Development
Development involves setting product specifications as well as testing the product with intended customer groups to gauge their reaction.
LEARNING OBJECTIVES
Describe the steps involved in the technical and marketing development stages of new product development
KEY TAKEAWAYS
Key Points
- Technical development involves creating a prototype to develop exact product specifications.
- The technical development stage also involves getting a good idea for the different methods and costs of making the product in a factory setting.
- The concept test is usually the first stage for the marketing department during the development stage. In addition to the product, elements such as packaging and labeling can also be tested with potential consumers.
Key Terms
- development: the complete process of bringing a new product to market
- development stage: The stage where prototypes are created, and questions of production and marketing are asked.
Development
Once a potential product has passed the screening and business analysis stages, it goes onto the technical and marketing development stage. This stage includes identifying the target market and the decision maker in the purchasing process, determining what features must be incorporated into the product and the most cost-effective way to produce it, and establishing what the actual cost of production will be.
Technical Development
Technical development involves two steps. The first is the applied laboratory research required to develop exact product specifications. The goal of this research is to construct a prototype model of the product that can be subjected to further study. Once the prototype has been created, manufacturing methods research can be undertaken to plan the best way of making the product in commercial quantities under normal manufacturing conditions. This is an extremely important step, because there is a significant distinction between what an engineer can assemble in a laboratory and what a worker can produce in a factory.
Prototype: A company develops a prototype in order to conduct further testing on a potential product.
Testing Process
While the laboratory technicians are working on the prototype, the marketing department is responsible for testing the new product with its intended consumers and developing the other elements of the marketing mix.
Concept Test
The testing process usually begins with the concept test. The product concept is a synthesis or a description of a product idea that reflects the core element of the proposed product. For example, a consumer focus group might be assembled and the interview session might begin with the question: “How about something that would do this?”
Consumer Testing
The second aspect of market development involves consumer testing of the product idea. This activity usually follows the construction of the prototype or limited production models. Various kinds of consumer preference can be conducted. The product itself can be exposed to consumer taste or use tests. Packaging, labeling, and other elements in the mix can be similarly studied.