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 involves the search for new product ideas systematically. There is the internal idea sources where he company generates new ideas internally. Apart from the internal sources, the company may get new product ideas externally from distributors and suppliers as well as customers.
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. This way, the company will remain with only a few number of ideas and this will help cut on costs. When screening out the ideas, things like ROI, market potential and affordability of the product are considered.
After the screening, the idea goes to the next step of concept development and testing. Here, you want to develop the idea into a product concept which is elaborated in consumer terms. 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.
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 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.
The fifth step in the new product development process is the business analysis. This step involves determining whether the new product will be profitable by reviewing the costs, sales and profit projections. The sales can be estimated by looking at the sales history of other similar products.
When the product has passed the business test, it goes to product development stage. Here, the product idea is developed into a physical product that consumers can test and feel so as to give their feedback. After product development, the next step is test marketing. The product and the marketing programme are tested including advertising, packaging, and distributions.
Finally, the last stage in the new product development process is commercialisation. Tis stage incurs a lot of costs because of advertisements and other marketing efforts. Also, crucial decision should be made where to launch the product in order to target your market.