BAHIR DAR UNIVERSTIY

COLLEGE OF BUSINESS AND ECONOMICS

AN ASSIGNMENT OF TOURISM PRODUCT DEVELOPMENT AND INNOVATION: REVIEW ARTICLE ON MODELS

Contents
Table of content..........................................................................................................................................................................................i
Introduction................................................................................................................................................................................................1
Models of new product development.......................................................................................................................................................2
Conclusion..................................................................................................................................................................................................4
References...................................................................................................................................................................................................5
Introduction
Before directly processed to models of new product development, let’s see conceptual meaning of development. It is a process that
creates amplification, advancement, positive modify or the addition of physical , economic , environmental , social and demographic
components .it is a rise in the level and quality of life of the population , and creation or expansion of local regional income and
employment opportunities , without damaging the resources of the environment(Browning & Ramasesh, 2007) . New product
Development is visible and useful not necessarily immediately, and includes an aspect of quality change and foundation of conditions
for a continuation of that change.

Different scholars defined new product development in poles apart ways in different times but many of them stated as, new product
development is the process of bringing a new product to the marketplace. New Product development usually follows a process
estranged into stages, phases or steps, by which a company conceives a new product idea and then researches, plans, designs,
prototypes, and tests it, before launching it into the markets .Your business may need to engage in this process due to changes in
consumer preferences, increasing competition and advances in technology or to capitalize on a new opportunity.

In the competitive market we need to have excellent models of new product development to be beneficiary and a number one leading
in the existing market and fraternize in the future. Producing similar and accustomed product is not advisable and do not enable
producers/manufacturers to get the desired or expected profit. Hence, producers/manufacturers need to have outline or produce a new
product models for the market. Development of new product is ought to be based on critical thinking, a strong market research,
enquires and follow systematic procedure. There are many Models on new product development; some of them are clarified briefly in
the following section based on different published articles. The development of new product development in a given company or
organization has both negative and positive impacts and it has its own procedures or process before delivered to the market.
Models of new product development
There are many models on new product development , those are : models on new tourism product development , models on new
engineering product development , models on new marketing product development , models on new agricultural product development
and others. But for the sake of this assignment I had reviewed the general one which is related to our program.

Developing products, modifying actual ones, and eliminating those that are no longer makes a positive contribution to the
organization’s or company’s production performance are core actions for production management; new product development is the
overall quality aspect improvement and progress, change of tangible and intangible products in to modernized way and providing
something which is new for users( M.J.Baker , M (1983).

New product development is a multifaceted and significant activity, with only a low rate of commercial success. In order to minimize
new product development uncertainties or hazards a project or company needs to go through a wide-ranging process before it can
commence a new product in the marketplace. In past, this process is split up into a number of phases: idea generation,
screening/evaluation, concept development and testing, marketing strategy development, marketing testing and
commercialization(Nijssen & Lieshout, 1995).

New product development is a series of steps and actions that a business uses to develop, create, produce, and market a product. In
order to assure the development, testing and consideration of new products on the market and the growth or survival of the business,
this procedure is used (Yin & Zhang, 2021).

New product development is a design, innovation of fresh and up to date products which is not available in the surrounding area and
elsewhere. And follows a process divided into stages, phases or steps, by which a company conceives a new product idea and then
researches, plans, designs, prototypes, and tests it, before launching it into market (Carter, 2022).
The introduction of new products development continues to be a critical business activity to all companies, both consumer and
business marketing-oriented. The development of new products has a lot of benefits these are : a means to target new markets ,
increase market share , sell more and increase revenue streams , enables costs to be cut ,helps in improving the satisfaction of the
consumers, margins to be increased and ultimately more profits to be made (Hanna et al., 1995).

The development of a new product by a business starts when there is a need for a new product, whether it is as a result of the
development of new technology, the advent of a rival product, or a modification to the legal system already in place. It ends when the
product is finally released onto the market. A business or firm may move forward with the development of a new product whether or
not it is a part of a market that is changing quickly due to technology. This includes changes in the market's structure as well as in
consumer behavior and attitude. Those new products may be based on other already existing ones and act as a complement or
improvement to existing offerings or may be totally new products based on new technology without the need of support from others
(stand alone products (Osborne, 2002).

