product development. learning goals by the end of today’s period, you will be able to: –...
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Product Development
LEARNING GOALS
• By the end of today’s period, you will be able to:– Understand the steps of the buying process– Understand how new products fit existing topics
such as value equation, target market, product life cycle
– Understand the role design and prototypes have on the release of new products
Product Development
• Stages of Product Development
• Marketers use innovations and inventions to make profit. Sometimes the marketer and inventor are the same person, but not often. Inventors usually sell or license ideas to others.
Product Development
• Stages of Product Development• Innovators are usually marketers because their
motivation for product improvement is profit—a better product leads to a competitive advantage.
Stages of Product Development
Stages of Product Development
1. Idea Generation
• Entrepreneur may observe a market opportunity• Market research reveals consumers want a new or
modified product. • Marketers may ask “how can we improve our
product to improve sales?”
Stages of Product Development
2. Idea screening
• Not all ideas are good• Marketers need to see consumer reaction to the new
idea, and look at competition. • Market Research, Focus Groups, Interviews – Various forms of Primary Research
Stages of Product Development
3. Concept development
• If it’s a good idea, a prototype of the product is made– a sample of what the product will look like and how it
operate– Does it work? – Do consumers like it?– How much will it cost?
Stages of Product Development
Stages of Product Development
4. Market strategy
• Using market research, to establish a target market • Develop a marketing strategy (4 P’s)
Stages of Product Development
5. Feasibility study
• Can the product be made and sold such that it is affordable for the consumer and profitable for the company?
Stages of Product Development
6. Product design
• Take into account preferences of the target market• This includes features such as:– Warranty– instruction manual– Packaging– service information.
Stages of Product Development
Stages of Product Development
7. Test marketing
• Get the product into the hands of people who fit your target market. Have them use it, for a period of time, complete survey to make suggestions.
Stages of Product Development
8. Market entry
• Start of product life cycle, product is introduced to the market.
Product Development• You are going to look for new products for 2012
– Use google, hotproductnews.com– http://www.bestnewproductawards.ca/– http://www.inventionconnection.com/whatsnew.html– Search your own if you wish!
• Open the assignment entitled “New Products Assignment”
• You will choose 3 new products to write about– All must be a different product category ie.
computers, smart phones, cars, etc.