panel management should take the legitimization of this notion very important, so that creating a commitment by the company to the theory would be higher. "concept legitimization is also contingent on the level of cross-functional integration, which is critical to (California Management Review VOL. 54, NO. 4 Summer months2012 CMR. BERKELEY. EDU 11th Nov. 2012) "keeping an idea alive and active" (H. A. Conway and N. W. McGuiness 1986). Basically this is said that, an idea or concept has to be put through constructive criticism from individual who have understanding of the new product to be developed in the team. If this isn't done, there may be consequences for it not been examined.

Chapter 3

Differences between Types of New product Development Process

There are couple of similarities between different operations of new product development in different industry, which is mainly at the early stages of creating a new product. The difference between each process in various areas of this article is usually to be looked upon. Three different phases in new product development shall be used to compare the dissimilarities. The periods to be looked at are

Initial / Early Stage

Production Stage

End product/ Marketing level.

The Stand below shows the various procedures and their stages and how they shall be compared.

Engineering Sector

Pharmaceutical Sector

Software Area

Initial / Early Stage

-Idea Generation

- Validation

- Research

- Applied Research

- Idea to develop a fresh product predicated on improvement

- Refinement and Screening

Production Stage

-Product Engineering

- Process Engineering

- Clinical Development

- Regulatory Delay

- Position i. e Interacting with the strategy of the organisation

End product / Marketing stage

-New product Developed into the market

Evaluation and marketing to know effectiveness

-Can be withdrawn totally from market

-Goes for Legalization

From this stand it can be seen that almost all of the techniques do have similar creation process however they get to happen at different stages, therefore making the production process different.

Some of the variations are brought up below.

At the early stage of new product development in engineering sector, validation happens at that level, but this same process which happens to be the legitimization stage at the new product development in a software environment happens to be at a later level after production has been made. Also this difference can be found at the pharmaceutical sector also whereby it happens at the creation stage following the product has been sent to responsible organization for regulatory acceptance.

There is hold off in the pharmaceutical sector when developing new product. That is consequently of the product being directed for authorization. This hold off is not often experienced in the engineering sector while procedures in a software environment experience its delay following the product has been produced.

In the case of handling in the program environment where new product is been developed, the new product must align with the functions and strategy of the organisation as well as the budget and other factors which the organisation would be turning over. Basically the engineering sector doesn't need this position at that same level in their new product development process, the merchandise has already started out full scale creation. While as of this same stage in the pharmaceutical sector, it is more of product tests that is been done.

At the finish of making in the executive sector, new product developed can only be subjected to fixes and maintenance, due to series of procedures it has gone through before becoming a completed product. New product developed in the pharmaceutical sector after been produced can be totally withdrawn from market.

Chapter 4


After consideration, debate and analysis of the many types of new product development techniques in different areas of developing industry, it could be generally figured, each development process in every sector from the Engineering/ Car industry, Pharmaceutical and Software Industry differ from each other.

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