Entrep 2: Opportunity Seeking

Mr. Melvin Agnote

Instructor
 Topic 5: New Product
Development and Product
Life Cycle

Lesson Objectives:

1. discuss what is new

product development
and its strategies; and
2. define the product life
cycle with its stages.
Entrep 2: Opportunity Seeking
New Product Development

● is the process of
bringing a new
product to the
marketplace,
renewing an
existing product
or introducing a
product in a new
market.
7 Stages in New Product Development
Idea generation
Idea generation involves
brainstorming for new
product ideas or ways to
improve an existing product.
During product discovery,
companies examine market
trends, conduct product
research, and dig deep into
users' wants and needs to
identify a problem and
propose innovative
solutions.
There are two primary sources of
ideas, internal and external
ideas.

Some of the methods you can

use are:
•Conducting market analysis
•Working with product marketing
and sales to check if your
product's value is being
positioned correctly
•Collecting user feedback with
interviews, focus groups, surveys,
and data analytics
•Running user tests to see how
people are using your product
and identify gaps and room for
improvement
Idea screening
This second step of new
product development revolves
around screening all your
generated ideas and picking
only the ones with the highest
chance of success. Deciding
which ideas to pursue and
discard depends on many
factors, including the
expected benefits to your
consumers, product
improvements most needed,
technical feasibility, or
marketing potential.
Concept development and
testing
All ideas passing the screening
stage are developed into
concepts. A product concept is
a detailed description or
blueprint of your idea. It should
indicate the target market for
your product, the features and
benefits of your solution that
may appeal to your customers,
and the proposed price for the
product. A concept should also
contain the estimated cost of
designing, developing, and
launching the product
Marketing strategy and
business analysis

Now that you’ve selected the

concept, it’s time to put
together an initial marketing
strategy to introduce the
product to the market and
analyze the value of your
solution from a business
perspective
•The marketing strategy serves
to guide the positioning,
pricing, and promotion of your
new product. Once the
marketing strategy is planned,
product management can
evaluate the business
attractiveness of the product
idea.
•The business analysis
comprises a review of the sales
forecasts, expected costs, and
profit projections. If they satisfy
the company’s objectives, the
product can move to the
product development stage.
Product development
The product development
stage consists of developing
the product concept into a
finished, marketable product.
Your product development
process and the stages you’ll
go through will depend on
your company’s preference
for development, whether
it’s agile product
development, waterfall, or
another viable alternative.
Test marketing

Test marketing involves

releasing the finished
product to a sample market
to evaluate its performance
under the predetermined
marketing strategy
Test marketing

There are two testing methods

you can employ:

•Alpha testing is software

testing used to identify bugs
before releasing the product
to the public
•Beta testing is an opportunity
for actual users to use the
product and give their
feedback about it
Product launch

At this point, you’re

ready to introduce your new
product to the market. Ensure
your product, marketing,
sales, and customer support
teams are in place to
guarantee a successful
launch and monitor its
performance.
 Product launch
To better understand how to
prepare a go-to-market
strategy, we spoke to Ganna
Kryklii, Senior Product
Marketing Manager
at Typeform. Here are some
essential elements to
consider.

❑ Customers
❑ Value proposition
❑ Messaging
❑ channels
 'New products' can be:
● products that your business
has never made or sold
before but have been taken
to market by others

● product innovations created

and brought to the market
for the first time; may be
completely original products,
or existing products that you
have modified and improved.

https://www.business.qld.gov.au/running-business/growing-
business/becoming-innovative/developing-products/new-products
 New Product
Development Strategy
There are several
important steps you will
need to plan into your
NPD strategy.

1. Define your product.

2. Identify market needs.
3. Establish time frames.
4. Identify key issues and
approaches.
https://www.business.qld.gov.au/running-business/growing-
business/becoming-innovative/developing-products/new-products
 Product Life Cycle

● is refers to the time

period or process
almost every product
goes through from
when it is first
introduced into the
market until it is
removed from the
market.
https://educationleaves.com/what-is-a-product-life-
cycle/?fbclid=IwAR0LIX1B6mTKI0V8lV67z7MBxKvqV1YWp4T4KETXnBN
QhEYEqlmnXQrw568
 4 Stages of
Product Life Cycle
There are four stages that
are generally accepted in
a product life cycle-

