The New Product Process: The Stage-Gate

Plan
Dr.-Ing. Amalia Suzianti, ST, M.Sc.
suzianti@ie.ui.ac.id
amalia.suzianti@alumni.tu-berlin.de

Agenda

The Stage-Gate Model: State of the Art

The Stage-Gate Model: From Discovery to
Launch: Stages and Gates
Product Innovation Process Key Points and
Success factors
Discovery. The Quest for Breakthrough Ideas
The Early Game: From Discovery to
Development

The Stage-Gate Model: State of the Art

One of the most famous systematic product innovation

processes is the Stage-Gate Plan.

It covers the conceptual and operational model of product

development from idea generation to launch and beyond
and it is used as a blue print for managing the new product
generation process

The Stage-Gate breaks the innovation process into a

predetermined set of stages, each stages consisting of a
set of prescribed, cross-functional and parallel
activities.The entrance to each stage is a gate. These gates
control the process and serve as the quality control and
go/kill checkpoints. These stage and gate format leads to
the name Stage-Gate process (see Cooper, 2001a, 129).

The Stage-Gate Model

From Discovery to Launch: Stages

The key stages consist of following processes:

Discovery : pre-work designed to discover and uncover opportunities and generate ideas
Scooping : a quick, preliminary investigation of the project (inclusive technical benefits and market prospects)
Building the Business Case: a much more detailed investigation involving primary research, both market and
technical, leading to a business case, including product and project definition, project justification and a
project plan. It is the critical homework stages, the one that decides if the projects should be broken or continued.
Development : the actual detailed design and development of the new product and the design of the operations
or production process
Testing and Validation : tests or trials in the marketplace, lab and plant to verify and validate the proposed
new product and its marketing and production / operations
Launch: commercialisation, beginning of full operations or production, marketing and selling.

The Stage-Gate Model

From
Discovery
to Launch:
Gates
The typical Gates
in Stage-Gate
process consists
of:

Idea Screen: The point where the project is born. It is a gentle screen and amounts to subjecting the
a handful of key must meet and should meet criteria which often deal with strategic alignment,
project feasibility, magnitude of opportunity and market attractiveness, product advantage, ability t
the firms resources and fit with company policies.
Second Screen: This is essentially a repeat of Gate 1; the project is re-evaluated based on the inform
obtained in stage 1. Here additional should-meet criteria may be considered, dealing with sales forc
customer reaction to the proposed product and potential legal, technical and regulatory killer varia
all the result of new date gathered during stage 1.
Go to development: This is the final gate prior to the Development Stage, the decision point at which
can be killed or can be continued. Gate 3 also yields a sign off of the product and project definition
commit of the financial expenses.
Go to Testing: This post-development review is a check on the progress and the continued attractive
product and project. This gate also revisits the economic question through a revised financial analys
on new and more accurate data. The validation plans for the next stage are approved for immediate
implementation and the detailed marketing and operations plans are reviewed for probable future e
Go to Launch: The final gate opens the door to full commercialisation, market launch and full produc
operations start-up. It is the final point at which the project can still be killed. Criteria for passing the
largely on expected financial return and appropriateness of the launch and operations start-up plans

A Systematic New Product Process:

Key Points
No.
1.

Points
The new product process must be a quality process. There is a clear need for a systematic new product
process to guide and facilitate the new product project from idea to launch.

2.

The process or game plan must be designed to manage risk; a multistage and gate framework is most
appropriate.

3.

Gates are central to the new product process.

4.

Parallel processing balances the need for a complete and quality process with the desire for a speedier
process.

5.

The process requires a cross functional, empowered team headed by a team leader with authority.

6.

The process is market-driven and customer-focused.

7.

Up-front or predevelopment homework is crucial to success and these activities must be built into the
game plan in a consistent and systematic way.

8.

The quest must be for superior differentiated products that offer value to the user.

The Critical Success Factors in Product

Innovation
No.
Success Factors
1.
The number one success factor is a unique superior product: a differentiated product that delivers unique
benefits and superior value to the customer.
2.
A strong market orientation: a market-driven and customer-focused new product process- is critical to success.
3.

Look to the world product: an international orientation in product design, development and target marketing
provides the edge in product innovation.

4.

More predevelopment work: the homework must be done before product development gets under way.

5.

