Product development is the process by which a product is brought to market. A product is any tangible or intangible benefit that reaches the end consumer. Product development is considered the first step in the product life cycle that businesses use to gain market share. Read below to discover the most important steps in the product development process.
Ideas can be generated in a variety of different ways. Normally, companies look for gaps in the market and try to fill a need. This is based on consumer trends, competitors' products and a wide variety of other data. Lots of ideas are generated, but not all of them are used. It is important for companies to come up with as many ideas as possible for the next phase of product development.
The idea screening phase allows researchers to weed out unsound ideas. Screeners often do extensive market research to get an idea of the target end user's opinion. They must also find the answers to a variety of different questions about their target market, such as whether growth is projected and if it is even financially possible for the firm to produce the product.
During the concept development phase of the process, companies must find out how consumers will react to the proposed product, how much production will cost and who their target market is. It is also important to do extensive research via patent databases to see if their idea is unique. A unique product helps firms avoid legal issues and ensures that they market is not saturated.
This phase involves estimating the profitability of a product based on an estimated sale price. The sale price is reached by extensive market research of the target market.
Beta Testing with the Target Market
During this part of the product development process, a mock-up of the proposed product is produced and focus groups are asked for their opinions. After analyzing the data gathered during market research, adjustments are made before the product reaches the market. Initial runs can be produced to sell in limited test markets during this stage as well.
The final phase is commercialization. This part of the process involves launching and distributing the product across all markets. Firms produce advertisements and other promotions to get the word out to the consumer and continue to gather important feedback.
Clint Dixon works with Kleritec Inc. to bring small and medium sized businesses products and services to ensure growth and success. Offering Health Care, Educational, Athletic, Imaging and WIC, Kleritec has a wide range of products and services for businesses.
Kleritec Inc. Product Development Process