Developing a new product which will appeal to a specific market is a great way to earn a successful living. However, there is a specific procedure which must be followed in order to successfully develop, design and mass market a product or service. This procedure is often referred to as the new product development process.
The First Step of the Product Development Process
The first step in a company’s product development strategy is the most logical and yet also one of the most difficult steps in the process. This process is often referred to as the idea generation step. In business circles, it is casually referred to as the fuzzy front end of the entire product development process. This step requires developers, inventors or marketers to brainstorm ideas for products which may or may not be successful in today’s economy. Most of the ideas generated in this step will be discarded because they represent products which will be difficult to produce, difficult to sell, or unattractive to potential buyers. Out of hundreds of ideas that are generated in the brainstorming phase of the product development process, only a few will be chosen for further development.
During this stage of the new product development process, it is important to be free with ideas and suggestions. By brainstorming a variety of options, the odds are greater that your company will stumble upon an idea that may work. It is also important to perform a variety of research. You can evaluate products on the current market, other business ventures, commonly searched for items, new products being sold at trade shows, and other sources of information. The more information you gather, the greater understanding you will have about which ideas have potential.
Developing the Concept Further
After an idea is chosen in the product development process, research and development teams must then begin asking several important questions before committing to producing the product or service. These questions range from what the target market of the product is to how much revenue can be expected from this product. During this phase, marketers and researchers evaluate potential costs of production, potential prices for retail sale of the product, possible market niches that may be attracted to the product and much more. This phase of the product development strategy requires researchers to imagine situations where the product might be purchased and decide if the project is worth pursuing.
Product Testing
After the initial questions about product success are asked and answered, the next step in the product development process involves creating a test version of the product in question. Usually, marketing strategists and developers will construct an example of the product as well as an example of the possible packaging that would be used to sell the product. This packaged product is then exposed to test subjects to evaluate their reactions. This phase of the new product development process provides real life information about how niche markets will react to this new product. Often, significant changes occur during this process as strategies are reevaluated and the product itself is tweaked and perfected. This step should never be skipped, as the only way to know for sure how potential customers will react to this product is by presenting a test group with the product itself and evaluating their reactions. Often, ideas are rejected at this phase because the test group findings are very poor in nature.
Production of the Product or Service
Unsurprisingly, the next step in the product development process is actually mass producing the product or service in question. This step takes a considerable amount of time, as companies must use their resources to invest in a large scale production of the process. Work is sometimes outsourced to other companies and the product is assembled from various parts. Once the product is produced, the marketing step of the product development strategy can begin.
Marketing the Product
Producing a product is only half of the venture. Companies must also develop unique marketing strategies to effectively use the product development process. These strategies should effectively communicate information about the product in question and should answer customers’ questions regarding why they should purchase the product and what the product can accomplish in their lives. All of these steps in the product development process combine to effectively generate revenue and lead to success.