Developing New Products.pptx - Product Development Guide PDF

VOCABULARY Market Saturationwhen a specific market served entire customers and no longer can create new consumer. Laggards Consumers who like to avoid change and rely on traditional products until t...

VOCABULARY Market Saturationwhen a specific market served entire customers and no longer can create new consumer. Laggards Consumers who like to avoid change and rely on traditional products until they are no longer available. New Product Development (NPD) Is the complete process of bringing a new product or service to market. New product development may be done to develop an item or to improve an item that is already estalished product. CHANGING CUSTOMER NEEDS : When firms add products, services and processes to their offerings, they can create and deliver value more effectively by satisfying the changing needs of their current and new customers or by keeping customers from getting bored with the current product offering and thereby switching to other brands. MARKET SATURATION : The longer a product exists in the marketplace, the more likely it is that the market will become saturated. Without new goods or services, the value of the firm will ultimately decline. MANAGING RISK THROUGH DIVERSITY : Through innovation, firms often create a broader portfolio of products, which help them diversity their risk and enhance firm value better than a single product can. “If some products perform poorly, others may do well”. FASHION CYCLE : In industries that rely on fashion trends and experience have short product life cycles. Apparel (clothing), arts (e.g. movies and music), books and software markets.. IMPROVING BUSINESS RELATIONSHIP : Innovation is not always targeted at the end user consumer market. It is sometimes used to improve relationships with suppliers and other intermediaries to enhance value creation. Diffusion of Innovation Is a theory that seeks to explain how, why, and at what rate the new idea and technology is spread. It explains the pattern and speed at which new ideas, practices, products, technologies and advancement spread through a population.  The main players in the theory are divided into five groups on diffusion of innovation curve. INNOVATORS, EARLY ADOPTERS, EARLY MAJORITY, LATE MAJORITY & LAGGARDS. PLENARY 1 - IDENTIFY THE ADOPTER SUMMARY  CRITICAL THINKING According to the Diffusion of Innovation theory, adoption follows a typical curve: innovators, early adopters, early majority, late majority, and laggards. Imagine you are launching a new, innovative technology product. If your goal is to maximize adoption quickly, how would you prioritize your marketing and outreach efforts to target the right group first? What strategies would you use to move from one group to the next in the adoption process?  VOCABULARY rototype An early sample, model or release of a product build to test a concept or process. The process of managing or running ommercialization something, principally for financial gain.  Product Development Process/Stages The product development process is a six stage plan that takes a product from initial concept to final market launch. This includes identifying a market need, PRODUCT DEVELOPMENT researching the competition, and PROCESS developing a minimum viable product (MVP).  6. 1. EVALUATION IDEA OF RESULT GENERATION 5. 2. PRODUCT CONCEPT LAUNCH TESTING 4. 3. MARKET PRODUCT TESTING DEVELOPMENT IDEA GENERATION Development of viable new product ideas Idea generation. is a creative process businesses use to generate new ideas, whether they're tangible or intangible. During product discovery, companies examine market trends, conduct research, and dig deep into users' wants and needs to identify a problem and propose innovative solutions. The more you understand your users and the market, the better your ideas will be succeed. CONCEPT TESTING Testing the new product idea among a set of potential customers Concept testing. is a research process businesses use to validate the new ideas, whether they're tangible or intangible. Once you’ve developed your concepts, test each of them with a select group of consumers. Concept testing is a great way to validate product ideas with users before investing time and resources into building them. i.e., share your concept with your prospective buyers to collect insights and gauge how viable the product idea would be in the target market. PRODUCT DEVELOPMENT Development of prototype and/or the product Product development. is a stage which consist of developing product concept into a finished, marketable product. This stage usually involves creating different type of prototype and testing it with users to see how they interact with it and collect feedback. During product discovery, the companies examine market trends, conduct research, and dig deep into users' wants and needs to identify problem and propose solutions. MARKET TESTING Testing the actual product in a few test markets Market testing. refers to the process of testing a product or service in a specific market or audience to gather data and insights before a full-scale launch. There are two testing methods: ALPHA TESTING: is software testing used to identify bugs before releasing the product to the public. BETA TESTING: is an opportunity for actual users to use the product and give their feedback about it. PRODUCT LAUNCH Full scale commercialization of the product Product Launch. is the process by which a new product is introduced into the market for initial sale. Product launch is a critical part of the broader commercialization stage. While the product launch focuses on the initial introduction of the product to the market, commercialization includes the entire timeline from product development to market saturation There are two launching methods: HARD LAUNCH: Full release Is the launch that target entire market with full marketing support and scale. SOFT LAUNCH: Segmented release Is the launch that target small piece of market to test the approach. EVALUATION OF RESULT Analysis of the performance of the new product & making appropriate modification. Evaluation of result is the process of assessing and analysing the product after launch to make appropriate modification. SUMMARY  SOURCES OF NEW PRODUCT Many firms have their own R&D IDEAS department in which scientist/engineers work to solve complex problem and Listening to develop new ideas. customers in both B2B & B2C markets An association, typically is essential for of several companies. (Including government, sucessful idea education institutions, and generation and other firms) product development. A firm takes a product, analyse it A firm buy the and create a rights to use a improved version, technology or idea which don’t of another firms. infringe the competitor’s patent. A firm often engage in A process where brainstorming during group firms hire people to work to generate idea. perform task from (no idea is immediately outside. accepted or rejected) PLENARY 2 - QUIZ  VOCABULARY Price Skimming It is a pricing strategy in which a firm charges high price for the product in the beginning and then lowers it. Product Life Cycle Product Life Cycle is the length of time from a product first being introduced to consumers until it is removed from the market. It is usually broken down into four stages; Introduction, Growth, Maturity, and Decline. 1. Introduction Stage 3. Maturity Stage Product launched into the market. Sales increase slowly and reach the highest figures. Sales grow slowly. Competition is at the maximum level as many new Informative advertising is done. substitution Firm might not earn a profit at this stage. Promotional pricing might be a good option. Price skimming may be used when the product is Profits are at the highest level & gets economies of new or no competitors. scale. Competitive pricing may be used if it already has Repetitive advertising is done to remind the lot of competitors. consumers. 4. Decline Stage 2. Growth Stage Sales start to decline. Sales grow rapidly. Profits start to come down. Persuasive advertising may be used. Advertising is reduced. Prices may be reduced if faced by stiff Marketing research it done to find out whether this competition. decline is permanent or temporary. Firm starts earning profits. (If permanent in nature, then stops production otherwise implement extension strategies.) 4. Extension Extension Strategy is the action Stage taken to extend the life of a Try to sell the product in product, by keeping the product different markets. Introduce new variations within the maturity stage, and should of the original product improve sales. Make small changes in the colour, design or packaging Start a new advertising campaign. Add more retail outlets to boost sales. SUMMARY WORKSHEET