Sharp and early product and project definition is one of the key differences between winning and losing at new
products.
A well-conceived, properly executed launch is central to new product success. And a solid marketing plan is at
the heart of the launch.
The right organisational structure, design and climate are key factors in success.
Top management support doesnt guarantee success, but it sure helps. But many senior managers get it
wrong.
Leveraging core competencies is vital to success: step-out projects tend to fail.
Products aimed at attractive markets do better: market attractiveness is a key project-selection criteria.
Successful businesses build tough Go/Kill decision points into their new product process, where projects really
do get killed: better focus is the result.
New product success is controllable: more emphasis is needed on completeness, consistency and quality of
execution of key tasks from beginning to the end of project.
The resources must be in place: there is no free lunch in product innovation.
Speed is everything, but not at the expense of quality of execution.
Companies that follow a multi stage disciplined new product process such as a Stage-Gate process fare much
better.

6.
7.
8.
9.
10.
11.
12.
13.
14.
15.

Discovery: The Quest for

Breakthrough Ideas (1)

In general, there are two approaches of idea generation.

It could be bottom-up or top down method.
Bottom-up method means that the ideas come from the employee.
From the R&D and technical department, they will try to uncover the
technological possibility, do some experiments and then try to
formalise the new product that might be produced. From the sales
departments, they will try to define the customer requirements, notice
their problems and then try to conclude the potential solutions.
Top-down method means a direction from management side. They will
try to conduct the market research at the beginning and try to
discover the significant customer problem and result in a product road
map or in envisioning a set of new products to be developed in the
future

Discovery: The Quest for

Breakthrough Ideas (2)

Nowadays, the company has realised that the uncovered innovative ideas
could come from outside the company.
One of the source are the customers who at the end directly dealing with
the designed products and know exactly about their performance. From
the customer, the strength and weaknesses of product could be assessed
and even the hidden needs of the customer could be defined in order to
improve the product performance and potentially a new product idea.
The typical method used are: Lead-User Analysis, Product Value Analysis,
Scouting, In-Depth Interview, etc.
Other external source could be superior competitor who is currently
holding the market leader position. From them, the tips of product
success could be discovered from benchmarking method or for the
manufactured products using the reverse engineering method.

Discovery: The Quest for

Breakthrough Ideas (3)

Idea Generation using Creativity Techniques: Brainstorming,

Analogy Method, Random Stimulation, Mapping techniques, TRIZ
Feedback to submitter
Method, etc.

Focal
Person

Stage 1

Gate 1: Idea
Screen

Periodic
Review
&Update

Idea Vault or Bank

-ideas on hold
-dead ideas
Source: Cooper, 2001a, p. 173

Others in
Company

The Early Game: From Discovery to

Development

The stages that included in the early stages are the scooping and
building up the business case as seen on following Figure. There are
also three gates in between that bridge the stages with previous phase
(discovery) and following phase (development). These early phases
also known as fuzzy fronts end because it concludes the abstract into a
The key
physical model of product.
Homework
Idea
Screen

Discovery

Gate1

Generating
Breakthrough
New Product Ideas

Stage1

Second
Screen

stage

Gate2

Stage2

Scoping

Idea Capture & handling system

Preliminary market
Strategic,disruptions in
assessment
customers industry
Preliminary technical
Scenario generation: official and
assessment
alternate scenarios
Preliminary business &
Voice of customer research
financial assessment
Working with lead users
Recommendation & Plans
(innovative customers )
for Step 2
Technology development
(fundamental science) with
direction

Go to
Development
Gate3

Build
Business
Case
User needs and wants study
(voice of customer research)
Competitive analysis
Market analysis
Detailed technical assessment
Manufacturing assessment
Concept testing
Detailed business & financial analysis
Develop Business Case:
-product definition
- project justification
- Project Plans

The Early Game: From Discovery to

Development: 1. Scooping

The first stage covers the quick and inexpensive assessment of the technical merits
of the project and its market prospects. Preliminary market, technical and financial
assessments make up Stage 1

Preliminary market assessment is a rough and general market study. It will review the
commercial prospects of the proposed product in the market. Its task is to find out
quickly about market size, growth, segments, customer needs, interest and
competition with minimal cost (Thomas, 1993, 117, modified for similar reasons). It
assesses market attractiveness and potential, gauges possible product acceptance,
sizes up the competitive situation and sculpts the product (see Cooper, 2001a, 180).

