New product process

New product process - steps 1 - 4

1. generation of ideas (concept)

The process of developing a new product begins with ideas or concepts. Where do new ideas come from? They can come from employees, vendors, current and potential customers, leaders, competitors, even relatives and friends.

ACTION: The product development group should have a system and / or set up a system to capture all ideas and create concepts based on the interests of the company.

2nd idea of ??screening

Step 2 is an idea study. This step is part of the review process "Yes" and "No". This process is important to reduce the concepts and select the ones that are decent. Depending on the company and the description of the approval, the process may take a few days or even weeks. The chosen concepts are those which, according to the company, will become profitable services or products.

ACTION: What happens to unselected concepts? They should be saved for future opportunities. A company should never throw ideas; They may be useful later or for a future client.

3. Development and test of the concept

"Yes" products enter the development and testing phase. What is the target market that determines which concept is developed and tested?

Develop the concept:

For example, if the concept is a widget, it's your target market, singles. Married couple Seniors, etc. If this is not the case, it will be difficult to test and present your business case.

Terms should be considered useful. The next step is to test the concepts.

Test the concept:
For testing, your target customers must be identified. Potential customers can test a concept in different ways, including an image of the product, a physical product test and the use of the product. Several questions should be asked during the test. including - is there a need for the consumer or the conditions?

ACTION: Find out your customers' needs to get accurate product test results.

4. Development of marketing strategy

In step 4, the team will develop a marketing strategy to promote the product / service. The marketing strategy should be carefully thought out and work with other teams in terms of cost, resources and timelines:

a) Who is the target market, expected sales and market share and expected return / profit for 1-5 years?

b) Short-term product / service plan - price (several financial models can be created for the price review), budget (including research, start-up costs, staff costs) for the first year.

c) Long term for product / service - sale, profit anticipation and possible exit.

ACTION: Create a short and long term plan.