**7. Conclusion and suggestions**

Products released to the market to meet customers' needs are changing almost instantaneously, while consumer needs are not changing. NPD which is the changing process of these products is not only a responsibility of research and development departments of businesses but also requires the cooperation of design, engineering, production and marketing departments. The NPD ideas coming from the channels like the universities, consumers, employees, rival company examples, etc. are first assessed by research and development department, then an NPD idea is created by the department, the idea is designed by the design department, its prototype definition and technical details are arranged by the engineering department and it is launched by the marketing department. NPD is required for the marketing of products which will meet customer needs or requirements to satisfy the customers beyond their expectations. The success of the newly developed product would begin with the success of planning and implementation of the new product launch and maintenance of the sustainability of this success by the marketing department. The duty of marketing to make the new product successful requires the transition from 7P to 7 N that summarizes the marketing mix elements as new product, new price, new place, new promotion, new physical environment, new process and new people. Thus, with the new product, the price, the place, the promotion, the physical environment, the process and the people elements should be replanned and re-implemented. 7 N product life cycle (PLC) should be adapted at each stage of the marketing strategy. As a matter of fact, incorrect marketing practices such as incorrect price, insufficient promotion, distribution to the wrong market segment, presentation of product to the consumer in an unattractive design and environment, not using the interdisciplinary team work in the process and not being able to enter to the market before competitors are known as reasons for failure of the new product.

Literature has shown that there are various elements affecting success of a new product.

**1.** *The need for interdisciplinary inputs*. It was shown in the literature that an interdisciplinary teamwork is necessary for the success of a new product. Because, new product development process involves several works and issues which need to be undertaken by different kinds of professions. The lack of a profession in the team of new product development process may lead to overlooking of important issues which will affect the success of a new

**2.** *The need for quality inputs to the process*. In addition to having both technical and marketing information accurately and timely, updating of this information is also crucial for the suc-

**3.** *The need for speed in the process*. The new product needs to be released to the market and produced quickly to collect a significant share of profit from a new product before competitors enter to the market because history has shown that a good chunk of profits is gained by the first business operated in the market at the early stages of new product life cycle while others share the rest (of profit) left by the first business in the market. However, businesses should be cautious about making a speed introduction and production of new product to

Kotler and Armstrong bring several reasons explaining why do so many new products fail, while there are clear instructions about how a new product development can be successful. The first reason is overestimating market size which will cause to overproduction resulting in profit loss. The second reason is poor design of a new product that will not be attractive as much as for potential customers. The third reason is producing it for the wrong segment of market such as selling a luxury product in an economically struggling region. The fourth reason is releasing new product to the market at a wrong time, for example, producing a high-tech product for the use of people at the time of an economic bottleneck when people hesitate spending money for products not necessary for daily needs. The fifth reason is pricing it wrongly, too expensive or too cheap which both will lead to loss in profit. The sixth reason is poor advertisement which will prevent a new product being known by the right customers [2].

Products released to the market to meet customers' needs are changing almost instantaneously, while consumer needs are not changing. NPD which is the changing process of these products is not only a responsibility of research and development departments of businesses but also requires the cooperation of design, engineering, production and marketing departments. The NPD ideas coming from the channels like the universities, consumers, employees, rival company examples, etc. are first assessed by research and development department, then an NPD idea is created by the department, the idea is designed by the design department, its prototype definition and technical details are arranged by the engineering department and it is launched by the marketing department. NPD is required for the marketing of products which will meet

These elements are categorized under three groups below [19]:

cess of a new product to be coherent to the changes in conditions.

product significantly.

72 Marketing

avoid making mistakes.

**7. Conclusion and suggestions**

New product development for a company is the development of product mix or portfolio. While the product portfolio is developed as important innovations, it can also be developed as product advancement, repositioning of product or product additions. For example, how does the production of a door that includes a face recognition algorithm allowing to recognize faces even from distant locations affect door manufacturer's product portfolio? And, how does production of this kind of door before by competitors affect the sales and market share of the manufacturer? The production of a face recognition door by this manufacturer will enlarge the product portfolio. The production of different varieties of the door such as lock opening, automatic opening, etc. contributes to the length of the product line. The development of locking features such as door opening by a card reading or a device from inside of the lock contributes to the depth of the product line. Not adding this kind of door to the product mix by the door manufacturer although there is a demand by consumers in the target market will lead to a decrease in the market share, or producing it after competitors will lead to loss of taking the best part of the market and increase in the cost of winning the customers lost to the competitors.

Employees should be encouraged to develop new product ideas, consumer needs and wants in addition to new product ideas should be researched and complaints and information collected from consumers should be recorded and then converted to new product ideas. The marketing strategy should be evaluated, business analyses should be carried out for ideas which passed transformation from ideas to production test and found suitable for production and the developed products should be commercialized after the market test phase. Different business departments should work in cooperation in order to achieve the success of the new product. For this purpose, creative and innovative personnel should be employed in R&D, engineering, product design and marketing departments as much as in production department. Inadequate coordination between these departments will result in failure of new product development, and failure of new product development will lead to a financial crisis.

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