Marketing
Product Development Process
The product development process involves the steps taken to bring a new product from concept to market. It typically includes idea generation, market research, design, testing, and commercialization. This process is crucial for companies to create successful products that meet customer needs and achieve business objectives.
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12 Key excerpts on "Product Development Process"
eBook - PDF- John R. Bessant, Joe Tidd(Authors)
- 2018(Publication Date)
- Wiley(Publisher)
The New Product/Service Development Process 119 9.0 The New Product/Service Development Process As we’ve seen, the process of new product or service development – moving from idea through to successful products, services or processes – is a gradual one of reducing uncer- tainty. The journey involves moving through a series of problem-solving stages around scanning, selecting, and implementation, linking market- and technology-related streams along the way. At the outset, anything is possible, but growing commitment of resources during the life of the project makes it increasingly difficult to change direction. Managing new prod- uct or service development is a fine balancing act between the costs of continuing with pro- jects, which may not eventually succeed (and which represent opportunity costs in terms of other possibilities), and the danger of closing down too soon, eliminating potentially fruit- ful options. With shorter life cycles and demand for greater product variety pressure is also placed upon the development process to work with a wider portfolio of new product oppor- tunities and to manage the risks associated with progressing these through development to launch. These decisions can be made on an ad hoc basis, but experience and research suggests some form of structured development system(with clear decision points and agreed rules on which to base go/no-go decisions) is a more effective approach. For start-ups, the idea of “lean start-up” has grown in popularity, essentially breaking down new venture formation into a series of short learning cycles, experimenting and pivoting towards something which will work. But the same challenge exists in established organizations seeking to update their product or service range or renew their processes. Attention on internal mechanisms for integrating and optimizing the process is critical, such as concurrent engineering, cross-functional working, advanced tools, early involvement, etc.
eBook - PDFStrategic Marketing Management in Asia
Case Studies and Lessons across Industries
- Syed Saad Andaleeb, Khalid Hasan(Authors)
- 2016(Publication Date)
- Emerald Group Publishing Limited(Publisher)
It can then estimate minimum and maximum sales to assess the range of risk. After preparing the sales forecast, management can estimate the expected costs and profits for the product, including marketing, R&D, operations, accounting, and finance costs. The company then uses the sales and costs figures to analyze the new product ’ s financial attractiveness. Product Development It refers to developing the product concept into a physical product to ensure that the product idea can be turned into a workable mar-ket offering. For many new-product concepts, a product may exist only as a word description, a drawing, or perhaps a crude mock-up. If the product concept passes the business test, it moves into product development. Here, R&D or engineering develops the product concept into a physical product. The product develop-ment step, however, now calls for a huge jump in investment. It will show whether the product idea can be turned into a workable product. The R&D department will develop and test one or more physical versions of the product concept. R&D hopes to design a prototype that will satisfy and excite consumers and that can be produced quickly and at budgeted costs. Developing a successful prototype can take days, weeks, months, or even years depending on the product and prototype methods. Often, products undergo rigorous tests to make sure that they perform safely and effec-tively, or that consumers will find value in them. Companies can do their own product testing or outsource testing to other firms that specialize in testing. Marketers often involve actual customers in product testing. Test Marketing Test marketing is the stage of new-product development in which the product and its proposed marketing program are tested in rea-listic market settings. New Product Development 233
eBook - PDFDesign for Profitability
Guidelines to Cost Effectively Manage the Development Process of Complex Products
- Salah Ahmed Mohamed Almoslehy(Author)
- 2018(Publication Date)
- CRC Press(Publisher)
19 chapter two Dimensions of and approaches to managing the Product Development Process According to authors of research papers that argue the design process significantly influences the quality of product performance, the design process consists of multiple intertwined factors: organisation-wide, prod-uct introduction process, design process, and individual-level (Browning, 1998). Accordingly, in the current customer-driven and demand-pull era, the first of these, organisation-wide factors, requires that the organisation needs to be managed strategically in terms of product portfolio manage-ment such that product development meets customer needs while at the same time coping with manufacturing constraints. Second, at the prod-uct introduction process level, all product development efforts should be integrated. Third, at the design process level, the designer should under-stand customer needs and market trends and translate them into a physi-cal form that conforms to the company’s perceived brand image (Cohen et al., 1996; Bayus, 1997; Erhun, 2007). Consequently, the product develop-ment activities and strategies should satisfy customer needs and expecta-tions. Lastly, individuals should be supervised and inspired, effectively creating a paradigm shift in which managers become facilitators, and the mindsets of individuals are changed and integrated gradually. This view identified the importance of the design process to the quality of product performance but did not explore details of the relevant design activities and strategies. Very recently, that view was supported by Paladino, who highlighted the importance of identifying the relationship between the success and the development process of new products as a research gap in the design management research area (Paladino, 2007).
