This presentation is a training material for the product development for entrepreneurs and startups owner at early stage, he I explain the process of product development and to create a successful product that reaches the markets

1. Product
Development

2. New Product Development
Process
 Idea Generation and Screening
 Concept Development and Testing
 Marketing Strategy
 Business Analysis
 Product Development
 Test Marketing
 Commercialization

3. Generating the idea
 Systematic Search for New Product Ideas
 Internal sources
 Customers
 Competitors
 Distributors
 Suppliers

4. Idea validation and
screening
 Define the idea market size
 The product expected price
 The time and the costs of developing the product
 RIO and benefits

5. Developing the concept
and testing the product
Modifying
the idea
into a valid
product
Test the
product
with
customers
Take inputs
and
feedback
Create the
final
product

6. Developing the product
marketing strategy
General
strategy
• The overall
strategy
and plans
for the
product
and sales
and market
share
Long term
strategy
• Sales, profit
expected
and
marketing
mix
Short term
strategy
• Price,
distribution
and
marketing
and
promotional
budget

7. Business analysis
If No,
Eliminate
Product
Concept
If Yes, Move
to
Product
Development
Business Analysis
Review of Product Sales, Costs,
and Profits Projections to See if
They Meet Company Objectives

8. Marketing test
Standard Test Market
Full marketing campaign in a small
number of representative cities.
Controlled Test Market
A few stores that have agreed to carry
new products for a fee.
Simulated Test Market
Test in a simulated shopping
environment to a sample of consumers.

9. Product Life Cycle
Sales and
Profits ($)
Sales
Profits
Time
Product
Development
Losses/
Investments ($)
Introduction
Growth
Maturity
Decline

10. Introduction stage of the
Product Life Cycle
Sales
Low sales
Costs
High cost per customer
Profits
Negative
Create product awareness
and trial
Marketing Objectives
Product
Offer a basic product
Price
Use cost-plus
Distribution
Build selective distribution
Advertising
Build product awareness among
early adopters and dealers

11. Growth Stage
Sales
Rapidly rising sales
Costs
Average cost per customer
Profits
Rising profits
Marketing Objectives
Maximize market share
Product
Price
Offer product extensions,
service, warranty
Price to penetrate market
Distribution
Build intensive distribution
Advertising
Build awareness and interest in
the mass market

12. Maturity Stage
Sales
Peak sales
Costs
Low cost per customer
Profits
High profits
Marketing Objectives
Maximize profit while defending
market share
Product
Price
Distribution
Advertising
Diversify brand and models
Price to match or best
competitors
Build more intensive distribution
Stress brand differences and
benefits

13. Decline Stage
Sales
Declining sales
Costs
Low cost per customer
Profits
Declining profits
Marketing Objectives
Reduce expenditure and milk the
brand
Product
Phase out weak items
Price
Cut price
Distribution
Go selective: phase out
unprofitable outlets
Reduce to level needed to retain
hard-core loyal customers
Advertising