Product development is a process that starts from an idea and ends at an evaluation of the market performance of your idea. This idea can be any tangible item called product. Service development is similar to product development but it’s intangible.
Eight steps involved in the process of product development
#1 Generation of Idea
Idea generation is the first step in the development of the product. In this, we do the following things
- Do market research and analyze the need of customers
- Ask for suggestions from consumers before producing any product
- Do Brainstorming to have new ideas of business development
- To understand the need of the emerging world. We do research in different markets. It includes both national and international markets
- Notice the services given by competitors in the market
- Take feedback on competitor products from their regular consumers
#2 Idea Screening
For this, A committee is present in every organization. Their responsibility is to organize a meeting on product development and do brainstorming on every generated idea. They will choose it for product development if they feel that any idea is good to follow. Otherwise, they reject doing expansion and innovation in the product. Before selection of any idea; there are a few questions to be answered
- Is it really need to do expansion?
- Are the existing machinery and equipment are capable to produce a new product.
- Is our marketing team capable to sell the new product?
- When we launch new products in the market?
#3 Conduct Surveys
This process is done after the idea of screening. In this, a survey is done on a small number of consumers to understand their needs and problems. It is very helpful in understanding consumer nature and take decisions for the production of product. The question asks in this survey may be the following.
- Does the consumer understand the idea of a new product?
- Whether consumers want new specifications and modules in the product or not?
- Are consumers ready to accept the new product?
#4 Business Analysis
Business analysis is the most important step in product development. In this organization has done a complete market analysis and decide that either investment in product development will give financial profit or not.
In this, the following aspect will be considered
- Will the new product result in a financial profit or not?
- Are consumers demanding a new product?
- The new product is for seasonal or regular use?
- Are there is any competition in the market for a new product?
- How much the total sale of the new product be?
- What will be the expenses of marketing the new product?
- What is the cost of a new product?
In this company analysis the product from a business point of view. If it seems profitable then accept the idea of product development otherwise they reject it.
#5 Product Development
In this step, Compay decides to introduce their new product chain in the market. For which they make a plan to implement it. In this they design tasks for different departments and assign their duties to them.
- The production department is responsible to make a plan and start producing new products.
- The marketing department makes a strategy to commercialize the product and attract more audiences towards the product.
- The finance department provides financial services to the production of the product.
- The advertising department starts advertising the product on a small scale through billboards, television ads, and social media websites.
#6 Test Marketing
In this step, the Company tests the performance of the product in the market by testing it on a small scale of population. Organization launches the product if the product performance is satisfactory and successfully attracts the customer. Some changes take place in the product according to the recommendation of the product user and then relaunch it if these are unable to satisfy customer. It saves the company from huge losses and a decline in market image.
If the step of test marketing is successful and the product is successful to attract the consumer and meet their desires after testing it on for a small population. Company decides to launch the product on a larger scale. This step is called commercialization. The company invests huge amounts to make people aware of their product by giving adds in television, newspaper, radio, and social media or any other advertising channel.
#8 Review of Market Performance
In the end, company takes a view on the market performance of product. It is tested by answering some question, that are:
- Are consumers accepting new products of the company?
- Is the market demand for products high?
- Did the product make consumers satisfy?
- Are the distributers happy with the commission?
- Is the staff members are happy with their salary?
- Can marketing staff change in the product line according to the environment?
- Is the competitor ready to lauch new product in the market?
- What is the strategy of competitors in the future?
Every company should consciously focus on the step of product development. Like’ if they need any marketing and production change; they must do it on time. The company must be able to compete with their competitor in the market along with successfully meeting the demand of consumers.