Product development can be explained as the process through which the company develops new product or goods for the end customer or the potential consumer of the company.
The following is the way new product development is used by marketers for successful product launch
- Helps creating customer base: The new product development process helps the marketer in understanding and creating a customer base to whom the company will be targeting the product that has been developed by the company. This will help the company in successful product launch.
- Helps in targeting various groups: The company with various target audience tries to capture the maximum target audience and maximum customers. The marketer with a better product development will be able to understand the target audience and will accordingly and will lead to successful product launch.
- Better positioning: The process of new product development will help the marketer to understand the level of product and target market for the company. Thus this will ease the marketer’s work of positioning the product and will lead to a successful product launch.
The following are the steps to will taken before launching a product or service in the market
- Meeting the user needs: The company needs to understand the needs of the consumer or the end customers of the product or service that the company will be selling to the customer. The user needs to meet and should understand the needs of the end consumer.
- Know your competition: The company then needs to analyse the competition available in the market and if no competition is available the organization needs to check for the potential competitors that may arise in the upcoming times. The company needs to understand deeply about the competition.
- Prototype and test it: The company then needs to create a prototype and test it in the market. This will save the company not invest huge amount in product at a huge scale and this will also help in understanding the defects of the products that the products carries.
- Reconfigure: After testing the product the company needs to change and reconfigure the product as per the results of the testing done in the previous step. This is one of the most important step as this may lead to success or failure of the product.
- Run the numbers: Run the numbers means fixing the prices of the products that has been developed. The breakeven point, the cost of making and profit margin are decided at this stage. This will help in understanding the finances and the cost of company.
- Build a supply chain: The development of demand is not enough but the development of the supply chain for supply of goods is also important. The supply chain should be such that the maximum number of products reaches the customer in a very less time. The company needs to create such supply chain.
- Network and share: The company after build the supply chain should create a network and should share their products through various social media and other platforms to the potential consumer and the existing customers of the company.
- Review the product: After launch of the product the company will review the launch of the product. This will provide the information whether the product was successful or not.