Definition of new product development

preparation for full-scale manufacturing of a product not previously offered by that marketer, including these activities: conceptualization; concept testing and approval; research and development; prototype testing; economic and market research; and decision making with regard to positioning, pricing, packaging, distribution, and promotion. A new product may be a minor or great variation on an existing brand, a true product innovation, or an imitation of a product already on the market. New product development is necessary to maintain market share because demand for most brands or products tends to decline over time. New product development is also a necessary response to new technology and changing market conditions. New product development may be handled by a dedicated department within the company or may be part of each brand manager's responsibilities.