New Product Development Process: Why is it Important?
Are you looking to launch a brand-new product? Understanding product development in this venture is critical. There are several phases that we need to consider when developing products.
Often, products hit the market and sometimes fail. Why? There could be several reasons, such as lack of careful planning and launching the right product. As such, entrepreneurs need to have a thorough understanding before venture into new product development.
This article will identify Kotler’s stages of the product development process to help you gain a better understanding of product development before launching for potential success.
What is Product Development?
“In business […], new product development (NPD) covers the complete process of bringing a new product to market. The product development process typically consists of several activities that firms employ in the complex process of delivering new products to the market,” as defined by Wikipedia.
So, let us review the stages.
Idea Generation: The first thing you should consider are the benefits of the product. What need will it solve? This step requires a lot of effort on your part, and you will need to brainstorm your ideas with friends, families, or customers to understand how they feel about your idea. Examine the market trend, as this will further help you understand the consumer journey and how your product will fit into the journey map. Make a list of ideas. You need to know how customers will potentially perceive your idea before taking the next step.
Idea Screening: This approach includes analyzing the ideas to prevent potential pitfalls. You may think that you have brilliant ideas, and the product will be perfect for your customers. However, without screening carefully, you may underestimate the intent of what motivates your customers to act. One way to remove the fallacies is to review feedback from customers on similar products. Look at positive as well as negative comments and align your ideas accordingly. You may even need to go back to the drawing table several times before you perfect the idea. Besides, you will need to ensure that the product’s concept is profitable before you advance your goal.
Concept Development and Testing: This approach requires you to pinpoint your target audience. You could also narrow your target audience into demographic, psychographic, behavioral, or geographic segmentation. That may be more realistic, especially if you have a unique idea of the product that serves a specific segment. After that, you continue your market research to test your idea of the concept.
For example, According to EVOC Insights, the Brand’s “Concept Tests combine AA&U (Attitude, Awareness, and Usage) testing with brand attribute measurement and concept exploration. We help you understand your target consumers’ awareness and usage of your brand and/or brand category and their competitive preferences and future usage.”
Marketing Strategy Development: Now that your ideas seem clear, it is time to establish your marketing strategy. To help you develop an effective plan, the approach you employ should include your marketing mix. Sounds familiar?
According to Anthony Miyazaki, the marketing mix includes the following: the product you are offering to solve the needs of consumers; the price consumers are paying for the product along with other price variables; the promotion of sharing information about your product to get sales and; the place where customers will have access to buying the product.
Let us take a look at this example of marketing strategy development. “Fisher-Price had introduced Play Labs, where the research team observed how kids played with the toys, such child research center was the first of its kind in the toy industry. The company decided to introduce the KidTronics range, which it could have launched five years ago but preferred to wait for the cost to come down to make it durable,” according to studies.
Business Analysis: So, you put together your marketing strategy. You will now need to review your plan with a focus on your costs, sales, and expectations of income and profit because this will determine your business performance and success.
Product Development: At this stage, you have confirmed your idea. You should be developing a prototype or a tangible model of your product idea so you can prepare to start doing your testing, such as functional and consumer tests.
Market Testing: You have now reached a significant milestone in your product development phase. To have a successful launch, you will need to consider conducting a pilot market test of your marketing strategy. Once you achieve your desired results, then you move on to the next step.
Commercialization: You are at the final of the eight stages. Are you ready to launch your new product? If you think you are ready, ask yourself the three main questions:
When will I begin my launch?
Where will I launch my product?
How will I launch my product?
These are vital questions that you need to address before you start. You need to ensure that you set up your launch at the right time, target the right audience and that your plan aligns with the goals in the development phases.
Conclusion
The decision to develop a new product should align with the goal of your business. Although this can be a daunting process, with the right product promoting to the right audience can be rewarding. As such, to create a new product and successfully launch that product, it is necessary to understand the new product development process.
Additionally, to be competitive, you should always focus on developing your product according to the customer’s desires, demands, and feedback on your product, as this will differentiate you from the competition. A detailed understanding of the product life cycle is also crucial for your product growth stages.
Learn now how to leverage the product life cycle strategically, so you can work towards dominating the market with your offers potentially.
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