new product development

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A marketing procedure in which new ideas are developed into viable new products or extensions to existing products or product ranges. New ideas, which are generated either internally (e.g. by scientific research) or by feedback from consumers, are first screened for prima facie viability; the few that remain are further reduced by concept tests and detailed analysis of their potential profitability. Any ideas that survive these obstacles are subjected to extensive product development. Prototypes are made and tested within the company and among consumers, and improvements made. This cycle is repeated until satisfactory marketing research results are obtained, when the new product will be launched (possibly at first in a restricted area; see test marketing). See also new-products committee.

New product development.

Subjects: Business and Management.

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