The process of taking a product or service from conception to market is known as new product development (NPD). It outlines a series of stages that new products typically go through, beginning with ideation and concept generation and ending with the product’s market introduction. Depending on the nature of the business, some of the stages may overlap or vary.
Let us review the 8 Key Stages of the new product development process:
Idea Generation is the process of brainstorming and coming up with new and innovative ideas. Helping your business thrive from within starts with idea generation. A business must constantly generate and implement new ideas in order to exist and evolve. Sticking to what you know may work for a while, but the competition will eventually overtake your company and cause it to stagnate.
Idea Evaluation entails weeding out any ideas that aren’t worth pursuing. It is a simple matter of screening or reading through a batch of ideas and selecting those you believe will work best for your firm. To be able to achieve the full benefit of the idea evaluation, then you should always strive for having as many ideas as possible to choose from.
Following idea generation and screening, Concept Development is the detailed form of the idea, described in terms that are relevant to customers. Which clients may be targeted, who will buy this, and so on are some of the foundations for concept development. It’s a method for ensuring that buyers view your product or service in the marketplace the way you want them to.
Marketing Strategy Development is the fourth stage of the marketing process. In this stage, the business seeks to come up with ways to launch a potential product into the market and determine the price, prospective income figures, as well as advertising and distribution networks. Marketing strategies may differ from one business to the next and should be customized to suit the needs of the particular company.
A thorough Business Analysis or test is conducted on the product concept in order to determine predicted sales and revenue, as well as assess risk and determine whether the product’s production is financially possible. The company’s goals are considered, and if they are met, the product progresses to the next stage.
Test Marketing is the next-to-last stage of the new product development process, and it entails putting the product and the suggested marketing program through its paces in real-world scenarios. This stage gives the company insight into how the product will be launched to the market, advertised, produced, packed, distributed, and eventually sold to clients, allowing for any necessary optimizations.
The process of Commercialization is the last step in the product development process. The business management may opt to proceed with the product launch or put it on the backburner based on the information obtained throughout the test marketing phase. The product is finally introduced into the market if the go-ahead is given, and this procedure is known as commercialization. This period frequently results in significant costs, both in terms of initial infrastructure investments and sales efforts and advertisements.
A company must innovate in order to truly compete, fight back, and eventually prosper. The ability to target new customers, improve market share, sell more, and increase revenue streams can all be gained by developing new products. Meanwhile, redesigning existing products allows business to save costs, yield higher margins, and eventually more profits.
When was the last time your business developed a NEW product? Does your firm have a clear product development process? Contact us today to learn more about how we can ensure your product’s success from day one!