eBook - PDF- Barton A Weitz, Robin Wensley, Barton A Weitz, Robin Wensley(Authors)
- 2002(Publication Date)
- SAGE Publications Ltd(Publisher)
Even software products such as Microsoft Word or Netscape require disaggregated, but coor-dinated processes involving hundreds of developers (Cusumano & Selby, 1995; Cusumano & Yoffie, 1998). Competitive pressures mean that time-to-market has been proposed as key to new product 8 Product Development – Managing a Dispersed Process E L Y D A H A N and J O H N R . H A U S E R success as has marketing’s orientation toward customer needs and customer satisfaction (Smith & Reinertsen, 1998). Because products are marketed throughout the world, firms face the tradeoff between standardization for cost reduction and variety for satisfying a broad set of customers. This has expanded the need for marketing to look beyond the single product to focus on the product platform (Moore et al., 1999). In this chapter we look at the state of the art in research that addresses these new challenges for the marketing community. We begin with an overview of the integrated end-to-end Product Development Process, indicating marketing’s role in addressing the challenges of developing profitable products (and platforms). The remainder of the chapter addresses specific research challenges relating to the end-to-end process. We organize the remaining sections around the various stages of development, recognizing that in practice, these stages are often iterative and/or integrated. Specifically we address, in order, the strategic end-to-end product develop-ment process, the fuzzy front end of customer oppor-tunity identification and idea generation, the process of concept selection and detailed design and engi-neering of products and processes, the testing phase where concepts and products are prototyped and tested, and the enterprise and organizational strategy necessary for success. We close with a vision of the future of research on product development.
eBook - ePub- Kenneth Kahn(Author)
- 2014(Publication Date)
- Routledge(Publisher)
All the steps of a Product Development Process also are not necessarily delineated in the given schematic of the Product Development Process. Many times, bottlenecks due to technology problems or market changes force a change in the expected course of action.Many companies, nonetheless, provide a schematic of their Product Development Process to frame expectations for their product development initiatives. In this way, company personnel understand the general steps and criteria necessary to get products to the marketplace. The following are criteria that any good Product Development Process should have:• The process should provide some structure of checkpoints along the way.• The process should allow the product development team and its support group substantial degrees of freedom.• The new Product Development Process must be flexible to accommodate changing conditions.• The new Product Development Process must deal with especially critical points in development.• The new Product Development Process should integrate the team with the rest of the firm and the world.• The new Product Development Process should permit a smooth launch.• The new Product Development Process should provide for organization learning.Note that even if a Product Development Process exists, companies can abuse how the process is used. These abuses include the following:• Too much faith in the product being developed• Lack of concern for the customer• Faulty research (skewed findings)• Meeting technical needs and certain customer needs, but not all customer needsSpecial attention needs to be taken to ensure that these abuses do not emerge, or else the respective Product Development Process will not reach its potential for success.Implementing a Product Development ProcessWhile many companies have a structured Product Development Process, other companies do not have a process. There also are situations where a current Product Development Process should be revised to be more effective.
- Rosanna Garcia(Author)
- 2014(Publication Date)
- Auerbach Publications(Publisher)
This looping saves time by overlapping phases and rapid recycling through the development activities. The challenge is to take the product, market, technology, com-petition, and corporate culture into account in the organic development process in order to result in sales and profit growth, along with a good ROI. Planning, specification Release to manufacturing Iteration 1 Iteration 2 Iteration 3 Iteration 4 Concept Prototype Test Design Figure 1.7 Looping NPD process. (From Endnote 30. With permission.) 16 CREATING AND MARKETING NEW PRODUCTS AND SERVICES What Is a New Product Exactly? How Can They Be Classified? How to customize the new product process depends in part on what kind of new product you are dealing with. So, first let’s define innovation and then look at their differences. An 1991 Organization for Economic Cooperation and Development (OECD) 31 study on technological innovations best captures the essence of innovations from an overall perspective: “Innovation” is an iterative process initiated by the perception of a new market and/or new service opportunity for a technology-based invention that leads to development, production, and marketing tasks, which strives for the com-mercial success of the invention. This definition addresses two important distinctions: (1) the “innovation” process comprises the technological development of an invention combined with the market introduction of that invention to end users through adop-tion and diffusion, and (2) the innovation process is iterative in nature and, thus, auto-matically includes the first introduction of a new innovation and the reintroduction of an improved innovation. New products are the outcome of this process. A new product is many things to different people. We define it as an innovation brought to the marketplace that is new to the market or new to the firm.
