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Product Development & Planning

Product Development & Planning. After we have:. Come up with a conceptual product idea. Profiled our target market (“customer”). Performed a SWOT analysis (“competition”). It is time to move on to the 4 P’s in our marketing plan……. Let’s look at our 1 st “P”............... .

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Product Development & Planning

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  1. Product Development & Planning

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

  3. Let’s look at our 1st “P”............... “PRODUCT”

  4. “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?”

  5. “Product” Definition: • 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 Planning” Definition: • refers to the systematic decision making related to all aspects of the development and management of a firm’s products

  6. 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

  7. 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?”

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

  9. “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

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

  11. Idea Generation • 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 2. Idea Screening • 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

  12. Concept Development • 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.. • Market Strategy • The development of your marketing strategy • Determine your target market and how to use the 4 Ps to optimally sell them your product

  13. Feasibility Analysis / Study • At the end of the day, is it “doable” and worthwhile? • Often done at the same time as the product design and market strategy stages • Many questions are answered in this stage • 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?”

  14. Product Design • What the product will look like • The design will depend on what it does and what the target market want • Test Marketing • 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”

  15. 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

  16. 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

  17. 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

  18. The End !!

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