White Paper: Pricing and New Product Development

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Decision makers need a clear roadmap for integrating pricing into the New Product Development (NPD) process. Directives to conduct pricing research early in the NPD process often go unheeded, due to a lack of specificity in the recommendation. Moreover, expending resources on a full pricing research effort long before launch is hard to justify given expected market environment changes between NPD initiation and NPD launch.

The common result is to delay price research until shortly before launch, reducing the usefulness of the pricing research for decisions regarding target market selection, financial forecast expectations, and offering definition, distribution, and positioning. Decision makers can do better.

Instead of a blasé directive, decision makers require a clear roadmap for integrating pricing research into NPD. This roadmap should provide criteria for guiding decisions regarding the timing of execution, methodologies to deploy, and resources deployed. It should reflect an orderly and logical integration of pricing research into the NPD process.

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