There are several steps involved the development of a new product in order to make it successful when being launched in the market.
The first step in the new product development process if idea generation. A company can generate product ideas from the various source available to it. The first source is internal sources where the company gets ideas from within the company including from employees. 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. This is an important step that ensures only good ideas are selected and the bad ones are 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. The unsuitable ideas will be eliminated based on things like affordability, market potential and ROI.
The third stage in new product development process 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. The provided version of the product idea should be detailed so that the consumers may be able to visualise the actual product. When it comes to testing, the concept can be tested to target audience either through physically or symbolically.
The next step that follows in this process is the marketing strategy development. Here, the market strategy for introducing the product into the market is developed. The marketing strategy can be formulated to include the description of target market, planned price of the product and marketing mix strategy.
Once you have a come up with a marketing strategy, the next stage is business analysis. This step involves determining whether the new product will be profitable by reviewing the costs, sales and profit projections. In order to know the sales f the new product, the company can look at the sales history of similar products or conduct a market survey.
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. Here, the product is tested in a market setting so that the marketer can have an experience before introducing the whole package.
The final stage in the new product development process is commercialisation which involves introducing the product into the market. The product is introduced into the market and costs such as advertising and promotion are incurred. Also, crucial decision should be made where to launch the product in order to target your market.