Before you develop a new product for your company, you need to understand the stages involved in the new product development process.
The development of a new product will start with idea generation. This is getting the ideas of a new product form the various sources available. There is the internal idea sources where he company generates new ideas internally. The other one is external idea sources where the company collects its ideas externally like form distributors, customers, suppliers and also competitors.
Idea screening is the next step in the new product development process. This is an important step that ensures only good ideas are selected and the bad ones are rejected. As a result the number of ideas that were generated in the first step will be reduced in order to cut the costs of product development and only retain a small number of good ideas. Some of the factors considered when screening ideas include affordability, market potential and its ROI.
When the idea has passed the screening process, the other step is concept development and testing. The idea is then explained in a concept that is meaningful for consumers to comprehend. This way, the consumers can be able to perceive the product and give their reaction. The detailed version of concept provided will help consumers have an idea of what the actual product looks like. When it comes to testing, the concept can be tested to target audience either through physically or symbolically.
When the concept has been developed and tested, the other stage is that of marketing strategy development. This stage involves development of a marketing strategy for introducing the new product into the market. It involves three stages which are; a description of the target market, the products planned price and the profit goals as well as marketing mix strategy to be used.
Once you have a come up with a marketing strategy, the next stage is business analysis. This step involves determining whether the new product will be profitable by reviewing the costs, sales and profit projections. The company can estimate the sales by conducting market surveys and looking at past history of similar products.
If the product is found to satisfy the company’s objectives, it is moved to the next stage of product development. Here the actual product is developed into something tangible for consumer testing. The actual product is en taken for test marketing. The whole concept is for the marketer to have to have an experience of testing the product.
Finally, the last stage in the new product development process is commercialisation. Tis stage incurs a lot of costs because of advertisements and other marketing efforts. Also, crucial decision should be made where to launch the product in order to target your market.