Nowadays, it is very difficult for a company to carry on with their existing products. In order to stay successful in the market, companies needs to launch new products regularly. Developing a new product involves various stages. The product needs to pass through eight stages. Below is the list of different stages a product has to go through in all the product development companies.
Stage 1: Idea Generation
The first stage of product development is idea generation. Idea generation basically refers to systematic search for new product ideas. Typically, at the initial stage, the company generates several ideas in order to find the best ones. Every product starts with an idea. Sometimes, it is simpler when the new product is based on something similar which was already there. However, in other cases, it might be something unique and revolutionary, which means the idea generation process is very crucial. Sometimes idea generation is done by taking products ideas from employees who deal regularly with customers. Moreover, idea generation can also be done through market research such as consumer likes, dislikes, competitor policy, etc.
Stage 2: Idea Screening
Ideas can be many, however, good ideas are only few. The second step of product development includes finding the feasible and good ideas and discarding the others. Idea screening is basically filtering the ideas for picking out the good ones. As product development costs would rise greatly in the later stages, therefore, it is important to reject the bad ideas as soon as possible in order to go ahead with the good ones. Idea screening is very essential in order to reduce the number of products for saving money, time, energy and technology.
Stage 3: Concept Development and Testing
A concept is basically a detailed strategy or the blueprint version of the idea. All the ideas which pass the screening stage turns into concepts for the purpose of testing. Products are not launched without testing the concept. The concept is taken to the target market and few selected customers from the target market are chosen for testing the concept. Some information is provided to them for helping to visualize the products. It is then followed by few questions from both the sides. Business tries to know the feeling of the customer regarding the products, whether it fulfils their want and need, will they buy it when it actually gets launched.
Stage 4: Marketing Strategy Development
In this stage, the marketer decides what type of marketing strategy needs to be used. This includes whether the product should have mass marketing, whether to launch it in specific areas, etc. Stage
Stage 5: Business Analysis
At this stage, the marketer decides whether they would be able to achieve the expected profit or sale. After looking at the consumer testing feedback, the manufacturer decides if any kinds of changes are required for the product and how they should launch the product in the market. The information from consumers helps in making strategic decisions which will be crucial for the success of the product, which includes to decide the selling price and how to market the product.
Stage 6: Product Development
When all of the strategies are approved then product concept gets transformed into actual tangible product. The development stage of the new product development evolves in creating up of prototype or limited production model. The branding and various other strategies which have been decided previously are then tested and applied during this stage.
Stage 7: Test Marketing
Test marketing is done for finding out how large the market is. The product is ready for being launched in the market, having a proper packaging and brand name.
Stage 8: Commercialization
Commercialization is the last stage of product development. It is nothing but introducing the new product into the market. Sales promotion, advertising and various other marketing efforts takes place in this stage.