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 Guam Agreement to Conduct Product Development Research is a comprehensive contractual arrangement designed to facilitate collaborative product development research activities between parties. This agreement lays down the framework, guidelines, and obligations governing the research project in question. Through this agreement, parties aim to combine their expertise, resources, and capabilities to accelerate product development, enhance innovation, and drive mutual growth. Keywords: Guam Agreement, Conduct, Product Development Research, collaborative, research activities, framework, guidelines, obligations, expertise, resources, capabilities, accelerate, enhance, innovation, mutual growth. Different Types of Guam Agreements to Conduct Product Development Research: 1. Government-Government Agreement: This type of Guam Agreement involves research collaboration between government entities of different countries. It aims to foster technological advancements and build a competitive advantage by pooling research resources, sharing knowledge, and promoting joint product development initiatives. 2. Government-Private Sector Agreement: This agreement type involves collaboration between a government entity and a private sector organization. The government provides financial support, incentives, or regulatory assistance, while the private sector contributes expertise, technology, and resources, to conduct research and develop innovative products for societal benefit. 3. Private Sector-Private Sector Agreement: This type of Guam Agreement involves a partnership between two or more private sector entities. Companies combine their research capabilities, intellectual property, market insights, and technologies to undertake joint product development research activities. Such agreements are commonly seen in industries like pharmaceuticals, electronics, and automotive, where complex and expensive research and development processes require collaboration to succeed. 4. University-Industry Agreement: This type of Guam Agreement involves collaboration between academic institutions (universities, research centers, etc.) and industrial or commercial organizations. The primary objective is to leverage academic expertise, facilities, and resources alongside industry experience, funds, and market insights. Joint research projects help bridge the gap between theoretical knowledge and market applicability, fostering innovation and driving economic growth. 5. Cross-border Agreement: This agreement type involves parties from different countries collaborating on product development research. It often entails addressing regulatory, legal, and logistical challenges associated with international partnerships. Cross-border agreements facilitate global innovation and provide access to diverse talent pools, markets, research facilities, and funding opportunities. It is important to note that the specific terms and conditions of any Guam Agreement to Conduct Product Development Research will vary depending on the nature of the collaboration, industry, and objectives of the parties involved.
