The steps are clear when it is about marketing. Companies begin by choosing their target markets, then they concentrate on the segment, and last, they target the clients. From here, they can start creating new products. Many companies tend to follow these steps in developing their products:
- Idea Generation
Developing any new product begins with an idea. Companies can focus on the needs and the demands of the clients to generate ideas. Another option is to concentrate on their competitor’s choices. Having the information on why the products of a competitor sell better can elevate the likelihood of success for any new products that a business pitch. Last, various companies get ideas from creative individuals in top management. The best example for this is the late Apple’s CEO, Steve Jobs. He was famous for guiding Apple to develop a new product successfully.
- Idea Screening
It is not relevant for every idea to become a product. Because of this, companies have to sort out ideas. Enterprises can consider an idea to be promising and work on it, marginal and seek to refine it, or just weak and dismiss it. It is also critical for companies to avoid prejudicing the origin of an idea. Therefore, even if somebody like Steve Jobs offers an idea, the company should still be keen on the idea.
- Product Development Process
In the third step of the process, the idea of the product expands into many concepts. Businesses will re-do the process of screening to pick the best among them and match them against one another. Many companies will offer their ideas to focus groups and evaluate their responses. The products that perform better in the focus groups or experimental clients go to advancement.
- Marketing Strategy
When a company has selected a product, they will have to invest time to create its marketing strategy. Experts will determine the market size, the product’s demand, and revenue approximations. The efforts of the marketing team will be budgeted for, and they can pick channels of distribution.
- Business Model
Developing a business model is akin to developing a marketing strategy. The experts in the organization will approximate the costs and benefits and control the power of the product. Additionally, they will approximate the economic suitability of the new product.
At last, production starts at this point. The company will create various precursors and select which design will proceed to the next step. Also, the company will do a cost analysis once more to determine if it adds up to the approximations. And if the costs exceed the higher-limit estimates, the business may dismiss the project.
When the company, at last, possesses a physical product, the marketing team can start working. To begin, they can develop the name of the brand, packaging, and the message to market the product. They will also attach a price to the product.
- Product Launch
Commercialization is the last stage in the process of developing a product. The product is pitched, and an established strategy of marketing then follows to increase its potential of earning.
Although not every company is the same, the structure of product development tends to keep consistent across industries. Hope this helped making the journey clear from conception to launch.