Product Planning And Development Process 235bt

PRODUCT PLANNING AND DEVELOPMENT PROCESS Once idea emerges from idea sources or creative problem solving, they need further development and refinement in to final product or service to be offered. This refining process- the product planning and development process – is divided in to five major stages. Idea stage, concept stage, product development stage, test marketing stage and commercializing; it result in the product life cycle. Establishing evaluation criteria At each stage of product planning and development process, criteria for evaluation need to be established. These criteria should be broad, yet quantitative enough to screen the product carefully in the particular stage of development. Criteria should be developed to evaluate the new product in of market opportunity, competition the marketing system, financial factors and production factors. A market opportunity and adequate market demand must exist. Current competing producers, prices, and policies should be evaluated in their impact on market share. The new product should be compatible with existing management capabilities. The product should be able to be ed by and contribute to the company’s financial structure. The compatibility of new product’s production requirements with existing plant, machinery, and personnel should be determined. Entrepreneurs should formally evaluate an idea throughout its evolution. Idea Stage Promising new product ideas should be identified and impractical ones eliminated in the idea stage allowing maximum use of company’s resources. In the systematic market evaluation checklist method, each new product idea is expressed in of its chief values, merits, and benefits. This technique can be used to determine which new products should be pursued. The company should also determine the need for the new product and its value to the company. Need determination should focus on the type of need, its timing, the s involved, the importance of marketing variables, and the overall market structure and characteristics. In determining the product’s value to the firm, financial scheduling should be evaluated. Concept Stage In the concept stage the refined idea is tested to determine consumer acceptance without manufacturing it. One method of testing is the conversational interview in which respondents are exposed to statements that reflect attributes of the product. Features, price, and promotion should be evaluated in comparison to

major competitors to indicate deficiencies or benefits. The relative advantages of the new product versus competitors should be determined. Product Development Stage In this stage, consumer reaction is determined, often through a consumer . The can be given samples of the product and competitors’ products to determine consumer preference. Participants keep the record of their use of product and comment on its virtues and deficiencies. The of consumers is also given a sample of product and one or more competitive product simultaneously. One test product may already be on the market, whereas the other test product is new. Test Marketing Stage Although the results of product development stage provide the basis of the final marketing plan, the market test can be done to increase the certainty of successful commercialization. The last step in the evaluation process, the test marketing stage, provides actual sales results which indicate the acceptance level