With new products entering the market every day, there’s an ever-growing need for better product development. Things like the industry, type of product, features, and other factors come into play. That’s why you need an excellent product development strategy. Show
In this article, we’ll go over what a product development strategy is and how you can develop a great one for your product. A
product development strategy is a process of bringing a new product into an existing or new market by doing continuous market research, thorough testing, and careful product concept planning. Product Development Strategy Process (NPD Process)The entire new product development process (NPD process) can be summarized into eight steps. It’s the same for startups, SMEs, and even enterprises. All development projects go through these steps, and they are crucial to the success of the product life cycle.
The first step is idea generation, where you systematically brainstorm new product ideas based on real-world problems, existing market products, and basic target audience research.
Idea screening is just filtering all your ideas and choosing a few good ones. The point is to pinpoint a certain kind of idea and then choose the best idea among them. Profitability concerns the company, and utility concerns the final user. If you’re interested in learning how to create a great product strategy, then take a look at our product management certifications where we help you do just that.
When you’ve decided on an idea, the next step is to turn the idea into a product concept. The product concept is a more comprehensive and detailed version of the idea.
After you’ve developed a complete product concept and tested it, you need a working marketing strategy. The marketing strategy is developed by keeping the current market, market share, and target audience in mind.
The marketing strategy also allows you to track certain metrics.
After the marketing strategy, it’s important to evaluate and analyze the effectiveness of the new proposed product. That includes
viewing future projections, costs, and more.
After the business analysis, the product development starts. Up until this point, your product was a rough idea, prototype, or a
potential product. However, this step ensures that it becomes a full-fledged product.
When you have a product in a place that’s accepted and ready to launch, it’s time for test marketing. This is where you test out marketing strategies based on realistic market settings. It helps marketers understand how the product is perceived, what needs to be done, and what other investments the company can make.
The final step is where you have a working product, marketing strategy, and all the relevant information you need to make it
work. At this point, you have to decide whether to launch the new product or not. Stages of a Product Development StrategyProduct management is all about adapting and modifying your current products to create, innovate, and actualize ideas. Product development works in a similar manner. 1. Modify Existing ProductsCreating a newer and better version of a successful existing product can give it a massive boost. You can add new features, work on better
marketing, and upgrade other aspects of the product. 2. Change Up Your IdeasWhile messing with the initial product idea may seem counterintuitive, it can work out in some cases. It usually happens when the market and consumers aren’t responding well to new innovations. 3. Offer Product TrialsOffering a less expensive or free version of your product as a sample is a great way to convince customers to try your product. At times, people are often skeptical about trying new things, especially when they have to pay for them. 4. Increase the Value of Your ProductEngaging customers can be pretty easy if you add additional value to your products. Every product provides a certain value based on its utility, but you can add more value by
offering more features, better quantities, customer support, discounts, promotions, and more. 5. Customization and SpecializationIf you paint your entire target
market with the same brush, chances are that some of them will eventually grow tired. Furthermore, you won’t be building brand loyalty and brand affinity. That means the moment someone else comes up with the same product with better value; your customers will switch to that. 6. Create Additional Products and Product LinesProduct development is contingent on a lot of factors, but the best way to jumpstart it is by launching new products that complement current ones. 7. Focus on Package DealsYour product might be great, but a lot of people tend to like deals. It’s a great motivator for them to make the final purchase, and that’s why making package deals for your products works. 8. Find New Market SpacesEvery product has the potential to be sold in multiple markets, and your product development strategy should take that into account. Creating a Great Product Development StrategyYour product strategy is largely contingent on your product development strategy. You need the latter for the former. It’s also how product managers,
product marketing managers, the product team, and the marketing team can do their jobs more effectively. Josh Fechter is the co-founder of Product HQ, founder of Technical Writer HQ, and founder and head of product of Squibler. You can connect with him on LinkedIn here. Which of the following product development strategies has the highest risk?Diversification. In relative terms, a diversification strategy is generally the highest risk endeavor; after all, both product development and market development are required.
What are the strategies of product development?Developing products and services. Evaluating your innovation.. Design.. New product development. New product development strategy. Generating and screening ideas for new products. New product concept development and screening. Business analysis of new products. New product prototypes and market testing. ... . Commercialisation options.. Which of the following is an example of an external product development strategy?The external product development strategies will include market research, technology research, and competitive analysis.
What is an example of product development strategy?Product development strategy examples
Product development can often be as simple as taking an existing product, modifying it slightly and selling it into your existing market. This adds value for customers, who may well buy your new product, even though they have the current version. Apple is a prime example of this.
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