# Steps Involved in the Development of a New Product New product development is a systematic process through which a retailer or manufacturer converts a market opportunity or consumer need into a marketable product. In Buying and Merchandising-II, product development is important because buyers and merchandisers must understand consumer preferences, market trends, competition, pricing, product quality and profitability before introducing a new product. The major steps involved in new product development are as follows. The first step is idea generation. New product ideas may come from customer feedback, market research, salespersons, competitors, fashion trends, technological developments and changes in consumer lifestyles. A merchandiser continuously observes the market to identify unmet customer needs. For example, a fashion retailer may identify increasing demand for comfortable and environmentally friendly clothing. The second step is idea screening. All generated ideas cannot be developed because they may be expensive, unsuitable for the target market or difficult to produce. Therefore, ideas are evaluated on the basis of customer demand, company resources, production facilities, competition, expected sales and profitability. Suppose the retailer considers developing an organic cotton T-shirt. The company would examine whether sufficient customers are willing to purchase it and whether the product can be produced at