Business Finance Homework Help

I need help with a Marketing question. All explanations and answers will be used to help me learn.

How does the new product development process differ for different types of products? What are some examples?

Below I’m including some extra information that professor gave us.

Products differ in how new they are to customers or to the firm introducing them. From a firm’s perspective, new products can be classified as new-to-the-world products, new-category entries, additions to product lines, product improvements, or repositionings. New products can come from external sources or be developed internally. External sourcing includes acquisitions or various types of collaborative arrangements allowing a firm the right to market the products of another firm. Internal development is when a firm is directly involved in the development of new products. The firm might work with other firms on some new-product activities, but it is actively involved in the process.

The new-product development process consists of the interrelated stages of idea generation, idea screening, concept development, business analysis, prototype development, test marketing, and commercialization. As a firm moves through this process, costs rise substantially. A prime objective is to eliminate potential product failures as early as possible and to spend time and resources on the ideas with the largest chances for success. Marketing research goes on throughout the new-product development process. Specific types of marketing research are valuable in the prelaunch stages. These studies help to assess market acceptance of the product and the likely success of particular marketing alternatives. Different marketing research approaches are used to monitor and evaluate results during the commercialization stage.