eBook - PDFFood Product Development
Based on Experience
- Catherine Side(Author)
- 2008(Publication Date)
- Wiley-Blackwell(Publisher)
When and how to involve the members of the team, as well as who those members should be or represent, will be the subject of this chapter. PRINCIPLE Any food product development program and process should be an element of the marketing strategies of the company. These programs have to fit the organization’s goals and objectives. This concept becomes elusive if and when the product development effort is driven by one ideal and not a group effort. A single individual or group within an organization can very easily focus the efforts in a misguided direction if that individual works in isola-tion from the organization and its goals. 13 14 CHAPTER 2 PROCESS As stated before, the initial step in product development is generating the idea, or product concept, which will be the basis for the product develop-ment effort. In this case, the first objective to verify: Is our product concept or idea, prototype, or even a competitor’s prod-uct—if being considered—in accordance with the corporate goals and objectives? Normally the easiest way of verifying that the concept falls within the corporate objectives is confirming what those goals and objectives are. This is easier said than done. Experience indicates that many corporations, espe-cially those of medium and small size, do not have clearly expressed goals and objectives. This is true particularly in the areas of product develop-ment. It is very simple to find a product that fits in a category, which in cer-tain ways is similar to those the corporation covers, and thus, in the minds of some employees, within the company’s objectives. How many times have we read that the objective of the company is “Consumer Satisfaction”? This does not express or even imply with what kind of products or services the customer should be satisfied. After the company’s goals and objectives have been agreed upon, specif-ically in the area of products or services, the product development effort can start.
eBook - ePubTechnology Entrepreneurship
Taking Innovation to the Marketplace
- Thomas N. Duening, Robert A. Hisrich, Michael A. Lechter(Authors)
- 2020(Publication Date)
- Academic Press(Publisher)
A technology venture is built around a new technology product/service that solves a particular problem and by doing so fills a specific need. This chapter addresses the development of a new technology product/service by first discussing the product planning, development process, and the idea development process. Then the concept of newness and its impact is described followed by the opportunity assessment plan; a methodology for accessing a product/market opportunity. The chapter concludes with a discussion of the impact of rapid technology change that is occurring today and disruptive technology.Product Planning and Development
A standard approach used by many technology entrepreneurs to evaluate new products/services is the product planning and development process. This process, indicated in Fig. 5.1 , consists of four stages, with an evaluation being done at the end of each stage:(1) idea stage, (2) concept stage, (3) product development stage, and (4) test marketing stage. To work effectively, evaluation criteria must be established and employed at each stage to either reject an innovation or allow it to proceed to the next stage. This is essentially the stage-gate Product Development Process and shown in Fig. 5.1 .Figure 5.1 The product planning and development process.Source : Hisrich, R.D., Peters, M.P., Shepherd, D., 2013. Entrepreneurship 9E . McGraw-Hill/Irwin, New York.The first stage, the idea stage,1 is when the innovation is formulated and developed. There are many ways these innovative ideas occur including the innovation comes from observing trends. There are several trends occurring today that will provide the opportunity for new innovations.2
- Aaron L. Brody, John B. Lord, Aaron L. Brody, John B. Lord(Authors)
- 2007(Publication Date)
- CRC Press(Publisher)
78 Developing New Foo Pro ucts for a Changing Marketplace Product definition phase A vision of the company's directon: Start: strategic plan markets served, market positioning, competitives Market opportunity environment, assessment regulatory hurdles, Consumer research core competences, which characterizes profitability targets etc. the market opportunity Product business plant A document describing the market opportunity and the programme required to Product definition realize the opportunity The integration of consumer perceptions, business objectives, product definition requirements and regulatory requirements Product implementation phase Prtoptype development Development of a works like and looks like product prototype Market strategy which meets the established and testing business objectives Forecasts of long run sales are Scale-up and made based on trial production market test analysis which predicts trial Manufacturing of the new and repeat purchase product and developmet intent of a total quality programme Product introduction phase Product introdution Led by sales and supported by marketing and distribution functions, the product at this milestone is ready to be revealed to consumers in its final form Finish: product support Build product success and repeat business by feedback to other functional areas F GURE 4.2 Milestone structure. 79 The Foo Pro uct Development Process Prior to the early 1960s, there was frst generation R&D, which can be defned as the strategy of hope. A research center was established, usually separated in distance from the main activities of the corporation, whose mission was to come up with interesting phenomenon. Work was self-directed, with no explicit link to business strategy. R&D activities were a line item in the corporate budget. If something came out of the effort, so much the better. However, the attitude was fatalistic—expectations usually were nonspecifc.
