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Posted on August 10th, 2012, 3:44

Product development is defined as “The creation of products with new or different characteristics that offer new or additional benefits to the customer.” The success of any business enterprise lies in its ability to introduce new products into the market consistently. Product development refers to the entire process involved in either modifying an existing product or creating a new product from scratch and bringing it into the market. Let’s look at the process ofnew product development in detail.

·         Idea Generation
Idea generation refers to the use of methods and sources (either new or existing) to generate new ideas for products. For instance, SWOT analysis, market and consumer trends, Ethnographic discovery methods and trade shows. The company's R&D department, employees, competitors, salespeople, focus groups can contribute in generating ideas for products.

·         Idea Screening
In this phase, the new product ideas are screened in order to eliminate poor, unsuitable, unattractive, and unsound concepts before allocating resources to them. Most companies do idea screening by creating a checklist of attributes that they would like to see in the new product and then evaluate each idea with these attributes.

·         Concept Development and Testing
In this phase the concept is tested by using qualitative and quantitative methods to understand and measure customer attitudes and intentions before the introduction of the product in the market. Concept testing helps companies to measure customer response before the expensive and time consuming prototype development.

·         Business Analysis
During this phase, companies analyze important business and financial matters such as cost projections, competition, demand projections, required investment profitability and so on.

·         Product Development and Market Testing
This phase involves creation of product prototype and identification of a viable marketing strategy. The prototype is tested in typical usage situations, introduced in trade shows in order to understand customer response. Based on the response, changes are made and then an initial run of the product is developed. Market testing or test marketing involves selling the product in a test market and evaluating customer acceptance.

·         Commercialization
This phase involves launching and promotion of the product. Companies place advertisements and thus implement a total marketing plan.

Several companies provide product development services such as ideation services, product engineering services, product R&D services,product engineeringand so on. Enterprises can seek the help of these companies in overcoming their challenges in developing high-quality products, releasing new features ahead of the competition, and customizing products for different languages, technologies and customer requirements at reduced operating costs and risks.

 

Related Links: Product lifecycle management, Mobile Application Development

 

By Josephmax, in: General