The product is a component which can be tangible or intangible to serve a need or a want. There are few steps involved in the planning and development of a product which is as follows:-
- Idea Generation: – People from sales department have the upper hand to come up with a new idea which determines the taste of the customers. It may focus on offering the market in a better and effective manner.
- Screening Product Ideas: – In the first step we saw the aim was to have a maximum number of feasibilities. Now, these ideas are examined in terms of short and long-term goals point of view. Under the screening of those ideas, an attempt is made to identify those ideas which suit best to achieve goals and objectives for the company.
- Concept Testing: – Before launching the product in the market, a testing has to be made to know the attitude of the customers towards the product. For that, a questionnaire is made which includes following questions:-
- Have you understood the new product idea?
- Do you see the feasibility of the product?
- Will you purchase a new product?
- How can we further improve the product?
- Business Analysis: – This step is very important to keep in mind some of the factors to anticipate the new product for the company.
- Cost analysis: – This is to be done to check the cost per unit of a product.
- Competition: – To identify the other products in the market which could be similar to that product to know the competitors.
- Required Investment: – It should be clearer in mind as what is the budget requirement for launching that product.
- Profitability: – The profits have to be estimated by setting long and short-term goals.
- Product Development: – Before coming to this step, only theoretical work have been done. But in this step, a practical shape has given to a product idea. It includes the availability of raw materials, technique used to make the product, cost and time requirement, plant capacity etc. It also includes the other elements of marketing mix i.e. Price, Promotion, and Place.
- Test Marketing: – The main motive of doing the Test Marketing is to increase the number of sales and the number of potential customers for that particular product.
- Commercialization: – It is an important step in today’s market if you really to increase your market share. You need to commercialize your product which can be done by advertisements, online promotions, various camps, free sampling etc.
Conclusion: – Planning always helps if it’s related to business or to real life. Before launching a product into the market, a lot of thinking and the physical process has to be tested. It ensures the feasibility of a new product and increases its chances to be successful. This product may not be seen or just an idea but still it has to follow the process.