How to Develop a New Product from Concept to Market?

How can you develop a Product? How is a Concept concerted into a Product? What are the Stages of Product Development?
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The development of a product accompanies the need to develop concrete methods to establish an innovative market. A new product and its development are a conscious attempt to develop a new concept to a meaningful output. The stages of product development are organized toward the creation of the product. So, how to develop a new product from concept to market? Continue reading to learn about it.

1. What is Product Development Process?

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Product development is a combination of various steps and procedures simultaneously resulting in an output. Every product development process includes a detailed understanding of the idea or concept that leads to research. The research then allows the development of the product, which happens gradually. Then, the product is made available in the market. This process involves many steps that would eventually explain how to develop a new product in the market. (See What is Empowered Consumerism?)

2. What are Product Development Techniques?

The process of product development begins with the identification of the project. The project’s ideals include the background of the idea or concept, objective, scope, constraints, and assumptions. Certain methodologies can be adapted to improve product development:

  • The Kanban process works based on agility in the progress of the work. The Kanban method focuses on the efficiency of the product.
  • Another one is the scrum process which is also an agile-based framework. It helps in the planning of the product development. Hence, it explains how to develop a new product better than the Kanban method.
  • The documentation of individual steps in the product development framework constitutes the waterfall methodology. However, this method is not accepted nowadays due to linearity. This is because the market depends on the nature of the consumers. (See What is Production Concept in Marketing?)

The waterfall method consumes more time than the agile methods used in the Kanban and Scrum techniques. Unique features are included in the agile method, while the waterfall method excludes innovative approaches. Even though the methods used in both the techniques are feasible and similar, the waterfall method allows for a planned framework that undergoes minimum changes in the long run. (See How predictability affects marketing?)

3. What are the 5 Stages of Product Development?

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The 5 stages of product development summarize the lengthy process of product development and management.

  • The first stage in product development is the identification of the idea. The idea of the new product comes from business enterprises, newspapers or magazines, and the customers in the market. It is the primary stage in the case of product development.
  • The second stage comprises screening, where the ideas are filtered to obtain useful ideas that can be conceptualized into a new product.
  • The third stage includes the development of the idea and research. The concept is studied on a broader level. Then, the industry uses the SWOT analysis to understand the nature of the process, its strengths, and weaknesses. This stage also recommends a better approach regarding how to develop a new product. (See Why is Quantitative Research Important?)
  • The fourth stage is product development. In this stage, the vital ideas are researched in many ways and completely analyzed. This conceptualized idea is turned into the concept of a new product. The product is designed and tested before it enters the manufacturing sector. 
  • The last stage is the marketing of the product. The result of the testing would decide the production of the product. The product launch is also influenced by the process of concept development and the analysis of the same. Also, check out what is the Correct Order of Steps in the Scientific Method?

4. What are the 7 Stages of New Product Development Process Examples?

The seven stages of product development process to better understand how to develop a new product are idea generation, the definition of the product, prototyping, initial design, validation, testing, and marketing.

A. Idea Generation

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How to develop a new product starts with idea generation and deals with the identification of the target and the process of product development. The SCAMPER method allows the substitution, modification, and revision of the adopted standards in product development. The contribution in this step is given by suppliers, consumers, retailers, and business people regarding the expansion of the industry. The distribution line of many companies was developed on the feedback given by customers and the organization’s members. For example, the different brands of Horlicks products like chocolate Horlicks, junior Horlicks, Mother’s Horlicks, etc. (See Different types of Customers in Marketing and Retail)

B. Screening of the Idea

Screening of the idea is an important step before the product is designed and manufactured. However, errors are usually noticed in this stage. The valuable suggestions from small-scale workers are usually screened out, and the invaluable suggestions from high-level businessmen are not screened. This reflects the inefficacy while using the screening method.

For example, IBM refused to take suggestions from Bill Gates because he was a novice in the field. But Bill Gates eventually built Microsoft, a company that gained larger profits in the future. The idea of Colgate tooth powder is that rural and semi-urban areas are covered in the distribution line. The design of the product is modified and redesigned to serve a purpose. Also, check out why Netflix is so popular?

C. Concept Development and Testing

The concept of product development and testing follows the screened ideas and designs of the product. For example, if the Dairy Development Corporation in Delhi wants to distribute milk powder as a substitute for milk, the many questions can be charted out of the concept. Some of these questions are whether the product is feasible and nutritious and will be helpful to the community. Must read how to build the entrepreneurial mindset?

D. Marketing Strategy and Development

The fourth step lies in marketing strategies and development. This can be understood through the distribution of the kulfi mix by Milkmaid company in the market. This is a new product. The product testing was achieved through the free distribution of the kulfis to the consumers. This is used as a survey where consumer responses develop the next stage of product development. (See What are the effects of referral and recommendation in marketing?)

E. Business Analysis

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Business analysis is the fifth stage where economic development status is visualized. The analysis of investment, capital, profit, loss, and sales are studied, and the new product prospects are introduced. The product is designed if the industry’s objectives match the study. For example, an automobile company selling different car brands will have to identify the margins of profit and loss in the competitive market before designing the new brand. (See Why marketing research can give inaccurate results?)

F. Product Development and Testing

The crucial step in this process is a product development and testing. The development of a product is done in the research and development department. Once the objectives are organized and the model of the product is ready, it undergoes testing. Testing gives the necessary stability to the product. Must read how do Solar Powered Lights work?

For example, Kinetic Motors is a Pune-based company that invested crores of rupees in its research and development sector to design a small car. The purpose lies in the profit and sales strategies that can help in the large-scale production of the product. (Also read Fascinating History of Reese’s Peanut Butter Cups)

G. Commercialization

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The last and the seventh stage in product development is the commercialization of the product. In this stage, the question of how to develop a new product is completely processed. The company manufactures its product if it passes the testing. Certain business strategies are required in this step as well. Must read what is the Best Lava Lamp to Buy?

Advertisements, sales promotion, and arranging machinery for production are all essential strategies that contribute to the success and profit of the product. For example, the chocolate products of Cadbury are advertised in the media from time to time. You might have noticed them in every marketplace, implying the significance of sales promotion. (See Is Ronald McDonald Real?)

All these seven stages add to the production of an output that the consumer consumes. However, the product can also fail if inefficient analysis and research are done. Failure is also expected if the target audience is not satisfied with the product. Sometimes, higher costs can also affect profit on a large scale. But if you are well aware of how to develop a new product, and the product is adequately researched and modeled, then the advantage of marketing and good advertising skills would ensure success. (Also read How Fast does the Fastest Car go?)

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