3Are you interested in learning about the steps involved in new product development?
If so, let us plunge into the sea of new product development.
But first, let’s understand what new product development (NPD) really is.
Organizations use new product development (NPD) to change or make completely new versions of products that already exist on the market.
It’s a chance to learn what customers want, whether or not it’s possible to supply the product, and how. New product development, in other words, is the process by which an idea becomes a functioning piece of software.
Statista did a survey and found that 29% of companies planned to focus their attention on making new products in 2023.
11 Steps Involved in New Product Development 2023
1. Idea Generation
Idea generation is the initial stage of the product development process. At this point, the business uses both internal and external resources to come up with a variety of new ideas.
Internal idea sources typically refer to the company’s internal R&D teams, but external sources can be competitors’ innovations, client demands, distributors’ and suppliers’ innovations, etc. As a result, the organisation concentrates on developing as many workable ideas as it can.
2. Research
With product ideas in mind, you can advance to the next stage of the new product development process, but things might get chaotic if you don’t validate your idea first.
This process, often referred to as a discovery, entails outlining your product idea and making sure that it fits the needs of the target market.
The NPD process isn’t complete without product validation to make sure you’re making something people want to buy, and that it won’t be a waste of time and money.
The design and marketing teams work together to look into your idea’s commercial potential and figure out what its main features are.
3. Concept Development
The third step in the new product development process is concept creation and testing.
At this level, good product ideas must be transformed into consumer-focused, product-specific concepts.
The concept must be developed to safeguard the product in terms of how it is seen by consumers, how it may be received on the market, and by which group of potential consumers. The plan must then be put to the test by showing it to the target market and taking their feedback into account.
4. Evaluation and Prototyping
The evaluation and prototyping phase gives your new product concept life. The design and production phases allow you to develop a genuine prototype or mockup.
It might be prudent to conduct a small-scale test release at this time. The experimental new products could also be evaluated by a group of prospective buyers.
It will be your last opportunity to fix any technical flaws or introduce in-demand features. When designing an application, for instance, you will need to conduct beta tests.
The development procedure begins with the creation of a market-ready prototype. These tests will aid the business owner in determining whether or not to pursue large-scale production.
5. Business Assessment
The product concept is subjected to rigorous business analysis or testing in order to determine predicted sales and revenue, as well as risk, and whether the product’s production is financially possible. The goals of the company are looked at, and if they are met, the product moves on to the next step.
6. Product Creation
This is the ultimate stage of new product development (NPD) that occurs when a company’s management determines a product concept to be in keeping with the company’s aims and gives the go-ahead for development.
The company’s research and development department then work on the product concept for months, and in some cases years, to create a working and functional prototype of the product concept.
7. Market Research
This is the second-to-last step in developing a new product. It involves testing the product and the marketing plan in a setting that is similar to the real market.
It shows us how the product will be marketed, advertised, made, packaged, shipped, and sold to customers, so the company can make any changes that are needed at this point.
8. Commercialization
If the test marketing goes well, the company will probably start selling the new product all over the country.
The business is heavily investing in the new product. It creates and distributes the new product in large quantities.
It makes use of mass media to advertise the new product, including television, radio, newspapers, and magazines.
9. Post-Launch Activities: Product Innovation
Customer-facing positions require skills in selling, marketing, and customer service. When a customer has a question about a product, all teams (sales, marketing, customer service, and engineering) must work together to find an answer and improve customer satisfaction.
It may be necessary to use manufacturing and engineering, in particular, to fix issues or address early adopter concerns. Depending on your sector, the development and introduction of a new product could take years.
While creating the product, it is important to be aware of the organization’s flaws.
Consider if customers have any FAQs or complaints.
How will you make your current product better or develop it so that it can be used by the next generation?
10. Examine the New Product’s Performance
Performance testing is the last step in making a new product, and we can’t skip it.
The hard work does not cease once your product is on the market. You’ll want to know how customers react to your offer, from purchase figures to satisfaction indicators.
This is just another amazing opportunity to perform fantastic customer research!
New product development research, like all forms of consumer research, may not always yield the desired results, but it will always shed new light on your product or service offering and what potential customers want from you.
The corporation must evaluate the marketing performance of the new product.
It is required to respond to the following questions:
- Is the new product receiving positive feedback from customers?
- Is it a similar new product from one of your competitors on the market?
- Is there a high level of demand, sales, or profits?
- Is the marketing team pleased with the money generated by the new product?
- Is the clients’ after-sales service satisfactory?
- Is the commission paid to middlemen adequate?
- Is the marketing manager modifying the marketing mix in response to changes in the environment?
Final Verdict
Ensuring the product is well received in the market is the primary goal of the new product development process.
We have discussed the steps that are most frequently required during the product development process. Depending on the nature of the product, these strategies are for new product development.
