In a changing market, staying competitive often requires the development of new products. As consumer tastes and needs change, products must also change. Developing new products, however, is a risky and costly venture. Market research is an essential tool to help boost the chances for success.
The new product development process has at least six stages.
1. Opportunity identification. To start, you should seek holes in the market that might be opportunities. At this stage, the following information gathering techniques are useful: focus groups, consumer surveys, analysis of customer suggestions and complaints, brainstorming, industry research (size of market, consumption patterns), and analysis of competitors products.
2. Concept screening. Next, you will move from generating ideas to testing ideas. In concept screening, you describe the product idea to potential customers and ask, would you buy this product? If consumers do not like the idea of your product, the physical product will probably not do well either. Concept screening allows for the evaluation of winners and losers early in product development before substantial resources are committed to a products development. At this stage, focus groups and consumer surveys are useful research methods.
3. Marketing strategy development. Next, you will set a plan for your marketing mix (the four Ps): A. Product. Define your product in terms of varieties, quality, design, features, brand, packaging, sizes, service, and warranties. B. Price. Develop a pricing strategy. Consider how you will use list price, discounts, allowances, payment periods, and credit terms. C. Place. How will your products get to your customers? Which channels will you use (retail, wholesale, foodservice)? Consider the best locations to reach your target market. Also consider transportation, inventory, and storage. D. Promotion. How will you use the following: sales promotion (coupons, allowances, discounts), advertising, salespeople, public relations?
4. Product development. At this stage, using the information you have collected and the decisions you have made about the 4 Ps, you will design and create the physical product, as well as its packaging, name, logo, and advertising. Research at this stage usually involves repeated cycles of product improvement and testing. Product testing includes both physical performance (e.g., shelf stability) and consumer reactions.
5. Market testing. This stage is a last check on the product before it enters the market. At this point, product performance tests are complete. Market testing aims to evaluate advertising, awareness, and usage (AAU) of the product in test markets. The techniques used include simulated store testing and controlled test marketing. Some marketing research firms offer AAU studies.
6. Product introduction. As you introduce the product to the market, you should test the distribution of the product. Is the product getting on the shelves? Is it getting a favorable presentation on the shelves?
The District of Columbia Agreement to Conduct Product Development Research is a legal agreement that enables businesses and organizations in the District of Columbia (DC) to collaboratively engage in product development research activities. This agreement establishes the terms and conditions under which parties can work together to develop innovative products, foster technological advancements, and enhance the overall competitiveness of the DC region. The District of Columbia Agreement to Conduct Product Development Research can be further categorized into various types, each catering to specific research objectives and domains. Some key types of agreements are: 1. District of Columbia Agreement for Scientific Research: This type of agreement focuses on conducting scientific research to explore new technologies, create prototypes, or improve existing products. It facilitates collaboration between research institutions, universities, and businesses to advance scientific understanding and develop new applications or solutions. 2. District of Columbia Agreement for Technological Innovation: This agreement emphasizes technological innovation and aims to leverage cutting-edge technologies for product development. It involves diverse stakeholders such as technology companies, startups, and government agencies coming together to innovate, create disruptive technologies, and contribute to economic growth in the region. 3. District of Columbia Agreement for Sustainable Product Development: This type of agreement highlights the importance of sustainability and environmental stewardship in product development. It encourages the use of eco-friendly materials, energy-efficient designs, and sustainable manufacturing practices. Parties involved in this agreement include companies, research organizations, and government entities committed to creating environmentally responsible products. 4. District of Columbia Agreement for Medical Product Development: Specifically tailored for the healthcare sector, this agreement focuses on developing medical products, devices, and treatments. It involves collaboration between hospitals, clinics, pharmaceutical companies, research institutions, and regulatory bodies to accelerate the discovery and commercialization of medical advancements. 5. District of Columbia Agreement for Consumer Product Development: This agreement revolves around the development of consumer-oriented products, such as gadgets, appliances, or lifestyle products. It brings together consumer goods companies, design firms, market research agencies, and other relevant stakeholders to design, test, and introduce innovative products that cater to evolving consumer demands. The District of Columbia Agreement to Conduct Product Development Research is designed to encourage collaboration, foster innovation, and drive economic growth within the region. By providing a legal framework for product research activities, it enables stakeholders to leverage their collective expertise and resources, thereby boosting the development and commercial success of new products.The District of Columbia Agreement to Conduct Product Development Research is a legal agreement that enables businesses and organizations in the District of Columbia (DC) to collaboratively engage in product development research activities. This agreement establishes the terms and conditions under which parties can work together to develop innovative products, foster technological advancements, and enhance the overall competitiveness of the DC region. The District of Columbia Agreement to Conduct Product Development Research can be further categorized into various types, each catering to specific research objectives and domains. Some key types of agreements are: 1. District of Columbia Agreement for Scientific Research: This type of agreement focuses on conducting scientific research to explore new technologies, create prototypes, or improve existing products. It facilitates collaboration between research institutions, universities, and businesses to advance scientific understanding and develop new applications or solutions. 2. District of Columbia Agreement for Technological Innovation: This agreement emphasizes technological innovation and aims to leverage cutting-edge technologies for product development. It involves diverse stakeholders such as technology companies, startups, and government agencies coming together to innovate, create disruptive technologies, and contribute to economic growth in the region. 3. District of Columbia Agreement for Sustainable Product Development: This type of agreement highlights the importance of sustainability and environmental stewardship in product development. It encourages the use of eco-friendly materials, energy-efficient designs, and sustainable manufacturing practices. Parties involved in this agreement include companies, research organizations, and government entities committed to creating environmentally responsible products. 4. District of Columbia Agreement for Medical Product Development: Specifically tailored for the healthcare sector, this agreement focuses on developing medical products, devices, and treatments. It involves collaboration between hospitals, clinics, pharmaceutical companies, research institutions, and regulatory bodies to accelerate the discovery and commercialization of medical advancements. 5. District of Columbia Agreement for Consumer Product Development: This agreement revolves around the development of consumer-oriented products, such as gadgets, appliances, or lifestyle products. It brings together consumer goods companies, design firms, market research agencies, and other relevant stakeholders to design, test, and introduce innovative products that cater to evolving consumer demands. The District of Columbia Agreement to Conduct Product Development Research is designed to encourage collaboration, foster innovation, and drive economic growth within the region. By providing a legal framework for product research activities, it enables stakeholders to leverage their collective expertise and resources, thereby boosting the development and commercial success of new products.