1. Introduction stage,
2. Growth stage,
3. Maturity stage,
4. Decline stage.
https://educationleaves.com/what-is-a-product-life-
cycle/?fbclid=IwAR0LIX1B6mTKI0V8lV67z7MBxKvqV1YWp4T4KETXnBN
QhEYEqlmnXQrw568
https://educationleaves.com/what-is-a-product-life-
cycle/?fbclid=IwAR0LIX1B6mTKI0V8lV67z7MBxKvqV1YWp4T4KETXnBN
QhEYEqlmnXQrw568
1. INTRODUCTION STAGE Common strategies to try:
● establish a clear brand
The product is identity
being launched ● connect with the right
partners to promote your
into the market, product
after successfully ● set up consumer tests, or
developed. provide samples or trials to
key target markets
● price the product or service
as high as you believe you
can sell it, and to reflect the
quality level you are
providing
https://educationleaves.com/what-is-a-product-life-
cycle/?fbclid=IwAR0LIX1B6mTKI0V8lV67z7MBxKvqV1YWp4T4KETXnBN
QhEYEqlmnXQrw568
2. GROWTH STAGE Common strategies to
try:
● improving product quality
After successfully ● adding new product features
or support services to grow
introducing the new
your market share
product , a ● enter new markets segments
significant increase ● keep pricing as high as is
reasonable to keep demand
in consumer and profits high
demand occurs and ● increase distribution channels
sales started to take to cope with growing demand
● shifting marketing messages
off. from product awareness to
product preference
https://educationleaves.com/what-is-a-product-life- ● skimming product prices if
cycle/?fbclid=IwAR0LIX1B6mTKI0V8lV67z7MBxKvqV1YWp4T4KETXnBN
QhEYEqlmnXQrw568 your profits are too low.
3. MATURITY STAGE Common strategies to
try:
● market modification -
The most profitable this includes entering
stage, as the new market segments,
redefining target
production volume markets, winning over
increasing, the competitor's
costs of producing customers, converting
non-users
and marketing
decline. Sales tend ● product modification -
to slow. for example, adjusting
or improving your
https://educationleaves.com/what-is-a-product-life- product's features
cycle/?fbclid=IwAR0LIX1B6mTKI0V8lV67z7MBxKvqV1YWp4T4KETXnBN
QhEYEqlmnXQrw568
4. DECLINE STAGE Common strategies to
try:● reduce your promotional
expenditure
In this stage, product
● reduce the number of
sales drop rapidly distribution outlets
and consumer ● implement price cuts to
behaviour changes as get the customers to buy
there is decreasing the product
● find another use for the
demand for the
product
product. It will be ● maintain the product
retired out of the and wait for competitors
market. to withdraw from the
market first
https://educationleaves.com/what-is-a-product-life-
cycle/?fbclid=IwAR0LIX1B6mTKI0V8lV67z7MBxKvqV1YWp4T4KETXnBN
QhEYEqlmnXQrw568
 Sales drop rapidly.
More customers, Product phase out.
increase demand 3
and sales.

2 4
Product launching. Most profitable
stage, also sales
tend to slow.
1

https://educationleaves.com/what-is-a-product-life-
cycle/?fbclid=IwAR0LIX1B6mTKI0V8lV67z7MBxKvqV1YWp4T4KETXnBN
QhEYEqlmnXQrw568
 Example of Product Life Cycle

Typewriter
 Example of Product Life Cycle

VCR
 Example of Product Life Cycle

VCR Floppy Disk / Diskette

 ● The product life cycle
better allows marketers
and business developers
to better understand
ADVANTAGES OF USING
how each product or
THE PRODUCT LIFE brand sits with a
CYCLE company's portfolio. This
enables the company to
internally shift resources
to specific products
based on those products'
positioning within the
product life cycle
https://educationleaves.com/what-is-a-product-life-
cycle/?fbclid=IwAR0LIX1B6mTKI0V8lV67z7MBxKvqV1YWp4T4KETXnBN
QhEYEqlmnXQrw568
 ● Despite its utility for
planning and analysis,
the product life cycle
doesn't pertain to every
industry and doesn't
LIMITATIONS OF USING work consistently across
PRODUCT LIFE CYCLE all products. Consider
popular beverage lines
whose primary products
have been in the
maturity stage for
decades, while spin-offs
or variations of these
drinks from the same
https://educationleaves.com/what-is-a-product-life-
cycle/?fbclid=IwAR0LIX1B6mTKI0V8lV67z7MBxKvqV1YWp4T4KETXnBN
company have failed.
QhEYEqlmnXQrw568
Thank
you!