The simple basics of a product development cycle
Developing a new product or service involves a set of processes or a cycle that starts with conceptualizing ideas and ends by introducing the product or service to the market. Depending on the type of business, the stages involved may overlap.
Regardless, the ingredients are essentially the same and are key to ensuring the marketability of the product or service. Product development may be done internally by the key departments and personnel of the organization. However, the company can also choose to tap the services of external providers like Boldare new development company for their expertise.
In this article, we will discuss the basics of the product development cycle. These dictate how accurately and quickly you can promote your product or service.
Step #1: Idea Generation
The first step in the cycle involves creating a roadmap for your product or service. Your team of experts brainstorms for ideas and analyzes each one’s strengths and weaknesses. They also consider the opportunities and threats that may accompany them. More specifically, the discussion focuses on the existing market trends, ROIs and the cost of distribution. This stage generates lots of innovative ideas. Each one undergoes careful scrutiny according to their risk levels.
Step #2: Screening
As the term suggests, step 2 involves filtering out ideas that do not make the cut. This is where the team decides whether to continue or drop a project idea discussed in step 1. In the end, only the one with the strongest market potential, ROI, and the most realistic production cost remains.
Step #3: Concept Testing
Once the generated concept is firmer, the team goes ahead to test the concept according to certain specifications such as product design, feasibility, and market potential. Feedback from potential customers should reflect their understanding of the product or service as well as their relative interest in it.
Step #4: Strategic Business Analysis
In step 4, your company will have completely reviewed and/or modified the product or service internally or externally. After which, your team ensures its connection to your business’ strategic plans by identifying the marketing strategy, demand, and expected revenue.
Step #5: Product Development
This stage is where the company makes a prototype or beta version of the conceptualized product or service. The manufacturing methods and product packaging are part of the step. Once the design is complete, your team gets ready for consumer testing.
Step #6: Marketability Testing
When everything is set, the team initiates a consumer test. The consumer, manufacturer and other support organizations will then generate feedback that helps the company deal with possible issues. Depending on the result, your team may decide to change some processes or solve any technical issues with the product or service.
Step #7: Commercialization
In step 7, your team finalizes every minute detail to prepare the product for launching. The team polishes the marketing plans and pricing and communicates these to the distribution and sales teams. An essential element to identify in this step is the technical support team who will handle customers’ needs.
Step #8: Product or Service Launching
The final step involves finally introducing the product or service to the target market. To ensure a smooth introduction, a detailed launch plan should be created. Aside from the complete product, a marketing timeline and a trained sales team should also be put in place.
The product development cycle greatly helps companies monitor their resources, schedule, and costs. A new development company realizes that in order to be productive, goals should be clearly defined and concepts should be tested. But as business outcomes are never fixed, contingencies should also be clearly outlined.