What does New product development mean in marketing terminology?

New product development

New product development is a process used by businesses to identify, design, and create new products that could be sold to customers. It's a key part of any company's marketing and growth plans, as well as a critical step in the product life cycle.

The process of new product development is generally broken down into three separate phases: research and development, market testing, and finally, product launch. Each phase is important and has its own set of steps that need to be carefully considered throughout the process.

The first step in the process is research and development. This section essentially acts as a planning phase, and it is crucial to ensure that each step in the process is completed before the product is moved on to the next stage.

In this step, the business works to identify customer needs to develop ideas for products. Businesses employ market research techniques such as surveys, focus groups, and interviews to determine the needs and wants of their customer base. They then develop ideas and innovations in light of these insights.

Become a Sales & Marketing Rainmaker

Learn valuable skills to win more customers, grow your business, and increase your profits.
The Rainmakers Club

After they are confident the product or service will be beneficial to the customer base, businesses move the product into the testing phase. The product is tested in the field by customers or potential customers. This process helps to validate the company’s assumptions about customer feedback and behaviors, allowing them to make any necessary changes before the product is launched.

Finally, the product is launched. The goal of this step is to introduce the product to potential customers. Businesses will create a marketing plan to drive product awareness, attract customers and ultimately increase sales.

New product development is an ongoing process that is used by businesses as a key part of their marketing and growth plans. At each stage of the process there are important steps that must be taken to ensure the product is successful. These steps include research and development, market testing, and product launch.