Transcript 5.3 Notes - FPSS

The Stages of Product
Development
Section 5.3
Stages of Product Development
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Marketers use inventions and innovations to create new
products and make a profit.
Sometimes the marketers and inventor are the same
person – this is NOT common.


They tend to sell or license their idea to a business
Innovators are MUCH more likely to be marketers as
well.

Make current ideas/products better based on:
•
•
•
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Competition
Changes in Culture/Society
Technology
Changing Demographics

Baby Boom Era
Stages of Product Development,
Cont’d.
 Idea
Generation
 Idea Screening
 Concept Development
 Market Strategy
 Feasibility Study
 Product Design
 Test Marketing
 Market Entry
Idea Generation
 Research
often indicates the need for a
new product, or modifications to existing
products

Marketers will get together and brainstorm
options/ideas for the creation/modification to
the product.
Idea Screening
 Once
companies have brainstormed their
ideas, they need to test both consumer
reaction to the new idea as well as the
competitive market for the new idea to see
if it will be viable.

EX: 1999 IncrEdibles Breakfast Sandwiches
Concept Development
 If
an idea is perceived as a good idea
(both in the eyes of the consumer, and
based on the current competitive market),
a company will develop a working
PROTYPE

A small sample of what the product may
actually look like and how it will operate.
• The prototype is tested to see whether it will work
and if consumers will like it.
Market Strategy
 Using
information already gathered (or
from new research conducted) the
marketing department would outline and
study their primary and secondary market.


Primary = Heavy USERS
Secondary = Occasional Users
 Once
the primary and secondary market is
established, a strategy to reach them is
prepared
Feasibility Study
 A feasibility
study is conducted (often at
the same time as the market strategy)
 The product/business must be one that the
business can make & sell.
Product Design
 Takes
into account the
preferences/feedback of the primary
market (as well as secondary market).
 Also includes:



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Package
Warranty/Guarantees
Instruction Manual(s)
Service Information
Test Marketing
 To
test the viability of a new product/idea it
must be tested in a sample market prior to
market entry.

Product is sold in a small area(s) that would
be similar to the overall market.
Market Entry
 At





this stage the product enter the PLC:
Introduction
Growth
Maturity
Decline
Decision Point