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 Montana Agreement to Conduct Product Development Research is a legal contract that outlines the terms and conditions for conducting research and development activities related to product development in the state of Montana. This agreement is designed to protect the parties involved and ensure that the research is conducted in a lawful, ethical, and mutually beneficial manner. Keywords: Montana, Agreement, Conduct, Product Development, Research There are two commonly known types of Montana Agreements to Conduct Product Development Research: 1. Academic Agreement: Academic institutions, such as universities and colleges, often engage in product development research programs. The Montana Agreement to Conduct Product Development Research can be used by these institutions to formalize collaborations with other parties, such as government agencies, private organizations, or industry partners. This type of agreement ensures that all parties involved understand their roles, responsibilities, and obligations during the research process. 2. Industry Agreement: Private companies and organizations often engage in product development research for various reasons, such as improving existing products, innovating new technologies, or exploring market trends. The Montana Agreement to Conduct Product Development Research can be tailored to meet the specific needs of companies operating in Montana, providing a legal framework for collaboration with other entities, such as research institutions, government agencies, or other private-sector organizations. In both types of agreements, the content typically includes the following details: 1. Parties Involved: The agreement identifies all parties involved in the research project, clearly stating their legal names, addresses, and contact information. This ensures that all parties can be held accountable for their respective commitments. 2. Scope of Research: The agreement outlines the specific objectives, goals, and scope of the product development research project. It may include details such as the purpose of the research, expected outcomes, and methodologies to be used. 3. Roles and Responsibilities: Each party's roles and responsibilities are defined to avoid any confusion or potential disputes. This section may outline each party's contributions, access to resources, intellectual property rights, and project management responsibilities. 4. Confidentiality and Non-Disclosure: The agreement may include provisions to protect sensitive and proprietary information shared during the research project. This ensures that all parties maintain confidentiality and refrain from disclosing any confidential information to third parties without proper authorization. 5. Term and Termination: The agreement specifies the duration of the research project and the conditions under which either party may terminate the agreement. It may include provisions for early termination, dispute resolution mechanisms, and intellectual property ownership upon termination. 6. Indemnification and Liability: This section outlines the liability and indemnification responsibilities of each party involved. It may include clauses that protect parties from any legal claims arising from the research activities or the use of the research outcomes. Overall, the Montana Agreement to Conduct Product Development Research aims to establish a clear framework that governs the research collaboration, protects the rights and interests of all parties involved, and ensures the successful completion of the product development research project.
