Question

Which of the following stages of the new-product development process is the first filter, which serves to eliminate new-product ideas that are inconsistent with the organization’s new-product strategy or are obviously inappropriate for some other reason? Question 5 options: a) Applied diffusion b) Introductory diffusion c) Business analysis d) Test marketing e) Idea screening.

Answer 1

Answer:

The answer is: E) Idea screening

Explanation:

Idea screening is the second stage (comes after idea generation) of the new product development process. Its main purpose is to select "good ideas" and filter out "bad ideas".

The following questions usually help in defining what ideas can classify as good or bad.  

1. Do we really need to introduce a new product?
2. Can our existing facilities produce the new product, or what is needed for them to be able to?
3. Can we sell the new product with our existing marketing network, or what do they need to be able to do so?
4. When will the new product generate profit?

Many times the concept of good or bad idea depends on the organization itself. If the answers to the questions above are positive and the company is able to go along with the project, then the new product should continue to stage 3 (concept testing).