(Management Project)How to Perform Market Orientation in New Product Development


In  turbulent  environments,  the  infused  marketing  function  has  become  an  essential and natural part in the firms’ new product development (NPD). Some scholars define NPD as the transformation of amarket opportunity into a product  as a result of the coupling of market assumptions with technological possibilities. 

The purpose of this study is to explore the role of market orientation in NPD, with the specific focus on how market orientation is carried out in NPD and how it affects NPD. This study is built  on  a  conceptual  framework  and  a  tool,  both  are  formed  from  literature.  The authors use the case study to conduct this research, and one company’s (Tylö’s) data is  gathered  through  the  semi-structured  interview.  Some  findings  are  obtained  from analysis: Firstly, market orientation contains two approaches, one is the market-driven approach and the other is the driving-market one, and firm could choose one of them according  to  the  new  product  features.
Secondly,  there  are  four  areas  in  market orientation, for each approach, the specific content in each area is different. Thirdly, the    four    areas    are    identifying  customers’    needs,    collecting    information, inter-functional  coordination  and  taking  action  and  they  move  on  sequentially.  In addition, two crucial factors-time and cost should be paid much attention in NPD.
Source: Halmstad University
Author: Hu, Hao | Xu, Chenke

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