Stages of Product Development
The different stages of product development are:
1) Idea Generation & Screening
This stage involves the search for new ideas about a new product. In most organizations, there is an ideation team that develops the ideas. The employees may choose only a handful of ideas. The R & D team may also develop these ideas. External sources like their distributors and suppliers can also contribute. In most cases, these have to meet client demands.
Here, analysis and filtering of ideas take place. Officials keep the best ones and discard the rest. The companies aim to look for ideas that can be profitable products.
2) Concept development
After selection of an idea, the company has to transform it into a concept. The marketer then creates alternative product concepts from the new concept. The company then compares the different alternatives. They observe whether these alternatives will meet the customers needs.
3) Business analysis
Here the officials analyse the sales, profit and costs associated with the product. By this, they are able to understand whether the product is commercially feasible. Moreover, it has to meet the users demands. For this, they conduct market surveys. Sales history of similar products is also analyzed.
Additionally, it is important to identify possible risks. This helps to reduce problems and developmental errors in the future.
4) Product development
If the product idea passes through all the previous stages, it is converted into a tangible product. This helps to check how well it might work in the market. Thus, the R&D team might launch a prototype model of the product concept.
Additionally, the marketing team develops a strategy for distributing the product. The finance team will calculate the finances associated with it. The advertising team will develop a strategy for promoting the product.
5) Test marketing
For obtaining customer feedback, the company launches a prototype. Through this, the officials are able to test different strategies. These include marketing, positioning, advertising, targeting, packaging, and financing. The customer feedback is taken into account.
According to this data, the developers make the required changes and enhancements.
6) Commercialization
After test marketing, the company officials get a basic understanding of how the product might work in real life. So, before the commercialization of the product, all the major decisions are taken. This will include the identification of the target markets. The launch strategies are also prepared. After that, all the departments collaborate and work on the product.