The Early Game: From Discovery to

Development: 1. Scooping

Following are some of the sources of market information that could be

accessed relative inexpensive for market assessment (see Cooper,
2001a, 180-182):

Internet searches : trade magazines, journals, reports, published items

Library : own library, major public library , universitys library
Internal reports : annually reports and surveys
Key customer : interviews the leading users in each firm
Focus groups : handful of customers either consumers or industrial users
Advertisements : competitors advertisements and trade literature
Own people : sales forces and service representatives
Consulting and research firms : multi client and standardised reports
Financial houses : stockbrokers, overview of companies listed on the stock market
Government agencies : report of statistics from government departments
Industry experts : hiring and saving the industry experts knowledge
Editors : knowledge about the industry
Trade associations : valuable market data and channel to other organisations

The Early Game: From Discovery to

Development: 1. Scooping

The preliminary technical assessment subjects the proposed

product to the businesss technical staff, R&D, engineering and
operations for appraisal (see Cooper, 2001a, 183, modified).

The purpose is to establish preliminary rough technical and

product performance objectives and undertake a very preliminary
technical feasibility study and pinpoint possible technical risks.
Specifically the tasks will be include discussions among in house
technical and operation people (occasionally outside experts will
be used), a preliminary literature search, a preliminary patent
search, acquisition and review of competitive literature.

The Early Game: From Discovery to

Development: 1. Scooping

There are some important aspects that should be considered during technical assessment (see
Cooper, 2001a, 183).

Rough product requirements or specification

Technical achievement of the requirements
The chance of product technical feasibility cost and time.
Technological capability to develop the product (decision in house, outsourcing or partner)
Product manufacturability, equipment, cost and probability of cooperation
Involvement of intellectual property and product regulatory issues
The handling of technical risks

In the case of partnering, the knowledge transfers form partners should be regarded. Otherwise
there will be no performance enhancement achieved and only costs a huge risk, costs and missing
skills.
Ultimately to the scooping stages is the preliminary business and financial assessment. The
strategic and competitive rationales are already mapped out and also the competencies
assessment which may identify the necessity of partnering or outsourcing relationship and then
comes the preliminary financial analysis (see Klein, 1998, extended). In this early stage, estimated
of expected sales, costs and requirement are likely to be highly speculative and largely conjectural.
Nonetheless it provided a rough estimation about the spending.

Summary of Stage 1. Scooping

Actions
Preliminary market assessment

Scooping
Quick scooping of the market prospects for the
product: potential, acceptance, requirements, not
detailed market research, detective and desk
research only, relying on readily available sources

Preliminary technical assessment

Conceptual assessment of technical feasibility,

probable technical solution, technical risks,
manufacturability (or source of supply) and
intellectual property issue

Preliminary financial/ business

A sanity check: an extremely rudimentary and quick

assessment

check of the business rationale and financial

prospects; the possible payback period

Recommendation and Plans for Stage 2

A Go/Kill recommendation ; and proposed actions

Plans for Stage 2 (timeline; resources, people and
person-days; deliverables and date for next gate)

Stage 2: Building the Business Case

Market
Analysis

Detailed
Tech.Asses.
Translation

Project Plan:
Development Plan
Tentative test, Marketing &
Production Plan

Mit Costs
& Production
Equipt
Needs
Financial

Competitive
Analysis

Customer
with list:
Prod. req.

Tech.Feas.
Product
Concept

Analysis

Expected
Sales &
Revenues
User
Needs &
Wants
study

Concept
Test:
Purchase
Intent

Project Justification
Financial, Risk & Business
Assessment

Product definition:
Target Mkt, Concept,
Position & Benefits
Requirements & Specs

Patent Analysis

The purpose of patent analysis is to identify the latest development of

technology / product which are relevant to the proposed product
innovation.
It is also very useful to analyse the technology advancement of the
competitor and therefore, helps the company to develop a product
innovation with competitive advantage accordingly.
Identify area of
analysis

Define research
medium

Select patent

Define research
medium

Analyse patents

Conduct research

Clasify relevant
patents

Design of Quality and Technology

The design of quality and appropriate technology for product innovation

are crucial in the product development process.

The common methods used are:

Quality Funtion Deployment

Failure Mode and Effect Analysis
7 Tools of Quality
Technology roadmapping

Summary of Stage 2.
Building the Business Case (1)
Actions
User needs-and-wants study

Scooping
Voice of customer research to determine product requirements. Determines what value is and what a customer
benefit is; seeks to define a winning product concept from customers perspective. Probes customer needs, wants
and preferences, choice criteria, likes, dislikes and trade-offs regarding product requirements and design; also the
customers use system and products value-in-use (economics); seeks insights into competitive product strengths
and weaknesses.

