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?
Illinois Agreement to Conduct Product Development Research: A Comprehensive Overview The Illinois Agreement to Conduct Product Development Research outlines the terms and conditions agreed upon between parties engaged in product development research in the state of Illinois. This legally binding agreement ensures that both parties involved are protected and expectations are clearly defined throughout the research process. It sets forth the rights, obligations, and responsibilities of the parties involved in the development of new products or product enhancements within the state boundaries. Keywords: Illinois Agreement, Conduct Product Development, Research, Terms and Conditions, Parties, Rights, Obligations, Responsibilities, New Products, Product Enhancements, State Boundaries. Different Types of Illinois Agreement to Conduct Product Development Research: 1. Confidentiality Agreement: This type of agreement is designed to protect the confidential information shared during the research process. It outlines the scope of confidential information, restrictions on disclosure, and measures to safeguard such information to maintain its confidentiality. 2. Non-Disclosure Agreement (NDA): An NDA establishes a legal framework to ensure that any proprietary or sensitive information shared during product development research remains confidential and is not disclosed to unauthorized parties. It sets the terms for the use, storage, and return of confidential information. 3. Intellectual Property (IP) Agreement: This agreement addresses ownership rights and the handling of intellectual property produced during product development research. It clarifies the ownership, licensing, and usage rights of any patents, copyrights, trademarks, or trade secrets developed as a result of the collaborative research. 4. Joint Development Agreement (JDA): A JDA specifies the roles, responsibilities, and contribution of each party involved in jointly developing a new product. It outlines the research objectives, project scope, ownership of the developed product, and the parties' rights to commercialize, manufacture, or sell the product. 5. Licensing Agreement: This agreement governs the licensing of intellectual property rights obtained through product development research. It outlines the terms and conditions under which one party grants the other party the rights to use or sublicense a particular technology or innovation for commercial purposes. 6. Research and Development Agreement (R&D Agreement): An R&D Agreement establishes the terms for conducting product development research, including the project scope, duration, milestones, payment terms, and responsibilities of each party. It provides a framework for collaborative research and the sharing of resources, data, and expertise. Through the Illinois Agreement to Conduct Product Development Research, parties involved can ensure a clear understanding of the rights, duties, and obligations, promoting collaboration and mutual benefit while protecting their respective interests. By choosing the appropriate type of agreement from the aforementioned options, businesses can define and govern their product development research processes, safeguard confidential information, and establish ownership rights over intellectual property. Disclaimer: This response is provided for informational purposes only and should not be considered as legal advice. It is advisable to consult with a legal professional familiar with the laws and regulations of the relevant jurisdiction when drafting or entering into any legal agreements.Illinois Agreement to Conduct Product Development Research: A Comprehensive Overview The Illinois Agreement to Conduct Product Development Research outlines the terms and conditions agreed upon between parties engaged in product development research in the state of Illinois. This legally binding agreement ensures that both parties involved are protected and expectations are clearly defined throughout the research process. It sets forth the rights, obligations, and responsibilities of the parties involved in the development of new products or product enhancements within the state boundaries. Keywords: Illinois Agreement, Conduct Product Development, Research, Terms and Conditions, Parties, Rights, Obligations, Responsibilities, New Products, Product Enhancements, State Boundaries. Different Types of Illinois Agreement to Conduct Product Development Research: 1. Confidentiality Agreement: This type of agreement is designed to protect the confidential information shared during the research process. It outlines the scope of confidential information, restrictions on disclosure, and measures to safeguard such information to maintain its confidentiality. 2. Non-Disclosure Agreement (NDA): An NDA establishes a legal framework to ensure that any proprietary or sensitive information shared during product development research remains confidential and is not disclosed to unauthorized parties. It sets the terms for the use, storage, and return of confidential information. 3. Intellectual Property (IP) Agreement: This agreement addresses ownership rights and the handling of intellectual property produced during product development research. It clarifies the ownership, licensing, and usage rights of any patents, copyrights, trademarks, or trade secrets developed as a result of the collaborative research. 4. Joint Development Agreement (JDA): A JDA specifies the roles, responsibilities, and contribution of each party involved in jointly developing a new product. It outlines the research objectives, project scope, ownership of the developed product, and the parties' rights to commercialize, manufacture, or sell the product. 5. Licensing Agreement: This agreement governs the licensing of intellectual property rights obtained through product development research. It outlines the terms and conditions under which one party grants the other party the rights to use or sublicense a particular technology or innovation for commercial purposes. 6. Research and Development Agreement (R&D Agreement): An R&D Agreement establishes the terms for conducting product development research, including the project scope, duration, milestones, payment terms, and responsibilities of each party. It provides a framework for collaborative research and the sharing of resources, data, and expertise. Through the Illinois Agreement to Conduct Product Development Research, parties involved can ensure a clear understanding of the rights, duties, and obligations, promoting collaboration and mutual benefit while protecting their respective interests. By choosing the appropriate type of agreement from the aforementioned options, businesses can define and govern their product development research processes, safeguard confidential information, and establish ownership rights over intellectual property. Disclaimer: This response is provided for informational purposes only and should not be considered as legal advice. It is advisable to consult with a legal professional familiar with the laws and regulations of the relevant jurisdiction when drafting or entering into any legal agreements.