New product development can act as a catalyst for the business to expand and generate a profit. New products development can also
open up new markets and increase market shares, which help companies, fend off competition. Therefore, it comes as no surprise that
throughout industry In order to shorten time to market, gain access to new technology, and create more and better products, one of the
main areas of concentration for businesses is new product development. Because of this, the routine creation of new items has the
potential to satisfy clients and satisfy the demands of a market that is constantly changing (OWENS, 2004).

New product development is one of the avenues of enlarging the size of the product port folio of any organization, increasing its sales
volume and enlarging its financial strength. It determines both the levels of economic growth and standard of living of the citizens; it
has been seen as the life blood of any organization. This is because seizing new opportunities as they emerge is a way to profits. This
means that a firm with successful new products development gives it the chance of creaming off large profit before effective
competition develops(Awa, 2010).
New product development requires deep and brainstorming discussion, survey and research, patience, energetic and intellectual man
power and bringing or creating new product is very testing. Developing new product sometimes affects existing products negatively.
when new product is developed , it is difficult to launch; some of the most common challenges to develop new product are: ideation,
market viability, product roadmap problems, work flow management; product engineering issue, pricing policy, the pace of
innovation, time to market :unforeseen circumstance, legacy systems, hiring delays and Compliance issues(Wind & Mahajan, 1997).

Conclusion
From the above review of articles point of view, I concluded that, new product development is the way of idea generation,
selection/valuation, concept development and testing, marketing strategy development, marketing testing and commercialization of a
new products which was not exist and used somewhere; it is a dynamic and lengthy process ranging from idea generation through
product launch. New product development brings and fosters interests of customers and boosts the income of producers or
manufacturers.

New product development is essential to provide something new for consumer, increase market share, sell more and increase revenue
stream; helps to improve the satisfaction of the consumers, act as facilitator for business, to expand and generate more profit; create
more and better products, increasing competition, Technological advancement, New opportunities (growth and development); Risk
diversification, To increase company brand reputation and to utilize excess capacity.
Developing new products are not an easy task; it requires a continuous assessment of the market and market intelligences. Developing
new products is expensive and risky, consumers might not use new products in initial stage and producers may go through loss in the
market. Developing new products affects uneducated persons; reduce manual labor force. Hence, manufactures/producers before
producing new products in bulk: they should promote their products usage, instructions, ingredients, and other important things as
well as convince consumers to buy the new products. Therefore, before the commencement of new product development, there
should have evaluations and assessment of the product about its impact on the people, environment and others.
References
Awa, H. O. (2010). Democratizing the New Product Development Process: A New Dimension of Value Creation and Marketing
Concept. International Business Research, 3(2). https://doi.org/10.5539/ibr.v3n2p49
Browning, T. R., & Ramasesh, R. V. (2007). A survey of activity network-based process models for managing product development
projects. Production and Operations Management, 16(2), 217–240. https://doi.org/10.1111/j.1937-5956.2007.tb00177.x
Carter, J. (2022). The Best New Product Development Process [Definitive Guide]. Https://Www.Tcgen.Com/.
https://www.tcgen.com/product-development/process/
Hanna, N., Ayers, D. J., Ridnour, R. E., & Gordon, G. L. (1995). New product development practices in consumer versus business
products organizations. Journal of Product & Brand Management, 4(1), 33–55. https://doi.org/10.1108/10610429510083749
M.J.Baker , M. (1983). N ew-product. Michael J. Baker and The Macmillan Press Ltd 1993, 164–165.
Nijssen, E. J., & Lieshout, K. F. M. (1995). Awareness, use and effectiveness of models and methods for new product development.
European Journal of Marketing, 29(10), 27–44. https://doi.org/10.1108/03090569510098483
Osborne, R. (2002). New product development. Industry Week, 251(4), 65. https://doi.org/10.4324/9780080496405-22
OWENS, J. (2004). An Evaluation of Organisational Groundwork and Learning Objectives for New Product Development. Journal of
Enterprising Culture, 12(04), 303–325. https://doi.org/10.1142/s0218495804000166
Wind, J., & Mahajan, V. (1997). Issues and Opportunities in New Product Development: An Introduction to the Special Issue. Journal
of Marketing Research, 34(1), 1–12. https://doi.org/10.1177/002224379703400101
Yin, C., & Zhang, W. (2021). New Product Development Process Models. Proceedings - 2021 International Conference on E-
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