Iterative and incremental development or extreme programming...

All models are basically adopted from waterfall model. Every model cycles say Requirement gathering, design,development,testing,and optimization.

First we will talk about water fall model, this model is straight consistent and highly adopted method in software industry. It will be adopted both in large team as well as small team. Basically model is adopted with different reason like size limit,cost,timeline this tree factors are important to choose the model. But water fall model has some disadvantages like if req gathering is not done as per client expectations. Rework is required; each phase is taking long time till other team will wait. Like developer will develop the software tester will wait till upload the build in svn.and also customer will get the feedback when application comes to testing.

Spiral model (Expect a risk in market acceptance)
This is basically a new approach only one thing is added risk analysis, means application already in a market u will compare with other competitors and also analyze the feature is required to your client or not sometimes feature is good but client is not intrested.so check the actual requirement present in the market analyze it before add and launch in the market.

Iterative and incremental development or extreme programming:
Take an example u have a new project start requirement gathering have 2000 requirements.
Take 5-10 requirement and follow the the same water fall model
requirement gathering-->design-->develop-->test the build.

Take again 5-10 requirement and follow the the same water fall model
requirement gathering-->design-->develop-->test the build.
Integrate it and build it and test it. Your client will get something he can able to track also where our application is.

I love that approach because team is high caliber and develop the build done unit test check the result if it working fine ok but it is not working fine again do the same and also Try to minimized paper work. And the second good thing everybody knows his roles and responsibility.

Prototyping model: In this model client also not sure about the requirement he is only having an idea about project. In this model SME Build an up in pure html page and demo to customer then customer will say some changes then developer will develop the software and send to the customer if customer satisfied otherwise rework is required sometime develops from the beginning.Highest priority is to satisfy the customer through early and continuous. Delivery of valuable software, Welcome changing requirements, Deliver working software frequently is the basic manifesto of the up.

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