New Product Development - 15 Mints Notes

New Product Development - 15 Mints Notes

In business and engineering, new product development covers the complete process of bringing a new product to market,

PRODUCT LIFE CYCLE

It’s four stages;

SEVEN STAGES OF NEW PRODUCT DEVELOPMENT.

1) IDEA GENERATION
2) IDEA SCREENING
3) CONCEPT DEVELOPMENT AND TESTING
4) BUILDING A MARKET STRATEGY
5) PRODUCT DEVELOPMENT
6) MARKET TESTING
7) MARKET ENTRY / COMMERCIALIZATION

IDEA GENERATION

 

During the first stage, your goal is to brainstorm ideas for a product, focusing on solving your customers’ problems. Create buyer personas, perform research, and dig deep into their issues. You can use as many sources of information as you need, not just your customers. Speak to your suppliers, distributors, competitors, and employee contributions.

You don’t want to limit your ideas in any way in stage 1. Instead, create a list of ideas while trying to focus on creating value for your customers.

IDEA SCREENING

 

The first stage exists solely to generate ideas without any kind of filter. Now is the time to start reducing your ideas. To ensure your idea is feasible, perform a proof of concept check, plus consult as many people internally as you can, checking different aspects such as the technical side of things, cost of production and resources, and marketability. Listen to your engineers, designers, and market.

SWOT

 

CONCEPT DEVELOPMENT AND TESTING

 

Concept Development: The difference between screening a new idea and developing it into a concept is vital. Only after creating alternative concepts for the idea can you evaluate its attractiveness to customers. Your concepts should be as precise as possible to provide meaning and be properly tested. Creating vague or general concepts won’t allow you to test the validity of your idea correctly.

Concept Testing: Once you’ve developed your concepts, test them by presenting it to a select group of consumers. Does your concept have a strong enough appeal? You can tweak your concept until you find success, but don’t be afraid to throw out any concepts which fail to grasp your consumers’ attention and provide value.

BUILDING THE MARKET STRATEGY

 

Marketing Strategy: Layout how you’re going to market your product and reach your target audience. You’ll want to define your value proposition, outline your planned selling price, and include your marketing budget for the business analysis.

Business Analysis: Performing an in-depth business analysis will help you decide whether your new product idea is worth the financial investment and resources you’ll need to dedicate to it. During this analysis, you’ll need to outline the total sales forecast, estimated costs, profit projections, and define your overall objective. Sometimes your business goal may be to penetrate the market, not necessarily achieve a positive ROI.

PRODUCT DEVELOPMENT

 

The new product development process doesn’t define how to actually develop the product. That depends on your company’s preference for development, whether it’s Agile or Waterfall or another viable alternative.

Your designers, engineers, and developers will need to work together to create the finished product, which can take anywhere from days to years, depending on your product and the resources available.

MARKET TESTING

 

1. Alpha testing is when your product is delivered to test engineers who evaluate its performance in-case of any issues which need to be addressed.  

2. Beta testing is when real groups of consumers receive your product to give their feedback. To get the most out of beta testing, be open to every single comment, and try not to get emotionally attached to your product in any way.

 
MARKET ENTRY /COMMERCIALIZATION

 

After the testing stage, you’ll know whether you’re ready to launch or return to an earlier stage. The commercialization phase means you’re prepared to launch your new product into the market, and it means more than just advertising. You’ll need to ensure that your production, distribution, marketing, sales, and customer support team are all in place to ensure a successful launch and ongoing campaign.

UI AND UX

 

4 TYPES OF PRODUCT

1) CONVENIENCE GOODS

2) SHOPPING GOODS

3) SPECIALITY PRODUCTS

4) UNSOUGHT GOODS

 

 

 

CONCLUSION

During each stage of the new product development model, your focus should always be on producing greater customer value and innovation, as that’s how you’ll ensure your product is a success.

 

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