What is Product Development?
What is Product Development?Nowadays, in the conditions of rapid growth of technology, scientific discoveries, new materials, new knowledge, products quickly become obsolete, entire industries are being squeezed out of the market, recall polaroid cameras with instant photo printing, digital cameras quickly dealt with them, and there are many such examples. Today, new product development is more relevant than ever. Moreover, not only some special employees are involved in product development strategy but absolutely all company employees and, to a greater extent, senior staff, such as top managers, general director, technical director, chief engineer, chief technologist, department heads and many others.
A new product is a product, a service that has no analogues in the existing market. This is a benefit for the client. Good product development is also a new and better way to solve customer problems.
An important characteristic is the degree of novelty of the product: a product giving birth to a new market, a product with better characteristics, a new application of the product, a product with lower production costs, a product with additional functions, with a new design, new packaging, etc.
What is the first step in the new product development process?
The first step in product development processes is developing a strategy. A study of the process of developing a new product in companies showed that over 75% of firms have a specific strategy for developing new products that allows them to direct and control this process.
At this stage, strategic requirements are identified that should be met by the ideas of a new product, for example, maintaining market share or maintaining a leading position in the field of technology.
New product development is one of the most important tasks for a company that seeks to maintain technological leadership. Once the strategic roles of the new products are defined, you can set financial requirements — or “barriers” that new products must overcome, including sales, gross margin, and return on investment.
What is the last step in the new-product development process?
The last step of development processes is commercialization. At this stage, the company directs all its efforts to market a new product. The novelty becomes a part of the promoted product line and, along with other products, takes its place in catalogs, price lists, and dealer registers.
The marketing program of a new product requires careful identification of market segments, development of short and long-term marketing tasks and training of its own sales staff and distributor sellers. Full attention is required for such details as advertising, catalogs, supporting materials, demonstration samples, etc.
Positioning is a central strategic issue of product design definition in marketing new products. Positioning allows the company to occupy its niche by emphasizing certain product properties in comparison with competitors' products and formulating a value proposition.
In consumer marketing, positioning is carried out mainly through advertising and a sales promotion strategy. In industrial marketing, positioning is carried out mainly due to the customized package of services that accompany the product itself, although advertising and promotion can also be important promotion tools. Positioning is necessary to complete product development and management in the industrial segment.
What is the product development life cycle?
A typical product life cycle consists of several stages:
- Development and implementation of product design ideas;
The growth stage of product design is characterized by the market perception of the product, growth in demand for it, growth in sales and profits.
The stage of maturity is the achievement by a company of maximum sales and profits due to the fact that the product is perceived by customers and there is a demand for it; competing products appear.
Saturation and decline is a sharp decline in sales and profits, the product is removed from production and replaced with a more perfect one; withdrawal of goods from the market.
What is product development strategy?
Specialists of development and management association must carefully work out each stage of the development cycle. A product strategy is a selection, definition, and design (economic and quality reliability of goods). The goal of a product marketing strategy is to provide a competitive advantage to the product. By creating a clear strategy for developing new products, top management can eliminate the occurrence of unpleasant situations.
The chief needs to mind the best practices to determine which products and which markets should focus on. It should formulate what exactly the company seeks to achieve with the help of new products: the receipt of large amounts of cash, a dominant position in the framework of a certain market share or some other goals. It should clearly state how efforts should be distributed between the creation of original products, the modification of existing products and the imitation of competitors' products.
How to design a product?
Lots of people are seeking for useful information on how to design a product. To create solutions that will truly improve people's lives and help them in what they do, you need to know the wishes of your audience, learn from other professionals, identify hidden opportunities, and finally, better understand yourself to increase personal productivity and job satisfaction.
You can learn how to design your own product by ceasing to think of yourself as a “product developer” and instead starting to think as a “behavior developer”. The difference is as follows:
From the perspective of a product developer, we think that people know what they want and act accordingly. From the perspective of a behavior developer, we know that people's preferences vary depending on the context.
From the perspective of a product developer, we believe that we should motivate people to increase their awareness. From the perspective of a behavior developer, we know that motivation alone is not enough to induce a person to a specific action.
Gain new knowledge of what is product development process, look at examples of product development and do your best to impress people with the best product design.
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