Unit 3

8 STAGES OF PRODUCT DEVELOPMENT

Stage 1: IDEA GENERATION

Invention or innovation as a result of a gap in the current market. A idea to produce a product or service not currently available.

Stage 2: IDEA SCREENING

Marketers need to test consumer reaction to their idea before they continue. They need to throw the idea around and see what people think

Stage 3: CONCEPT DEVELOPMENT

If feedback from consumers and your business associates is positive, a PROTOTYPE or sample is created. This stage is where they see if the product works.

Stage 4: MARKET STRATEGY

Development of marketing strategy. This stage is where you determine your target market. Also use 4 P`s to optimally sell products.

Stage 5: FEASIBILITY ANALYSIS/ STUDY

Done often at same time as product design and market strategy stages. Questions like what materials/ labor is required, price of production, distribution channels, cost of promotions are answered at this stage. The big question that gets answered is Can we make and sell this product and make money doing it.

Stage 6: PRODUCT DESIGN

What the product will look like. Design depends on what is does and what the target market wants.

Stage 7: 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.

Stage 8: MARKET ENTRY

The product is officially in the market and being sold to all. The PRODUCT LIFE CYCLE begins and its life will be determined by the consumer market, competition and further product advances.