Before you develop a new product for your company, you need to understand the stages involved in the new product development process.
The development of a new product will start with idea generation. This is getting the ideas of a new product form the various sources available. There is the internal idea sources where he company generates new ideas internally. There is also the external idea sources such as suppliers customers competitors and distributors.
When the company has identified potential ideas for new products, the next step is idea screening. Here, screening takes place to get rid of unsuitable ideas as soon as possible. Besides, the purpose of this stage is to reduce the number of ideas as this can be costly in the later stages. Some of the factors considered when screening ideas include affordability, market potential and its ROI.
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. You need ask consumers for their opinion in order to see their reaction towards the new product. The provided version of the product idea should be detailed so that the consumers may be able to visualise the actual product. Besides, the concept testing can either be done symbolically or physically.
When the concept has been developed and tested, the other stage is that of marketing strategy development. This step involves designing the market strategy that will used to introduce the product into the market. It involves three stages which are; a description of the target market, the products planned price and the profit goals as well as marketing mix strategy to be used.
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 sales can be estimated by looking at the sales history of other similar products.
The next step is product development after passing the business analysis. 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 product and the marketing programme are tested including advertising, packaging, and distributions.
The final stage in the new product development process is commercialisation which involves introducing the product into the market. In this stage, a lot of money is spent on advertising, sales promotion, and renting a manufacturing facility. The launching place should also be put into consideration.