- Technical development in laboratory
- Production of prototype
- Carried out by research and development department
- Test marketing of product
- Less expensive to make mistakes on smaller scale
- Launch and commercialisation
- Solve problems found during test marketing
- Decide on marketing package it will use to give the product launch the greatest chance of success
Constraints on new product development
- Availability of finance and resources
- Profit margins squeezed
- Financial & HR unable to develop new products
- Cost of developing new products may be prohibitive
- Less time to recover development ...