Before you develop a new product for your company, you need to understand the stages involved in the new product development process.
The new product development process always starts with idea generation. A company can generate product ideas from the various source available to it. 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. All the generated ideas are screened so that only the good ones remain and the other rejected. As a result the number of ideas that were generated in the first step will be reduced in order to cut the costs of product development and only retain a small number of good ideas. 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. It is also crucial to provide in-depth information so that they will have a clear image of the actual product. These concepts can be provided to consumers physically or symbolically.
The next step that follows in this process is the marketing strategy development. This stage involves development of a marketing strategy for introducing the new product into the market. The marketing strategy can be formulated to include the description of target market, planned price of the product and marketing mix strategy.
Business analysis is the other step in the new product development process. Here the sales, profit and costs of the new product are reviewed. The company can estimate the sales by conducting market surveys and looking at past history of similar products.
When the product has passed the business test, it goes to product development stage. 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 whole concept is for the marketer to have to have an experience of testing the product.
Finally, the last stage in the new product development process is commercialisation. In this stage, a lot of money is spent on advertising, sales promotion, and renting a manufacturing facility. The company should come up with a good location to launch the product to attract potential customers.