Competitive analysis

A detailed look at the competition-both direct and indirect. Determines who they are, product strengths and
weaknesses, anticipated future products, pricing, competitors other strengths and weaknesses, how they compete
and their performance.

Market analysis

Pulls together all market information from the two studies above plus secondary sources. Determine market size,
buyer behaviour and competitive situation. Also relies on similar sources as in Stage 1, only much more in depth.

Detailed technical assessment

Translates these market inputs into a technical feasible product design or concept (on paper). May involve some
physical technical work (modelling, lab work) and also techniques such as Quality Function Deployment (QFD). Maps
out the technical solution and technical route; highlights technical risks and solutions; reviews intellectual property
issues and develops IP strategy; assesses possible technical partners and develops partnering strategy. Also looks in
depth at manufacturability and source of supply: production route, costs and capital (equipment) requirements.

Summary of Stage 2.
Building the Business Case (2)
Actions

Scooping

Concept testing

The final market test prior to full commitment to develop the product. Tests the proposed product concept with the
customer (product concept, model, virtual prototype). Involves face-to-face interviews; gauges interest, liking,
preference, purchase intent and price sensitivity.

Financial/business analysis

Looks at the business rationale for the project. Includes strategic assessment (fit and impact). Also a core
competencies assessment and partnering (or out-sourcing) strategy is mapped out, along with the role of
international units. Finally a detailed financial analysis developed: NPV, IRR and sensitivity analysis.

Plans of actions

Develops recommendation for project (Go/Kill) and a detailed Action Plan for Stage 3 (Development Plan); also
tentative plans for Stage 4, Testing and Stage 5 (both preliminary Marketing and Operations Plans). A launch date is
specified.

Concept Testing

The market test prior to commitment to develop the product. Tests the proposed
product concept with the customer usually in a form of virtual prototype (design
sketch) or rapid prototype. Involves face-to-face interviews; gauges interest, liking,
preference, purchase intent and price sensitivity.

One of the common methods used for concept testing is Conjoint analysis

Concept Testing: Conjoint analysis

Conjoint analysis as a methodology allows a subset of the possible

combinations of product attributes to determine the relative importance of
each attribute in a decision making process. It is best suited for
understanding consumers reactions to and evaluations of predetermined
attribute combinations that represents potential products.
Utility, which is the conceptual basis for measuring value in conjoint
analysis, is a subjective judgment of preference unique to the individual.
It encompasses all product features, both tangible and intangible, and as
such is a measure of overall preference.
As conjoint analysis copes with both real and hypothetical products, it has
been adopted widely in new product development process. It is really
helpful to evaluate new product concept, analyse its feasibility and place it
in the desired target market.

Rapid Prototyping

Rapid Prototyping is a procedure of transforming the virtual designs from

computer added design into 3D prototype model part.

One of the common procedures is 3D Printing which use materials such as

plastics, gips-ceramics, photopolymer.

Business and Financial Analysis

Business Prioritisation Criteria

Risk-Reward Diagrams
Price Estimation
Target Market Estimation
Break Even Point Estimation

Business Prioritisation Criteria

Risk-Reward Diagram: Bubble Diagram

Risk-Reward Diagram: 3M Bubble

Diagram

Risk-Reward Diagram: 3D Bubble

Diagram

Risk-Reward Diagram using Scored

Axes

STAGE 4

BETA TESTING AND MARKET TESTING

PROTOTYPING

Prototyping distinguished by dimensional perspectives:

Physical and analytical prototypes

Physical prototypes: tangible model of a product
Analytical prototype: non-tangible model of a product

Comprehensive and focused prototypes

Comprehensive prototype: full-scale, fully operational of a
product
Focused prototype: focused on one or few attributes of a
product

Milestones in Prototyping

Alpha
Prototyp
e

Beta
Prototyp
e

Gamma
(PreProductio
n)
Prototype

Release
To
MFG

Beta Testing (1)

Prototype testing (beta testing) is a process of testing the beta

prototype of a product by the external users (customers)
The purpose is to measure capacity of a product to meet its
intended objectives (functionality and usability testing), undertake
technical feasibility study and pinpoint possible technical risks.
The feedbacks from the external users will be discussed by in
house technical and operation people (occasionally outside experts
will be used) to finalise the product (can be processed through
preproduction prototype, engineering prototype or go directly to
production)
Benefits of prototype testing:
Confirm the feasibility of a product proposal for launch
Reduce the risk of product failure
Foster active participation of users to develop high quality

Beta testing (2)

Beta testing is a prerequisite and mostly implemented by:

