What is a new product development

What is a new product development, and how to conduct one?

What is a new product development?

New product development means creating a new product for an existing market. It can be a physical product, like a new phone, or a service, like a new way to book travel.

New product development

Why do companies invest in new products?

Companies invest in new products for a variety of reasons. Sometimes they’re looking to expand their business into new markets or attract new customers. Other times they’re trying to stay ahead of the competition or improve their existing products.

The 8 phases of new product development

So you want to develop a new product or service?

I think everyone has had an idea for a product or service that they thought would be pretty cool, but most of us haven’t acted on it. That’s because developing a new product is not easy. It takes hard work and research to make sure the idea is feasible before you even start thinking about funding, manufacturing, or marketing.

I think everyone has had an idea for a product or service that they thought would be pretty cool, but most of us haven't acted on it. #productdevelopment Click To Tweet

To help you get started, here’s an overview of the 8-phase development process, which any new product goes through before it hits store shelves:

Phase 1: Getting product ideas

The very first phase of product development is all about generating ideas. You can do this in many ways, such as brainstorming with your team, polling customers, or doing online research. You must listen to what the market is saying and develop ideas that meet their needs.

The very first phase of product development is all about generating ideas. #productdevelopment Click To Tweet

Phase 2: Screening the product ideas.

After having a nice list of ideas, it’s time to separate the best from the bad. You can think of this as winnowing wheat from the chaff. This is where you put your product ideas through a process of elimination, asking questions such as:

– Is there an existing market for this product?

– Can we cost-effectively reach that market?

– Is the product feasible to produce?

– Is there a competitive product that already exists?

Phase 3: Concept development and testing

Now it’s time to take those promising product ideas and start developing them into a concrete concept. This is where you’ll start working out the details, such as what the product will look like, what features it will have, and how much it will cost to produce. You’ll also need to start thinking about how you’re going to sell it.

Phase 4: Business analysis

When only the good concepts are left and developed, it is now time to analyze if this product is worth the investment. This process considers not only the potential financial return on investment but also things such as how long it will take for the product to be developed and brought to market, how much support it will require during its launch, and the risks and challenges might be.

Phase 5: Product Development 

Now that we have all the cost and revenue analysis and know what we can expect, it’s time to start making this product a reality. This is the phase where you’ll actually design and build your new product.

Phase 6: Market Testing 

Alright! The product is developed. Now we need to test them to see if they work. The market testing phase helps you determine what consumers think of your new product, what might need improving, and how you can go about marketing it. You’ll want to test the product with a select group of early adopters over an extended time. Follow up with them frequently to get their feedback.

Phase 7: Product Launch

This is where all the hard work of the previous phases comes together. The product is now ready for launch, which means getting it in the hands of as many consumers as possible. You can do this through advertising, PR, and other marketing initiatives.

Phase 8: Post-launch Evaluation 

Finally, you evaluate the product’s success, look for ways to improve it, and repeat the process!

Common mistakes you need to avoid when developing a new product.

Now that you know what new product development is and the different phases of new product development, let’s take a look at some of the most common mistakes that can happen during this process.

Mistake 1: Not doing your research

This is probably the biggest mistake you can make. It’s important to do your research in all phases of product development, from generating ideas to market testing. You need to make sure there is a market for your product and that you’re offering something unique and valuable.

Mistake 2: Spending too much time on design

When developing a new product, you need to balance good design with practicality and feasibility. If it’s not manufactured or doesn’t function as expected, then those fancy designs aren’t doing anyone any favors!

Mistake 3: Not including marketing in your product launch

We mentioned before that you need to get your product in the hands of consumers, which means thinking about how you will be getting it there. Without some marketing component added to your new product development plan, you risk having nobody know about it!

Mistake 4: Not trying out your product with consumers

One of the essential aspects of market testing is getting feedback from early adopters. This allows you to make changes and improvements to your product before it’s launched.

Mistake 5: Not having a post-launch plan

Even if your product is a smashing success, you can’t just leave it at that. You need to evaluate your product and make changes where necessary continuously. Otherwise, you’ll find yourself in the same position as those companies who released a product years ago and never updated it.

Mistake 6: Underestimating the cost of development

It’s easy to underestimate the cost of developing a new product. This can lead to problems down the line, such as running out of money before the product is finished or not meeting customer demands. Make sure you have a realistic budget and timeline in place from the beginning!

By avoiding these common mistakes, you’ll be well on your way to developing a successful new product!

Conclusion:

New product development can be exciting, especially when things go right. However, when you’re in the throes of developing a new product, it’s easy to make mistakes that end up costing you time and money.

This article has outlined six common pitfalls to watch out for when developing a new product. Following these guidelines will help your new product meet its full potential!