Here we are going to see the product development and several phases it undergoes. When should a company consider the need to expand its catalogue of products or services? And because? The truth is that the current market, with a high level of competitiveness and a consumer profile that tends to change, requires active companies that are committed to adapting to the new demands of their sector, no matter what it is.
Technological advances, globalization, social movements all these factors can become new business opportunities or even affect, to a greater or lesser extent, the product that has been marketed to this day. Will the sales figures for your headphones hold up if the competition offers a cordless option, with greater autonomy and created with environmentally friendly materials? That is why product development is important.
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What Can Be The Duration Of This Process?
Being precisely a complex process, it is difficult to calculate how long it may take We could be talking from a few months to several years depending on the particularities of both the product or service itself and the sector where the company operates. For example, some industries work with stricter security protocols than others or consider production needs that are non-existent in other areas.
What Phases Usually Characterize This Product Development?
Philips Kotler and Gary Armstrong, leading experts in Marketing, differentiate 8 phases that must be addressed yes or yes in the process of product development. This is a generalization that can obviously be modified:
- Idea generation: It is a first step and consists, as its name indicates, in the systematic search for innovative ideas that can lead to new products. Both internal and external sources of information are usually used since, in reality, it is advisable to involve people from different areas who can contribute a greater diversity of points of view. It is common to schedule brainstorming meetings, that is, sessions where any participant can contribute ideas, no matter how crazy they are.
- Debugging ideas: Here the ideas that seem most viable are selected, which perhaps can respond to the needs of the consumer and, at the same time, guarantee economic benefits for the company.
- Proof of concept: If you already have a valid idea, it is time to develop it into a concept, in a kind of detailed “draft”.
- Development of marketing strategies: The design of the marketing strategy that will allow the launch of the product or service will be considered, from the definition of the target audience to the sales objectives or the budget for promotional actions.
- Business Analysis: The objective of this phase is to review key variables, such as sales estimation or product functions, to determine if they conform to the initial guidelines.
- Product development: Concepts must be turned into real products with the necessary financial and technical resources. Here you will see if you can actually get a profitable product.
- Test market: This is a test phase, that is, with the product defined and the marketing strategy clear, market situations are created where it is evaluated how they adapt before launch.
- Marketing: In this last stage, the management team of the company will have to decide whether the company will finally invest in the commercialization of this product and will assume the associated costs
This is how the product development occurs undergoing several phases as mentioned above.