Software products
Web and computer applications
Consumer goods
Foods
Manufacturing products

Market testing

Market testing comprises the activity of testing a beta

prototype of a product

The purpose is to gather the opinion of the market about the

product, learn about the market size and customer and
distribution channel relationships

The size of market testing area depends on the budget and risk
of investments, time and the innovative value of a product

The benefit of market testing is to minimise the risks of product

failure in the market

Methods of Market testing

Sales wave research: measure the effectivity of advertisement

(promotion activities) to purchase intent
Example: Giving free sample of products and discounts for
products, and notes the customers who in the end buy the
products with their opinion
Simulated test marketing: measure the preference of the new
product compare to competitors product
Controlled test marketing: test the product for marketing with a
specific scenario (in a specified location, areas, product
placement, product displays and promotion)
Test market: test the product for marketing with the same
conditions as product launch

Validation of the Product and Go-No Go

Decision

Having the product tested in functionality and market prospect,

the next step is to analyse the feasibility of the product for
launch. This analysis is mainly based on financial criteria.
If the product passes the criteria, the product can be released
to launch and production and operation plan can be started.

Pass/Kill:
Project is evaluated
against Must Meet &
Should Meet Criteria.
Does the NPV,IRR &
Project Attractiveness
Score pass hurdles?

Pass

Kill

Prioritisation:
Project Attractiveness
Score & NPV compared
to Active Projects &
Projects on Hold
Resources are
allocated

Go-is
resourced;
becomes Active
Project

Placed
On hold

Technical Implementation

System and process planning

Operational planning
Resource allocation
Capacity planning
Production planning
Marketing planning

STAGE 5

LAUNCH AND COMMERCIALISATION

Into the Market: Setting up the Marketing

Plan

The launching of the new product should be accompanied with

the right marketing plan. It summarises companys objectives,
strategies and programs

The development of a full marketing plan occurs

simultaneously with product development to emphasize that a
formal marketing plan should be in place before the product is
ready for market introduction.

This plan guides the products entry to the market. Without an

established marketing plan it would be difficult for the product
to achieve the market success. Therefore this process also
considered as a crucial phase in the new product development
phase.

Setting marketing objectives

The marketing objectives give the direction to the company to achieve

their goals. It helps the manager to stay remain on the line and taking
decisions that meet those objectives. The marketing objectives are
also work as the standard for measurement. Milestones or benchmarks
are critical during the Launching stage when the corrections are
necessary (see Cooper, 2001a, 281).
Normally it covers also the financial objectives such as unit or dollar
sales of the product in a period after lunch, share per year and product
profitability (profit margins, annual profits, payback period).
By the launching time the marketing objectives have performed
several changes from the project start. It adopted the views form
other department such as logistic, financial, research and
development and so forth. And then all of these views collected and
analysed in order to find the feasible plan and strategy to be
performed. At the end the marketing plan should accommodate the
needs and the goals from all the departments.

The Steps of Developing Marketing Plan fo

Product Innovation
1.

Diagnose and Conceptualize Key Market Factors : Through a study of market opportunity for
the new product, identify and conceptually define the m ajor factors (key variables and
stakeholders) in the new product situation hypothesized to influence demand.

2.

Formulate Spreadsheet and Submodels of Major Factors : Using the identified factors to
estimate market size, growth and penetration, formulate spreadsheet and other submodels
to guide data collection.

3.

Collect Data on Key Variables : Collect data for the various models to develop estimates
of the trends or expected directions on the major facto rs and their interactions over the
new product planning horizon.

4.

Analyze Data and Segment Market : Analyze the data collected, with emphasis on the
segmentation structure of the market and possible altern ative concepts for segments.

5.

Develop Enhanced New Product Scenarios : Focusing on a selected segment, create a

new product scenario of base case and alternative futur es from trends and assumptions
about the effects of major factors on the new product.

6.

Estimate Market Potential and Penetration : In the context of the new product scenario,
use the spreadsheet model to develop estimates of marke t potential and penetration under
varying assumptions.

7.

Continually Update Models and Estimates : Incorporate new data and experience into the
product models and scenarios over the cycle of product development and continually
update market opportunity forecasts.

