Michelson, C. (2008). The Truth about NPD. Brand Strategy, 222, 44-45.

Format: Peer-reviewed article

Type: Experience

Experience level of reader: Fundamental

Annotation: The continuing growth in new product introductions in a shrinking consumer market means that NPD must consider how to engage customers. Being unique is not sufficient to translated into a purchase, it must also be relevant.

Setting(s) to which the reported activities/findings are relevant: Large business, Small business (less than 500 employees), University

Knowledge user(s) to whom the piece of literature may be relevant: Brokers, Manufacturers

Knowledge user level addressed by the literature: Organization

This article uses the Commercial Devices and Services version of the NtK Model

Method: New products must engage consumer interest, so being unique in the sense of new or novel is insufficient. Beyond that, companies must strive for uniqueness in a form that is relevant to the target audience, that has utility in the context of their needs. Doing so generates interest among the target audience. It provides four related benefits: 1) Increased interest in the offering from the related field or industry; 2) Easier to create effective and focused advertising; 3) Usually lower cannibalization — that is the company is less likely to introduce internally competing products since this one is focused on the target audience; 4) The product offering is more believable to the target audience because it is presented in terms and a context they understand.
Experience as head of new product development and innovation in a corporation.
Occurrence of finding within the model: Step 4.2, Step 2.1, Step 1.3

Tip: Influencers on new product success or failure are changing, with social media grows in influence. Younger customers are more highly influenced by recommendations by peers, particularly through social networking. Concept and product development must be conducted in tandem to ensure a good product-concept fit, and to avoid costly changes to product features.
Experience as head of new product development and innovation in a corporation.
Occurrence of finding within the model: Step 7.10