31/08/2016 EightSimpleStepsForNewProductDevelopment

July 22, 2013

Eight Simple Steps For New Product

Development
PRODUCT MANAGEMENT (HTTP://WWW.BUSINESS2COMMUNITY.COM/PRODUCT-MANAGEMENT)

by James Duval (http://www.business2community.com/author/james-duval) Follow@james_gkbcinc

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Developing a new product shouldnt feel like youre fighting in the dark. Theres an
easier way. What you need is a structured road-map that gives your business a clear path
to follow.

Actually developing the tangible product or service is only a small part of the new
product development process, which includes the complete journey from generating the
initial idea to bringing the product to market.

By setting out the steps involved, and sticking to them, your product development will
become a more focused and flexible approach that can be adapted for all different types
of products and services.

#1. Idea Generation

(http://www.cambridgemr.com/Expertise/NewProductDevelopment/IdeaGeneration/)

The development of a product will start with the concept. The rest of the process will
ensure that ideas are tested for their viability, so in the beginning all ideas are good ideas
(To a certain extent!)

Ideas can, and will come, from many different directions. The best place to start is with a
SWOT analysis, (Strengths, Weaknesses, Opportunities and Threats), which incorporates
current market trends. This can be used to analyse your companys position and find a
direction that is in line with your business strategy.

In addition to this business-centred activity, are methods that focus on the customers
needs and wants. This could be:

Under-taking market research

Listening to suggestions from your target audience including feedback on your

current products strengths and weaknesses.

Encouraging suggestions from employees and partners

Looking at your competitors successes and failures

#2. Idea Screening (https://www.boundless.com/marketing/products/new-product-

development--2/screening--2/)

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This step is crucial to ensure that unsuitable ideas, for whatever reason, are rejected as
soon as possible. Ideas need to be considered objectively, ideally by a group or
committee.

Specific screening criteria need to be set for this stage, looking at ROI, affordability and
market potential. These questions need to be considered carefully, to avoid product
failure after considerable investment down the line.

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#3. Concept Development & Testing (http://mnav.com/focus-group-center/concept-

testing/)

You have an idea and its passed the screening stage. However, internal opinion isnt the
most important. You need to ask the people that matter your customers.

Using a small group of your true customer base those that convert the idea need to be
tested to see their reaction. The idea should now be a concept, with enough in-depth
information that the consumer can visualise it.

Do they understand the concept?

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Do they want or need it?

This stage gives you a chance to develop the concept further, considering their feedback,
but also to start thinking about what your marketing message will be.

#4. Business Analysis (http://www.strategyconsultinglimited.co.uk/marketing-and-

advertising/new-product-development/)
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advertising/new-product-development/)

Once the concept has been tested and finalised, a business case needs to be put together
to assess whether the new product/service will be profitable. This should include a
detailed marketing strategy, highlighting the target market, product positioning and the
marketing mix that will be used.

This analysis needs to include: whether there is a demand for the product, a full appraisal
of the costs, competition and identification of a break-even point.

#5. Product Development (http://hbr.org/2012/05/six-myths-of-product-

development/)

If the new product is approved, it will be passed to the technical and marketing
development stage. This is when a prototype or a limited production model will be
created. This means you can investigate exact design & specifications and any
manufacturing methods, but also gives something tangible for consumer testing, for
feedback on specifics like look, feel and packaging for example.

#6. Test Marketing (http://smallbusiness.chron.com/three-major-disadvantages-

test-marketing-20409.html)

Test marketing (or market testing) is different to concept or consumer testing, in that it
introduces the prototype product following the proposed marketing plan as whole rather
than individual elements.

This process is required to validate the whole concept and is used for further refinement
of all elements, from product to marketing message.

#7. Commercialisation
(https://www.innovateuk.org/documents/1524978/2138994/Concept+to+Commercialis
ation+-+A+Strategy+for+Business+Innovation+2011-2015/f9debf80-dd43-4284-
be56-a11a3dda25a8)

When the concept has been developed and tested, final decisions need to be made to
move the product to its launch into the market. Pricing and marketing plans need to be
finalised and the sales teams and distribution briefed, so that the product and company
is ready for the final stage.

#8. Launch (http://businesscasestudies.co.uk/cadbury-schweppes/launching-a-

new-product-into-a-developed-market/the-launch-strategy.html)

A detailed launch plan is needed for this stage to run smoothly and to have maximum
impact. It should include decisions surrounding when and where to launch to target your
primary consumer group. Finally in order to learn from any mistakes made, a review of
the market performance is needed to access the success of the project.

New product development can be made much simpler and focused, with a higher
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31/08/2016 EightSimpleStepsForNewProductDevelopment
New product development can be made much simpler and focused, with a higher
likelihood of success, by following these steps to guide you.

Have you had any problems with product development? Share your hints and advice below.

(http://www.business2community.com/author/james-duval)

Author: James Duval

(http://www.business2community.com/author/james-
duval)

More by this author:

How Content Can Increase Conversions at Every Stage of the Buying Process
(http://www.business2community.com/content-marketing/content-can-increase-conversions-every-stage-
buying-process-0841676)
Launching a New Business? How Crowdfunding Could Fund Your Start-Up
(http://www.business2community.com/ nance/launching-new-business-crowdfunding-fund-start-0808270)
What is the Relationship Between Customer Service Quality and Market Share?
(http://www.business2community.com/customer-experience/relationship-customer-service-quality-market-
share-0772894)

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