The Situation Size-Up

There situation size up should be performed at every phase of

marketing planning. It analyses both the internal and external
environmental condition and its contribution to the action
development.
External condition:

Market analysis: market overview, market segments, buyer

behaviour and competition

Macro environmental analysis: economic, political, legislative and

legal situation, demographic and social trends, and technological
development
Internal condition:

SWOT Analysis

Defining the target market

The segmentation analysis should yield a number of potential market

segments. From this analysis is expected that the product may be fit to
two or more segments. In order to achieve these expectation there are
several criteria that should be considered:
Segment attractiveness : choosing the most attractive segment in term
of its market size, growth and future potential
Competitive situation : choosing the segment which has the least and
weakest competition
Fit: finding out the best fit between the needs, wants and preferences of
each segment and the benefits, features and technological possibilities of
the product.
Ease of access: choosing the segment with easiest access in its selling
effort, distribution channel, etc.
Relative advantage: choosing the segment with greatest advantage
over competitors in terms of product features and benefit.
Profitability: choosing the segment which most likely meets the sales
and profits objectives.

Product Strategy & Marketing

Communication

Product Strategy covers the positioning of the new product in the

market, assessment of its benefits and value proposition, and
translation of these benefits and the value proposition into features,
attributes and product requirements.
The product positioning is all about the matter of combining the
market segmentation and product differentiation. That means that the
company should consider the customer opinion about the product
position compares to competitor and also set up the product
statement which clearly differentiates the product from others. The
statement should be clear, meaningful and concise.
Although the company has the best product with reasonable price,
without the proper advertising and marketing communication the
product will not achieve market success. That is why currently ecommunication holds an important role in determining the product
success.

Marketing Plan for Product Innovation:

Program Review (1)
Product decisions (assuming segmentation and positioning strategy)

Core product concept

Features/benefits (functional, emotional, aesthetic)

Engineering/design elements (based on translation of product fea tures)

Production/operations components (based on engineering/ design e lements)

Package (product protection, usage, communication, design, label , decomposition)

Brand name (corporate name, family brand, new product brand, log o, trade mark)

Product line (styles, features, price points)

Legal (trade secrets, patents, copyrights, warranties)

Other
Pricing decision

Overall price

Margins

Price structure (geography, bundled vs. unbundled by features an d services, seasonality)

Price promotions (discounts, allowances, premiums)

Other
Distribution decisions

Channel selection (direct, distributors, wholesalers, brokers, agents, retailers)

Geographic scope (global, regional, national, state, city, commu nity)

Selectivity (intensive, selective, exclusive)

Logistics (inventory, warehousing, order processing)

Other

Marketing Plan for Product Innovation:

Program Review (2)
Communication decisions

Message goals (awareness, interest, knowledge, preference, inten tion, action)

Budgeting (quantity of information, cost of information)

Scheduling (placement, timing)

Creativity (emotional, logical, resonance, aesthetic)

Media

Advertising (message goals, creativity, budget, schedule)

Sales promotion (message goals, type, creativity, budget, size, schedule)

Sales force (message goals, creativity, budget, size, recruitmen t, training, compensation,
motivation, evaluation)

Telemarketing (message goals, creativity, budget, schedule)

Public relations (message goals, creativity, budget, schedule)

Effectiveness measures (unaided recall, aided recall, recognitio n, knowledge, trial, repeat)
Other

Customer service decisions

Pre-sale service (financing, trials, planning, education)

Post-sale service ( unpackaging , installation, setup, training, documentation, help lines)

Relationship building (complaint handling, repairs, replacement policy, extras)

Other

Correlation between Marketing Launch

Plan
and Stage-Gate Process
New Product Process
Planning Tasks
Idea
Idea generation
Idea screening (Gate1)

1. Scooping
Preliminary market, technical and
financial assessment

2. Build Business Ca se
User needs-and-wants studies
Competitive and market analysis
Concept tests
Detailed technical assessment
Business and financial analysis

Corresponding Marketing Planning Tasks

First cut at...
marketing objectives
size-up (analysis) of the market
target market definition
defining product concept and strategy
assesing market and sales potential
Define precisely...
target market and positioning strategy
product requirements
product benefits and features
target price
expected sales and revenues
First cut at...
preliminary market launch plan
Initial customer feedback
rapid prototype and tests

3. Development
Product development
Iterations with customers
Develop test marketing
and production plans

4. Testing and Validation

Full customer tests
Test market
Trial production

5. Launch
Implement production
and marketing plans

Develop detailed market launch plan:

marketing communications
pricing,discounts,margins
salesforce and distribution
customer service and support
Test the Marketing Plan:
product tests with customers (to
validate product and confirm purchase
intent)
test market or trial sell
revise product and supporting element
of marketing mix
finalize product and market launch plan
Implement Market Launch Plan
Measure, control and adjust Plan