New Product development

1.) Ideas Stage

Market researchers look for a gap in the market, and figure out how a new product can best meet customer needs. The business does research and development and analyses competitor products.

Gap in the market- An unmet consumer need or a group of potential customers who are not yet purchasing a good or service.

Research and development-Systematic activity combining both basic and applied research, and aimed at discovering solutions to problems or creating new goods and knowledge.

Competitor-Any person or entity which is a rival against another. In business, a company in the same industry or a similar industry which offers a similar product or service.

2.) Screening Stage

The business analyses the idea for the new product to see if it's easy to market, and to see if it'll make a profit. Market researchers find out what consumers think about the potential new product. A prototype is made to find out what the new product will really look like in real life.

Easy to market- How good the oppurtunity is to get the product on the market.

Profit-Any person or entity which is a rival against another. In business, a company in the same industry or a similar industry which offers a similar product or service.

Consumers think- Market researh is carried out to see what consumers think of the product and what their requirements are of it.

Prototype-A model of a product, almost like a sample

3.) Product Development Stage

The product is turned into a saleable product. The functional design of the product and the formal design are tuned up and made as good as possible.

4.) Value Analysis

The business tries to make the product good Value for money. They look at the economy of making, warehousing and distributing the product to make sure the whole process will be efficient and value for money-for the business and consumer.

Value-The monetary worth of an asset, business entity, good sold, service rendered, or liability or obligation acquired.

consumer-An end user, and not necessarily a purchaser, in the distribution chain of a good or service.

5.) Testing

Just before launch, the product is tested. A small batch of Pilot Products are made. Market research investigates customer reactions to the pilot products. If the public like it, the production line is tooled up to make the product. all systems are go-the business launches the product.

Pilot Products-Production line set up usually during engineering or manufacturing development, to test new methods, processes, and systems.

Product Launch-The debut of a product into the market. The product launch signifies the point at which consumers first have access to a new product.