1. Product Development & Planning

2. Recall the 4 P’s… Product Price Promotion Place After we have: Come up with a conceptual product idea Profiled our target market (“customer”) Performed a SWOT analysis (“competition”) …And the 2 C’s: Competition Customers

3. Let’s look at our 1 st “P”............... “PRODUCT”

4. New products are invented every day Created as the result of an idea Created to fill perceived “gap” in market To an entrepreneur, it leads to the question: “Why don’t I create and sell that product?”

5. “Refers to the systematic decision making related to all aspects of the development and management of a firms products” “A product is a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers and is received in exchange for money or some other unit of value.” Product (Definition): “Product Planning” (Definition):

6. For a new product idea to succeed: Desirable attributes for their target market Be unique If the new product isn’t, it is doomed to fail

7. After a new idea is discovered: research… This research will focus on answering: “Can we produce it?” “Can we sell it?”

8. New Products fall under two categories: 1. “Invention” 2.“Innovation” New devices Methods/Processes developed from research & experimentation An original solution (product / service) Arises as a result of changing/improving an existing product/service

9. Product Planning: Feasibility Research Is the idea or opportunity possible, practical and viable? Can it be done and is it worth it? Each element of the idea must be examined All ideas need to go through this research…. ….but to differing levels

10. Stages of Product Development This process involves 8 stages Key to bring a product to market (i.e.: sell it) Product development process begins if product is viable

11. An invention or innovation discovered Idea to produce a product or service not currently available Not all ideas are good ones (ie – New Coke, McPizza) Marketers need to test consumer reaction Focus groups, questionnaires, etc. 1.Idea Generation 2. Idea Screening

12. 3.Concept Development 4.Market Strategy If feedback is positive – prototype created Determines if product is possible Allows target market use and input Get feedback from user(s) Develop your marketing strategy Determine your target market Use the 4 Ps to optimally sell your product

13. 5.Feasibility Analysis / Study Is it “do-able” and worthwhile? »Materials / labour required »Price of production »Distribution channels »Cost of promotion “Can we make and sell this product and make money doing it?” Coincides with product design and market strategy stages Many questions are answered in this stage

14. What the product will look like Many factors: users, production needs, etc 7.Test Marketing 6.Product Design Test acceptance of the product Random sample of your target market Customer feedback: should we “go to market”

15. 8.Market Entry Sold in stores/online/other markets The “Product Life Cycle” begins Length of cycle depends on: consumer market Competition Further product advances

16. Summary “New” products are being continually created Feasibility Study and Product Development processes Need to create, plan and test ideas first Following this process = better chance of success

17. Why New Products Fail Some reasons: Not different Poor marketing plan Poor timing Poor product quality Target market too small

18. The End !!