NEW PRODUCT DEVELOPMENT

Involves cultural trends and observing customer behaviors.

Eliminating possibilities until one or two ideas are selected for development.

A prototype is made and tested.

Evaluates proposed product in terms of size of market, potential sales, costs, profit potential, technology, the competition, and the level of risk involved.

Companies make plans relating to production, packaging, labeling, branding, promotion, and distribution.

This stage is also called "commercialization". New products are advertised to introduce benefits to consumers.

Marketers track customer responses to the product.

New product development generally involves ______ key steps.

Creativity is essential in this step of new product development.

A model of a new product.