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 1 Idea Generation 2 Idea Screening 3 Concept Development 4 Market Strategy 5 Feasibility Study 6 Product Design 7 Test Market 8 Market Entry

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.