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 involves the search for new product ideas systematically. There is the internal idea sources where he company generates new ideas internally. There is also the external idea sources such as suppliers customers competitors and distributors.
When the company has identified potential ideas for new products, the next step is idea screening. Here, screening takes place to get rid of unsuitable ideas as soon as possible. This way, the company will remain with only a few number of ideas and this will help cut on costs. When screening out the ideas, things like ROI, market potential and affordability of the product are considered.
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. The idea which is now a concept is tested to the consumers in order to get their feedback and reactions. The detailed version of concept provided will help consumers have an idea of what the actual product looks like. These concepts can be provided to consumers physically or symbolically.
The next step that follows in this process is the marketing strategy development. Here, the market strategy for introducing the product into the market is developed. 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. Here, you want to find out whether factors like sales, cost and profit will meet the business objectives. In order to know the sales f the new product, the company can look at the sales history of similar products or conduct a market survey.
If the product is found to satisfy the company’s objectives, it is moved to the next stage of product development. The business concept is developed into an actual product that can be tested by consumers. After product development, the next step is test marketing. The product and the marketing programme are tested including advertising, packaging, and distributions.
The final stage in the new product development process is commercialisation which involves introducing the product into the market. The product is introduced into the market and costs such as advertising and promotion are incurred. The launching place should also be put into consideration.