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Lesson 6 Product Final

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33 views3 pages

Lesson 6 Product Final

Uploaded by

Dhanielle Mamucod
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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LESSON 6 PRODUCT/SERVICE DEVELOPMENT

Types of Products

There are several general categories of products. Some are new to the market (e.g., DVD players into the
home movie market), some are new to the company (e.g., Game consoles for Sony), some are completely
novel and create totally new markets (e.g., the airline industry).

The types of products can be studied under the following heads:


A. Consumer Product referred to as final goods, are products that are bought by individuals or
households for personal use.
1. Convenience Goods consumer goods which are bought frequently, quickly and with a
minimum of emotional involvement. The category includes staples, impulse goods and
emergency goods.
2. Speciality Goods goods with unique characteristics or brand identification for which enough
buyers are willing to make a special purchasing effort.
B. Industrial Product materials used in the production of other goods, while consumer goods are
finished products that are sold to and used by consumers. ... They are made up of machinery,
manufacturing plants, raw materials, and any other good or component used by industries or
firms.
1. Capital Plant and Equipment
2. Accessories
3. Materials and Components
C. Services
1. A Pure Service
2. A Major Service
3. A Tangible Good
4. A Pure Tangible Product.

What is Product Development?

Product development is the processes required to bring a product from being a concept through to
reaching the market. There are many steps required to take a product from the early stages in the
product development process, from product idea generation and market research through to research
and development, manufacturing and distribution.

Product development is the complete process of delivering a new product or improving an existing one
for customers. The customers can be external or internal within a company. And it can support many
different types of products from software to hardware, to consumer goods and services.
What is the importance of product development?
Product development comprises of all the processes, which leads the formation of a product starting
from the Initial idea to the sale of the final product. It is the key tool to keep the companies in
competition with the competitor products and to keep up with the changes and trends in the market.
Why Product Development is Important?

Product development strategies are important to ensure value for your potential customers, as well as
ensuring that there is demand and that your final products are of the highest possible quality before
your take the products to market.

The very best products also help society improve, whether through the product line itself or through the
employment and income generation the new items deliver.

On the business side of things, a new product can improve market share and create growth in a
company, providing economic sustainability through new revenue streams. Of course, it can take years
for development teams to take a product from the design process through to the point where it is ready
to market and distribute. As a result, it is important that a plan is put in place for any new or existing
products to be successfully developed.

How to Create a Product Development Plan

A product development plan should cover the journey from concept to market and engage as many
stakeholders as possible in the process to ensure their needs and concerns are addressed, while also
engaging with the market to ensure the final product will have market value.

The stages of development required for a product team can be broken down into the following areas:

1. Identify Market Need

The first stage in creating a product is determining if there is a need for it in the market. By speaking
with customers and taking on other research activities, such as test marketing and surveys, you should
be able to tell if there is interest in your product and the problems that it will solve.

2. Quantify the Opportunity

Just because there is a problem to be solved or an indication of market interest, does not necessarily
mean that a product should be created. Not every problem needs a product-based solution and there
should also be a willingness for a customer to pay the required price for the solution too.

3. Conceptualise the Product

You team can now begin to get creative and brainstorm ideas to design solutions that solve the problem
and meet market needs. This can lead to the creation of several potential solutions that will need to be
assessed.

4. Validate the Solution

Prototype design and creation can be costly, so it is worth taking time to assess and validate your
concepts. This assessment can be carried out at a conceptual level to weed out those designs that are
not worth pursuing further.

5. Build a Product Roadmap

Once the proposed concepts have been settled, it is time for the product management team to create a
roadmap for your product. This will identify which themes and goals are to be developed first to solve
the most important parts of your challenge. This step should lead to the creation of an early version of
the product that can be tested and examined by sections of the market. See below for more information
about product roadmaps.
6. Develop a Minimum Viable Product (MVP)

Following your product roadmap should lead to the creation of a product that has enough functionality
to be used by your customer base. It may not be the finished product but should be enough to test the
market and gain initial feedback.

7. Release MVP to Test Users

The MVP should be released to sections of the market to test interest, gain feedback and allow you to
begin to determine marketing messages, channels and sales team plans. This can go further than the
product itself and also encompass packaging design ideas and pricing. This important stage provides a
feedback loop between you and you customer base to provide ideas, complaints, and suggestions to
improve your final product.

8. Ongoing Assessment and Development

Using the feedback gained from the MVP release, you can now begin to work on enhancements and
changes to your product. By following the feedback from your customers you can make sure your design
aligns with their needs. This requires strategic goal setting and may involve several iterations before you
achieve a finished product that is ready for market. This step can feed back into the product roadmap
and then lead to the subsequent stages being repeated several times. Even when a finished product has
been achieved, this stage can continue in order to optimise your product further for later adaptations or
improvement.

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