LESSON 3:

PRODUCT DEVELOPMENT

By. jfs
Introduction

 Product development typically refers to all of the stages

involved in creating a product that starts from concepts
or ideas, until the release of the product in the market. It
is said that product development incorporates a
product’s journey starting from identifying a market
need, conceptualizing and designing the product,
building the product roadmap, developing a minimum
viable product, releasing the minimum viable product,
mass production of the product and re-inventing or
innovation of the product based on user feedback.
Introduction
 Product development is an always- evolving and fluid
process, it is continuous, and fast revolving and just as
some steps will change, depending on the nature of the
project, so will the person who manages product
development. In some organizations, especially when it
is a big organization there is a dedicated team that
researchers and test new products, it is considered a a
department receiving huge amount of budget just to
look for, or develop and innovate new product to offer
in the market.
Product Development Frameworks

 Although product development is creative and imaginative

in nature, the discipline requires a systematic approach to
guide the processes that are required to get a new product
to the market. At present there are organizations like the
Product Development and Management Association
(PDMA) and Product Development Institute (PDI) that
provides guidance about how organization are selecting the
best development framework for a new product or service
that they are planning to develop. A framework helps
structure the actual product development.
Five element of Fuzzy Front End

a.) Identification of design criteria = involves brainstorming or

exchanging of ideas for possible new products to be develop. Once an
idea has been identified as a prospective product, a more formal product
development strategy can be applied or tested.

b.) Idea analysis = this element involves a closer evaluation of the

product concept. Market research and concept studies are undertaken and
evaluated to determine if the idea is feasible and workable or within a
relevant business context to the company or to the consumer.
Five element of Fuzzy Front End
c.) Concept genesis = involves turning an identified product opportunity into a
tangible concepts. It is making the product that is being conceptualized into reality by
making all the necessary documentation, research and permit from internal or external
organization that requires it for the concept to get an approval.

d.) Prototyping = involves creating a rapid prototype for a product concept that has
been determined to have business relevance and value that is seen to give profit to the
organization and are accepted by the market. Prototyping in this front-end context
means a quick and dirty model is created, rather than the refined product model that
will be tested and marketed later on. Prototyping is a small version of the product.
Five element of Fuzzy Front End

e.) Product development = this element involves ensuring

the concept is viable after all the trial test was done and has
been determined to make business sense that is in conformity
with the mission of the organization and are aligned to the
strategic plan of the company and have business value.
The five components of design thinking are:
a) Empathize = learn more about the problem from multiple perspectives. Being with the problem itself or
experiencing the problem experience by the consumers on their daily lives.

b) Define = identify the scope and true nature of the problem by setting up parameter on what really are the
problem and how it could be tackled.

c) Ideate = brainstorming solutions to the problem. A team must be gathered to conceptualized or discuss the
favorable solution to the problem being encountered. Coming up of ideas of possible solution for trail testing.

d) Prototype = weed out unworkable or impractical solution. After the trial testing of all ideas collected from the
conceptualization stage, the team must choose for a best possible answer for the problem presented to them.

e) Test = solicit feedback from a group of target consumers if the solution selected is workable for them or if it is
acceptable. Feedback is gathered for possible consideration once the product produce is considered for
adjustment or innovation.
Eight stages of new product development
 Generation = is the continuous and systematic quest for
new product opportunities, including updating or
changing an existing product since organization should
come up with the new product to offer in the market if
they want to retain their present market position or to
increase their market share. The goal is to generate ideas
for new products or services or improvements to
products or services – that address a gap in the market
and all this ideas are coming from the experience of the
consumer that is gathered through observation,
interview, survey and even their experience of the
product presently available in the market.
Eight stages of new product development
 Idea Screening – from the list of ideas listing for
brainstorming of the team, they should take the less
attractive, infeasible and unwanted product ideas out of
the running to narrow down and focus their time in
creating and conceptualizing to the top choice ideas.
Unsuitable ideas should be determined through
objective consideration, including through early testing
and feedback with consumers therefore it should be
culled out of the system.
Eight stages of new product development
 Concept Development and Testing = this is a vital stage. The
internal, objective analysis of step two is replaced by customer
opinion in this stage since all suggestion from the costumer are
now incorporated to the ideas previously approve by the team. The
ideas, or product concept at this point, must be tested on a true
customer base for trial and final test. The testers’ reactions can
then be leveraged to adjust and further develop the concept
according to the feedback that is directly gathered during their
product testing. One example of concept development is the
concepts cars developed by car manufacturers. These prototypes
are made of clay and shown at auto shows for consumer feedback.
At this stage, design, usability, practicability is the main issue
whether the product to be developed will push through or not.
Eight stages of new product development
1) Market Strategy/business analysis = identifies the strategy of how to optimally market
and sell your product or service by looking for a feature of the product that could give the
organization an edge over existing product offered in the market. It is comprised of four
P’s, which are product, price, promotion and placement.

