There are several steps involved the development of a new product in order to make it successful when being launched in the market.
The development of a new product will start with idea generation. This involves the search for new product ideas systematically. A company can generate new ideas from two sources including the internal source where employees and other staff of the company contribute to ideas. Apart from the internal sources, the company may get new product ideas externally from distributors and suppliers as well as customers.
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. 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.
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. The detailed version of concept provided will help consumers have an idea of what the actual product looks like. These concepts can be provided to consumers physically or symbolically.
When the concept has been developed and tested, the other stage is that of marketing strategy development. Here, the market strategy for introducing the product into the market is developed. It has three parts which include; description of the target audience, the price, distribution and marketing budget and lastly, marketing mix strategy and profit goals.
Business analysis is the other step in the new product development process. Here the sales, profit and costs of the new product are reviewed. 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. Here the actual product is developed into something tangible for consumer testing. The second last step in the new product development process is test marketing. The whole concept is for the marketer to have to have an experience of testing the product.
After test marketing, the final stage is commercialization. In this stage, a lot of money is spent on advertising, sales promotion, and renting a manufacturing facility. Also, crucial decision should be made where to launch the product in order to target your market.