Css Lec Lesson2
Css Lec Lesson2
Css Lec Lesson2
Product Development
When we talk of product development, we are referring to a process of making a new product to be sold by a
business or enterprise to its customers. Product development may involve modification of an existing product
or its presentation, or formulation of an entirely new product that satisfies a newly-defined customers needs,
wants and/or a market place.
The term development in this module refers collectively to the entire process of identifying a market
opportunity, creating a product to appeal to the identified market, and testing, modifying, and refining the
product until it becomes ready for production.
Concepts of Developing a Product
Concept development is a critical phase in the development of a product. In this stage, the needs of the target
market are identified, and competitive products are reviewed before the product specifications are defined. The
product concept is selected along with an economic analysis to come up with an outline of how a product is
being developed. Figure 3 shows the stages of concept development of a product.
2. Establish target specifications: Based on customers' needs and reviews of competitive products, you can
now establish target specifications of the prospective new product and/or services. A target specification is
essentially a wish-list.
4. Generate product concepts: After having gone through with the previous processes, you may now develop
a number of product
concepts to illustrate the types of products or services that are technically feasible and will best meet the
requirements of the target specifications.
5. Select a product concept: Through the process of evaluation between attributes, a final concept is
selected. After the final selection, additional market research can be applied to obtain feedback from certain
key customers.
6. Refine product specifications: In this stage, product or services specifications are refined on the basis of
input from the foregoing activities. Final specifications are the result of extensive study, expected service life,
projected selling price among others are being considered in this stage.
7. Perform economic analysis: Throughout the process of product development, it is very important to always
review and estimate the economic implications regarding development expenses, manufacturing costs, and
selling price of the product or services to be offered or provided.
8. Plan the remaining development project: In this final stage of concept development, you can prepare a
detailed development plan which includes list of activities, necessary resources and expenses, and
development schedule with milestones for tracking progress.
Finding Value
People buy for a reason. There should be something in your product or service that would give consumers a
good reason to go back and buy more. There must be something that will make you the best option for target
customers; otherwise, they have no reason to buy what you are selling. This implies further, that you offer
something to your customers that will make them value your product or service.
The value you incorporate in your product is called value proposition. Value proposition is a believable
collection of the most persuasive reasons why people should notice you and take the action youre asking for.
It is what gets people moving, what makes people spend for your product or service.
Innovation
Innovation is the introduction of something new in your product or service. This may be a new idea, a new
method, or a new device. If you want to increase your sales and profit, you must innovate. Some of the
possible innovations for your products are change of packaging, improvement of taste, color, size, shape, and
perhaps price. Some of the possible innovations in providing services are application of new and improved
methods, additional featured services, and possibly freebies.