The Marketing Book 5th Edition

Screening

Concept test

Successful?

Business

analysis

Reformulate

No – modification

possible

No – new opportunity spotted

No – new idea emerges

No – abandon

328 The Marketing Book

no clear beginning, middle and end to the NPD
process. For example, from one idea, several
product concept variants may be developed,
each of which might be pursued. Also, as an
idea crystallizes, the developers may assess the
nature of the market need more easily, and the
technical and production costs become more
readily identified and evaluated.

Iteration

The iterative nature of the NPD process results
from the fact that each stage or phase of
development can produce numerous outputs
which implicate both previous development
work and future development progress. Using
the model provided by Booz Allen Hamilton, if a
new product concept fails the concept test, then
there is no guidance as to what might happen
next. In reality, different outcomes may result
from a failed concept test, as discussed below:

 A new idea. It is possible that, although the
original concept is faulty, a better one is found
through the concept tests; it would then
re-enter the development process at the
screening stage.
 A new customer. Alternatively, a new customer
may be identified through the concept testing

stage, since the objective of concept testing is

to be alert to customer needs when

formulating a new product. Any new

customers would then feed into the idea

generation and screening process. Figure 12.4

shows these and other possibilities and

illustrates how, viewed as linear or sequential,

the BAH model is inadequate, particularly

regarding up-front activities.

The inclusion of third parties in the

process

Another criticism of the ‘traditional’ process

model forwarded by BAH and others is that it

fails to show the importance of parties external

to the firm who can have a decided impact on

the success of NPD. Research by Littler et al.

(1995) showed that ‘collaborative’ product

development, which may include suppliers,

customers and even, in some instances, competi-

tors, were common in industries such as tele-

communications, and Eisenhardt and Tabrizi

(1994), studying the computing industry,

revealed that developments which involved

suppliers could help accelerate development

time. In the Discovery example cited above,

‘outside’ parties such as suppliers were brought

Figure 12.4 Iteration in the NPD process