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 Washington Agreement to Conduct Product Development Research is an international agreement aimed at promoting collaborative efforts in product development research between countries. This agreement fosters information sharing, joint research projects, and knowledge exchange to accelerate advancements in various industries. One type of Washington Agreement to Conduct Product Development Research is the Washington Agreement for Technology Transfer. This specific type focuses on transferring technological know-how, intellectual property rights, and technical expertise from developed countries to developing nations. It aims to enhance the technological capabilities and industrial competitiveness of participating countries through collaborative research and development initiatives. Another type of Washington Agreement is the Washington Agreement for Innovation and Entrepreneurship. This agreement emphasizes fostering innovation, supporting entrepreneurial activities, and encouraging the commercialization of research outcomes. Participating countries collaborate to identify innovative ideas, exchange best practices, and create an enabling environment for startups and small businesses to thrive. Additionally, the Washington Agreement to Conduct Product Development Research encompasses the Washington Agreement for Sustainable Development. This type of agreement promotes research and development initiatives that contribute to sustainable practices across various sectors. It focuses on developing environmentally friendly technologies, renewable energy solutions, and sustainable manufacturing processes to tackle global challenges and mitigate the impact of climate change. Overall, the Washington Agreement to Conduct Product Development Research serves as a platform for facilitating international collaboration in the field of product development. It encourages the sharing of resources, expertise, and knowledge among participating countries, fostering innovation, sustainable development, and technological advancements across various industries.The Washington Agreement to Conduct Product Development Research is an international agreement aimed at promoting collaborative efforts in product development research between countries. This agreement fosters information sharing, joint research projects, and knowledge exchange to accelerate advancements in various industries. One type of Washington Agreement to Conduct Product Development Research is the Washington Agreement for Technology Transfer. This specific type focuses on transferring technological know-how, intellectual property rights, and technical expertise from developed countries to developing nations. It aims to enhance the technological capabilities and industrial competitiveness of participating countries through collaborative research and development initiatives. Another type of Washington Agreement is the Washington Agreement for Innovation and Entrepreneurship. This agreement emphasizes fostering innovation, supporting entrepreneurial activities, and encouraging the commercialization of research outcomes. Participating countries collaborate to identify innovative ideas, exchange best practices, and create an enabling environment for startups and small businesses to thrive. Additionally, the Washington Agreement to Conduct Product Development Research encompasses the Washington Agreement for Sustainable Development. This type of agreement promotes research and development initiatives that contribute to sustainable practices across various sectors. It focuses on developing environmentally friendly technologies, renewable energy solutions, and sustainable manufacturing processes to tackle global challenges and mitigate the impact of climate change. Overall, the Washington Agreement to Conduct Product Development Research serves as a platform for facilitating international collaboration in the field of product development. It encourages the sharing of resources, expertise, and knowledge among participating countries, fostering innovation, sustainable development, and technological advancements across various industries.
