There are several steps involved the development of a new product in order to make it successful when being launched in the market.
The new product development process always starts with idea generation. This is getting the ideas of a new product form the various sources available. 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.
After they have gathered several ideas, 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. The unsuitable ideas will be eliminated based on things like affordability, market potential and ROI.
After the screening, the idea goes to the next step of concept development and testing. The new product idea is converted into a concept that consumers will be able to understand. This way, the consumers can be able to perceive the product and give their reaction. It is also crucial to provide in-depth information so that they will have a clear image of the actual product. Besides, the concept testing can either be done symbolically or physically.
After testing the concept and analyzing whether consumers need or want the product, the step that follows is the marketing strategy development. Here, the market strategy for introducing the product into the market is developed. 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, you want to find out whether factors like sales, cost and profit will meet the business objectives. 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. The second last step in the new product development process 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.
After test marketing, the final stage is commercialization. The product is introduced into the market and costs such as advertising and promotion are incurred. The company should come up with a good location to launch the product to attract potential customers.