New product development process is how companies create an entirely new product to have a new space or add to an existing product line. New products can take different forms from fresh goods, new applications, or even innovations. New product development is essential for the growth of a company as it increases the size of a business and profits. New product development process speed is equally vital because product life cycles are reducing, and there is heightened competition. In such an economic environment, companies need innovative strategies for new product development. This essay discusses how a new product replaces another.
A new product is developed through a company’s research and development and leads to new products, modified products, improved products, or even new brands. For a new product to replace another, a company needs to consider new product positioning, new product development, product adoption, and diffusion process. New product positioning involves identifying all the features offered by other competing firms and the factors influencing purchasing decisions. New product development process involves different stages that include idea generation, research, concept development and testing, analysis, test marketing and commercialization (Nikolaos, Erik, and Susan, 2004, p. 619).
Idea generation involves the search for new business ideas to find new and valuable products. The research process involves evaluating the new product ideas to adopt the profitable ones and drop the poor ones. Concept development and testing involve further developing the idea and concept while testing the concept on a group of customers to test the idea’s viability. The features that consumers want should be communicated through the product features and design. The analysis involves evaluating the feedback from customers to make the needed changes and decide how to introduce the new product to the market. In business analysis, the company should analyze the product’s sales, costs and profits and also ensure that the product fits the existing product mix. Test marketing is the stage in which the new product prototype is introduced into realistic market settings in order to test their performance. Test marketing identifies the customer behaviour and modifies the product or marketing plan to fit the customer’s needs. At commercialization stage, the new product is introduced to the market through promotional tools of marketing. The new product is then distributed to the market intensively and selectively to replace another product or add to an existing product line (Nikolaos, Erik, and Susan, 2004, p. 622).
The product adoption process involves how consumers and buyers become aware of the new product, develop interest and adopt the product. When buyers become aware of the product, they receive information and are eager to learn about the new product. The buyers also evaluate the features and benefits of the new product so as to decide whether to continue buying the product. This stage also involves testing and trying out the product before finally purchasing and using it when need rises. The diffusion process involves the manner in which different audiences in the target market accept and go on to purchase the new product (Kotler, & Gary Armstrong, 2010, p. 213).
A company must be able to promote the product to create awareness of its existence as well as its features and benefits. The patterns of adoption and purchase determine whether the product has been successfully developed and introduced to the market. When well-tuned to the customer’s needs, developed within budget, and ahead of the competition, a new product can have competitive advantages for a company.