Stage 4: Concept Testing
Concept testing gives essential information on product attributes within different consumer behavioral aspects. It aims at finding out the consumers' reactions toward the new product, and usually it is carried out in focus groups. If most of the consumers like the product, then business analysis can be done.
Stage 5: Business Analysis
Business analysis is a very important step in NPD. Here, the company attempts to determine whether the new product can be commercially profitable. The company studies the new product from the business point of view. If the new product is likely to be profitable, it will be accepted; otherwise, it will be rejected.
Stage 6: Product Development
During this stage, the forwarded product ideas that successfully met the scrutiny of the previous stages are translated into actual product offerings, and then turned into actual physical assembly. Various projections of product offerings have to be analyzed. The company has decided to introduce the new product in the market. It takes all necessary steps to produce and distribute the new product, such as accomplishing the production plan, distribution plan, financial plan, and advertising plan for the new product.
Development teams should include people from a diverse range of functions and should include suppliers and customers to improve the project's chances of maximizing the fit with customer requirements while reducing cycle time and potentially reducing costs (Schilling and Hill 1998).