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.
Idea screening is the next step in the new product development process. 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. When screening out the ideas, things like ROI, market potential and affordability of the product are considered.
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 detailed version of concept provided will help consumers have an idea of what the actual product looks like. 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 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. 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. The business concept is developed into an actual product that can be tested by consumers. The actual product is en taken for 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. The company should come up with a good location to launch the product to attract potential customers.