Before you develop a new product for your company, you need to understand the stages involved in the new product development process.
The first step in the new product development process if idea generation. This is getting the ideas of a new product form the various sources available. A company can generate new ideas from two sources including the internal source where employees and other staff of the company contribute to ideas. There is also the external idea sources such as suppliers customers competitors and distributors.
Idea screening is the next step in the new product development process. 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 new product idea is converted into a concept that consumers will be able to understand. You need ask consumers for their opinion in order to see their reaction towards the new product. 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.
After testing the concept and analyzing whether consumers need or want the product, the step that follows is the marketing strategy development. This step involves designing the market strategy that will used to introduce the product into the market. It has three parts which include; description of the target audience, the price, distribution and marketing budget and lastly, marketing mix strategy and profit goals.
Business analysis is the other step in the new product development process. This step involves determining whether the new product will be profitable by reviewing the costs, sales and profit projections. 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. Here, the product idea is developed into a physical product that consumers can test and feel so as to give their feedback. After product development, the next step is test marketing. The product and the marketing programme are tested including advertising, packaging, and distributions.
After test marketing, the final stage is commercialization. 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.