Product = the service or good that’s been designed to satisfy the demand of a target audience, it is
something offered in the market, may it is tangible or intangible in nature with a target of satisfying
the need of the proposed buyers.

Price = an element of marketing that directly affect the buying pattern of the consumers, pricing
decisions affect everything, profit margins, supply and demand and market strategy. The most
common type of pricing that is usually used especially when it is for the retail market is cost plus
method. Wherein total cost of the product plus percent profit margin.
Eight stages of new product development
Promotion = the goals of promotion are to present the product to the target audience
and encouraging them to purchase the product being offered. Promotion creates demand for the
product– increasing demand by doing so – and to illustrate the value of the product. Promotion
includes advertisements, public relations and marketing campaigns.

Placement = the transaction may not occur on the web, but in today’s digital economy,
the customer is generally engaged and converted on the internet. Before placement only happen in
the store or any outlet where the product was displayed. Whether the product will be provided in
brick and mortar or clicks and mortar shops or available through an Omni channel approach, the
optimal channel or channels for placement must be determined if the targeted potential customers
are to become actual customers. It is the stage that actual purchase for the product offered in the
market takes place. Placement could also be considered as intention to buy the product.
Eight stages of new product development
 Feasibility analysis/study = this stage yields information that is
critical to the products success. It entails organizing private groups
that will test a beta version, or prototype of the product then evaluate
the experience in a test panel. This feedback communicates the
target markets level of interest and desired product features, as well
as determines whether the product in development has the potential
to be profitable, attainable and viable for the company. Feasibility
analysis is evaluating the result of all process involved in the
production of the product to be offered in the market from the
financial cost, materials cost and availability, production and
acceptability of the product once offered in the market. It is a
thorough evaluation of the projections and targets if this said product
under development will give profit to the organization.
Eight stages of new product development
 Product technical design/Product development = this
integrates the results of the feasibility analysis and feedback from
beta tests from stage five into the product or incorporating the
feedback given by the test group and putting it into the final
output for the product. This stage consists of turning or making of
the prototype or concept into a workable market offering, ironing
out the technicalities of the product and alerting and organizing
the departments involved with the product launch such as
research and development, finance, marketing, production and
operation. This is the stage where marketing people should be
preparing for the final launching of the product in the market.
Eight stages of new product development
 Test Marketing or market testing = this stage differs from concept
or beta testing in that the prototype product and whole proposed
marketing plan, not individual segments are evaluated, it is the trial
sales or trial use of the product offered by the promotional team of the
organization. The goal of this stage is to validate the entire concept –
from marketing angle and message to packaging to advertising to
distribution. At this point, team evaluates the flow of the product from
the production area down to the selves in the store. Test marketing is
often performed by offering your product to a random sample of your
target market. By testing the entire package before launch the
company can critically review the reception and acceptability of the
product before a full go to market investment is made.
Eight stages of new product development

 Market entry/ commercialization = is the stage in which

the product is introduced to the target market and product
is produce on a volume or mass production. All the data
obtained throughout the previous seven stages of this
approach are used to produce market and distribute the
final product to and through the appropriate channel, such
as direct selling, bulk buyers, display on shelves or other
means of channel with the aim that the product will be at
the hand of the product users.
Three (3) Reason Why Product Development is
Important

 New Value for Customer = this is the first and most

valuable reason why we need to find ways to make
product development. It is to answer the ever changing
need of the consumers for without this product they will
have no reason why they need to spend their money.
Customers are the life blood of all organization and
catering to their needs is as always the core of all
organizations mission.
Three (3) Reason Why Product Development is Important

 Improve Society = Most of the product only

exist since they have a certain value which is
why they are sooth by the consumer but there are
some kind of product that really exceed to the
expectation of the consumer that it improves the
society beyond what the product is expected to
give.
Three (3) Reason Why Product Development is Important

Continued Existence and Growth of the Company = as the

company continuously grow so thus the product they are offering to
the market. Expansion is the evident that indeed product produce by
the organization is adopted or patronize by the consumer and also as
a result of exact targeted market. For the company to grow in size,
asset, manpower it should continuously develop product that is
needed or that answered to the needs of its valued clients.