ABSTRACT
Market positioning is an important consideration when the product to be introduced is proprietary in nature and, as is usually the case, the market can be segmented in some fashion. A new product will also have an effect on the existing product line, and the impact will be either positive or negative. The intrusion of a new product aiming at the same uses must take sales away from the other products because the market cannot expand to accommodate all the products. In the internal rate of return method, the present values of expected future cash flows is equated with the investment outlay in such a way that an interest rate is calculated. Proposal checklists in one form or another are used widely in evaluating new-project proposals. In recent years more industrial product manufacturers have been embracing the idea of concept testing and prototype evaluation, which have been employed for many years by consumer goods manufacturers.
