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International Marketing 2

The document provides information about new product development stages. It discusses the 7 main stages: 1) Idea generation, 2) Idea screening, 3) Concept development and testing, 4) Marketing strategy development, 5) Business analysis, 6) Product development, and 7) Test marketing. It then discusses commercialization which is the final stage of introducing the new product to the market. The document also discusses 5 common pricing strategies used by companies: cost-plus pricing, competitive pricing, value-based pricing, price skimming, and penetration pricing.

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Gunjan
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113 views7 pages

International Marketing 2

The document provides information about new product development stages. It discusses the 7 main stages: 1) Idea generation, 2) Idea screening, 3) Concept development and testing, 4) Marketing strategy development, 5) Business analysis, 6) Product development, and 7) Test marketing. It then discusses commercialization which is the final stage of introducing the new product to the market. The document also discusses 5 common pricing strategies used by companies: cost-plus pricing, competitive pricing, value-based pricing, price skimming, and penetration pricing.

Uploaded by

Gunjan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 7

LINGAYAS VIDYAPEETH

SCHOOL OF COMMERCE
AND MANAGEMENT

ASSIGNMENT
OF
INTERNATIONAL
MARKETING

Submitted To- Submitted By-


Ms. Alisha Gunjan
16BMI24M

1
QUESTION:1 Explain the concept of New Product
Development. Explain it with the help of stages involved.
ANSWER:
 New product development
New product development (NPD) is the process of bringing a
new product to the marketplace. Your business may need to
engage in this process due to changes in consumer
preferences, increasing competition and advances in
technology or to capitalize on a new opportunity. Innovative
businesses thrive by understanding what their market wants,
making smart product improvements, and developing new
products that meet and exceed their customers' expectations.
New Product Development Steps
1)Idea generation - The new product development process
starts with idea generation. Idea generation refers to the
systematic search for new-product ideas. Typically, a
company generates hundreds of ideas, maybe even
thousands, to find a handful of good ones in the end.

2)Idea screening - The next step in the new product


development process is idea screening. Idea screening

2
means nothing else than filtering the ideas to pick out
good ones. In other words, all ideas generated are
screened to spot good ones and drop poor ones as soon as
possible. While the purpose of idea generation was to
create a large number of ideas, the purpose of the
succeeding stages is to reduce that number. The reason is
that product development costs rise greatly in later stages.
Therefore, the company would like to go ahead only with
those product ideas that will turn into profitable products.
Dropping the poor ideas as soon as possible is,
consequently, of crucial importance.
3)Concept development and Testing - To go on in the new
product development process, attractive ideas must be
developed into a product concept. A product concept is a
detailed version of the new-product idea stated in
meaningful consumer terms. You should distinguish
 A product idea à an idea for a possible product
 A product concept à a detailed version of the idea
stated in meaningful consumer terms
 A product image à the way consumers perceive an
actual or potential product.

4)Marketing strategy development - The marketing strategy


statement consists of three parts and should be formulated
carefully:
3
 A description of the target market, the planned
value proposition, and the sales, market share and
profit goals for the first few years`
 An outline of the product’s planned price,
distribution and marketing budget for the first year
 The planned long-term sales, profit goals and the
marketing mix strategy.

5)Business analysis - Once decided upon a product concept


and marketing strategy, management can evaluate the
business attractiveness of the proposed new product. The
fifth step in the new product development process involves
a review of the sales, costs and profit projections for the
new product to find out whether these factors satisfy the
company’s objectives. If they do, the product can be
moved on to the product development stage.

6)Product development - The new product development


process goes on with the actual product development. Up
to this point, for many new product concepts, there may
exist only a word description, a drawing or perhaps a
rough prototype. But if the product concept passes the
business test, it must be developed into a physical product
to ensure that the product idea can be turned into a
workable market offering. The problem is, though, that at

4
this stage, R&D and engineering costs cause a huge jump
in investment.

7)Test marketing - The last stage before commercialization


in the new product development process is test marketing.
In this stage of the new product development process, the
product and its proposed marketing programmed are
tested in realistic market settings. Therefore, test
marketing gives the marketer experience with marketing
the product before going to the great expense of full
introduction. In fact, it allows the company to test the
product and its entire marketing programmed, including
targeting and positioning strategy, advertising,
distributions, packaging etc. before the full investment is
made.
Commercialization - Test marketing has given management
the information needed to make the final decision: launch or
do not launch the new product. The final stage in the new
product development process is commercialization.
Commercialization means nothing else than introducing a new
product into the market. At this point, the highest costs are
incurred: the company may need to build or rent a
manufacturing facility. Large amounts may be spent on
advertising, sales promotion and other marketing efforts in the
first year.

5
QUESTION:2 What are different pricing strategies?
ANSWER:
Pricing strategy
Pricing strategy refers to method companies use to price
their products or services. Almost all companies, large or
small, base the price of their products and services on
production, labor and advertising expenses and then add
on a certain percentage so they can make a profit. There
are several different pricing strategies, such as
penetration pricing, price skimming, discount pricing,
product life cycle pricing and even competitive pricing.
5 pricing strategies are:
1)Cost-plus pricing- simply calculating your costs and
adding a mark-up
2)Competitive pricing- setting a price based on what the
competition charges
3)Value-based pricing- setting a price based on how much
the customer believes what you’re selling is worth
4)Price skimming- setting a high price and lowering it as
the market evolves

6
5) Penetration pricing- setting a low price to enter a
competitive market and raising it later

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