Product Development & Planning

After we have: Come up with a conceptual product idea Profiled our target market (“customer”) It is time to move on to the 4 P’s in our marketing plan…… Performed a SWOT analysis (“competition”)

Let’s look at our 1 st “P” “PRODUCT”

“new” products are created as the result of an idea or perceived “gap” in the current world it usually arises from a need or want that can’t be immediately filled and leads to the question: “Why don’t I create and sell that product?”

refers to the systematic decision making related to all aspects of the development and management of a firms products A product is a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers and is received in exchange for money or some other unit of value. “Product” Definition: “Product Planning” Definition:

In order for a new product idea to succeed, it must be or have: Desirable attributes for their target market Be unique If the new product isn’t, it is doomed to fail

When a new idea is generated, the next stage is to do some research… This research will focus on answering: “Can we produce it?” “Can we sell it?”

When a “new” product idea is created, the “new” idea or product is either an “invention” or “innovation” 1. “Invention” 2.“Innovation” New devices, methods or processes developed from research and experimentation An original solution (product / service) that hasn’t existed up until you created it A product or service that that is new to the market, yet it arises as a result of changing / improving an existing product / service

“Feasibility Research” Research conducted to determine if a business idea or opportunity is possible, practical and viable “can it be done and is it worth it?” Each element of the new idea must be thought through in order to determine if the idea should be acted upon All ideas need to go through this research….but to differing levels

STAGES OF PRODUCT DEVELOPMENT This process involves 8 stages that every product needs to go through in order to “be brought to market”: If the “feasibility research” finds that the idea is worth pursuing and is “doable”, the product development process begins

An invention or innovation as a result of a gap in the current market An idea to produce a product or service not currently available Not all ideas are good ones (ie – New Coke, McPizza) Marketers need to test consumer reaction to their idea before they continue Throw the idea around and see what people think 1.Idea Generation 2. Idea Screening

3.Concept Development 4.Market Strategy If the feedback from consumers and your business associates is positive, a prototype or sample is created This stage will allow you to see if the product works and to allow your target market to use it / provide feedback for improvements, etc.. The development of your marketing strategy Determine your target market and how to use the 4 Ps to optimally sell them your product

5.Feasibility Analysis / Study At the end of the day, is it “doable” and worthwhile? Ie: »Materials / labour required »Price of production »Distribution channels »Cost of promotion This analysis will simply answer the following question: “Can we make and sell this product and make money doing it?” Often done at the same time as the product design and market strategy stages Many questions are answered in this stage

What the product will look like The design will depend on what it does and what the target market want 7.Test Marketing 6.Product Design Test acceptance of the product Usually occurs by offering the product to a random sample of your target market Customer feedback is used to improve the venture and determine whether the product should “go to market”

8.Market Entry The product is officially “in the market” and being sold to all The “Product Life Cycle” begins and it’s life will be determined by the consumer market, competition and further product advances

As a result, “new” products are being continually created as the result of new ideas In order to ensure success, marketers must perform a “Feasibility Study” and use the “Product Development” process to create, plan and test their ideas before committing them to market Following this process provides a new product with a much better chance of success

Why New Products Fail !! there are a variety of reasons for why a new product fails……here are the most popular: Not different Poor marketing plan Poor timing Poor product quality Target market too small

The End !!