Stages of Product Development

1. Idea Generation Use Research to come up with an Idea Product Mapping and Market Potential can be used

2. Idea screening Look at what failed in the past, improve or make brand new

3. Concept Development Designing prototypes Conduct more research

4. Market Strategy Establish Primary and Secondary Market (Using Demographics, etc) Develop Marketing Strategy and Marketing Plan

5. Feasibility Study Calculate the costs of advertising, promotion, distribution, transportation, storage, packaging and all other expenses Product must be one that the company can make and sell, that consumers want, and at a price they can pay, and at a profit for the company

6. Product Design Design the product to meet Primary Market’s needs What will your customers want

7. Test Marketing Company will give a limited amount of the new product for people to try The company will then have these people complete surveys, etc

8. Market Entry Product enters the Product Life Cycle

SPANX – footless pantyhose Stage How well did she perform this stage? 1 No initial research – her own idea, through her own experience 2 Research traditional pantyhose – associated problems 3 Visited knitting mills and Georgia Tech Univ – no prototype 4 Primary market – women/25-55/oprah watchers 5 Not done 6 Knew what customers wanted Chose a memorable name 7 Personal in-store demos 8 Oprah Appearance – caused $30,000 in sales