Main new product development strategies

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The development of new products is one of the activities that can represent greater competitiveness for a country or a company, but it is necessary for the organization to have an integrated development plan for products and market opportunity in place.

Marketing management currently presents a customer orientation, where it becomes vitally important when we enter the customer experience journey, before, during and after the acquisition of a product and even more so if we are talking about the introduction of new products.

Good management of the product life cycle allows improving the efficiency of production processes, through effective management and innovation of products and related services during the economic life of the product.

Most new product launches are unsuccessful. What makes the few successful? A key parameter of the attractiveness of a new product is its degree of novelty where innovation is essential for value creation.

Five Factors in New Product Development

In this way we find that in this global market where early adopters continuously demand new developments, operational efficiency and value proposition are two pillars on which companies support the product development companies.

costs

Which has to do with taking them to their minimum value, as well as offering an optimal variety of products of similar design (concept of the industrial age but debatable in a knowledge-based economy), the integration of suppliers as well as automatic handling of the materials.

Quality and reliability

That require a rigorous and disciplined development of the process and the product, as well as focus on satisfying the client's requirements and emphasizing quality tests and performance indexes, which guarantee the acceptance of the products in the market.

opportunity for the market

That you need to ensure sufficient resources to initiate product development, constant monitoring of the market and customer needs (market intelligence), as well as well-managed programs and delivery responsibility.

Innovation and technology

It is a very important factor that is supported by Technology Management in accordance with the product strategy, effective technology management and clear technology investment and employee training policies.

Flexibility

Flexibility to respond quickly to opportunities that arise in the market, with facilities to adapt to changes that arise in product design and to integrate new technologies that appear into the process.

The new product development process

Companies often treat the development of new products ( NPD ) as a monolithic process, however, it is possible to divide it more rationally into two stages: an initial stage focused on evaluating the possibilities of new products and ruling out bad bets, and a advanced stage that seeks to maximize the market value of approved products.

However, there are situations in which executives dismiss data that question their assumptions about the chances of success of the product and others in which factors that favor the success of the NPD process can be delimited .

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