eBook - PDFManaging Innovation
Integrating Technological, Market and Organizational Change
- Joe Tidd, John R. Bessant(Authors)
- 2020(Publication Date)
- Wiley(Publisher)
and K.B. Clark, Revolutionizing product development: Quantum leaps in speed, efficiency and quality . 1992, New York: Free Press; Wheelwright, S.C. and K.B. Clark, Creating project plans to focus product development. Harvard Business Review , 1997. September–October 10.1 Processes for New Product Development 353 3. Product development – translating the selected concepts into a physical product (we’ll dis-cuss services later). 4. Product commercialization – testing, launching and marketing the new product. CONCEPT GENERATION Much of the marketing and product development literatures concentrate on monitoring market trends and customer needs to identify new product concepts. However, there is a well-established debate in the literature about the relative merits of ‘market-pull’ versus ‘technology-push’ strat-egies for new product development. A review of the relevant research suggests that the best strategy to adopt is dependent on the relative novelty of the new product. For incremental adap-tations or product line extensions, ‘market pull’ is likely to be the preferred route, as customers are familiar with the product type and will be able to express preferences easily. However, there are many ‘needs’ that the customer may be unaware of, or unable to articulate; and in these cases, the balance shifts to a ‘technology-push’ strategy. Nevertheless, in most cases, customers do not buy a technology, they buy products for the benefits that they can receive from them; the ‘tech-nology push’ must provide a solution for their needs. Thus, some customer or market analysis is also important for more novel technology. This stage is sometimes referred to as the ‘fuzzy front end’ because it often lacks structure and order, as discussed in Chapter 9, but a number of tools are available to help systematically identify new product concepts, and these are described below. The research note on concept change for radical products illustrates this.
eBook - PDFManaging Innovation
Integrating Technological, Market and Organizational Change
- Joe Tidd, John R. Bessant(Authors)
- 2018(Publication Date)
- Wiley(Publisher)
Source: Gemser, G. and M. Leenders, Managing cross-functional cooperation for new product development success. Long Range Planning , 2011. 44 (1), 26–41. 350 CHAPTER 10 Creating New Products and Services is sufficient to discriminate between the various factors that must be managed at different stages [2]: 1. Concept generation – identifying the opportunities for new products and services. 2. Project assessment and selection – screening and choosing projects that satisfy certain criteria. 3. Product development – translating the selected concepts into a physical product (we’ll discuss services later). 4. Product commercialization – testing, launching, and marketing the new product. Market knowledge Outline concept Detailed design Testing Launch Technological knowledge FIGURE 10.2 Development funnel model for new product development. CUSTOMER NEEDS IDEAS GATE GATE GATE GATE GATE STAGE 1 STAGE 2 STAGE 3 STAGE 4 STAGE 5 Filter projects to product/ process development Filter projects to business opportunities Filter ideas to preliminary investigation Filter products to limited launch Filter products to international marketing International Marketing Test Marketing Product Development Concept Formulation Idea Formulation FIGURE 10.1 Stage-gate process for new product development. Processes for New Product Development 351 Concept Generation Much of the marketing and product development literatures concentrate on monitoring market trends and customer needs to identify new product concepts. However, there is a well-established debate in the literature about the relative merits of “market-pull” versus “technology-push” strategies for new product development. A review of the rele-vant research suggests that the best strategy to adopt is dependent on the relative nov-elty of the new product.
eBook - PDFIntegrated Product and Process Design and Development
The Product Realization Process, Second Edition
- Edward B. Magrab, Satyandra K. Gupta, F. Patrick McCluskey, Peter Sandborn(Authors)
- 2009(Publication Date)
- CRC Press(Publisher)
This requires individuals and companies to reexamine how they go about creating products and services and how these products and services can be brought to the marketplace. During the last 30 years it has become clear that the way to do this is through an integrated approach to the product realization process. This approach tends to do the following: “flatten” organizational structures; involve many more constituencies in the process at the very beginning; place greater emphasis on the customer, product quality, cost, and time-to-market; use a large amount of simultaneity in the realization pro-cess; and require organizations to be creative and innovative. These new approaches have been developed to eliminate situations and conditions that resulted in poor corporate performance and poor customer satisfaction. Some examples of these situations were inconsistent product quality; slow response to the marketplace; lack of innovative, competitive products; noncompetitive cost structure; inadequate employee involvement; unresponsive customer service; and inefficient resource allocation. In its place, these new approaches have transformed many companies into entities that are able to Respond quickly to customer demands by incorporating new ideas and technologies • into products. Produce products that satisfy customers’ expectations. • Adapt to different business environments. • Generate new ideas and combine existing elements to create new sources of value. • 2 Integrated Product and Process Design and Development At various stages in the evolution of product development in the last four decades, various descriptors have been used to indicate that an improved method was being implemented to design and manufacture products. The descriptor that will be used here is the integrated product and process design and development (IP 2 D 2 ) team method.
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