Product Development in Marketing

Product Development in Marketing

What is product development in marketing? What are the steps in this kind of process? And why is this important? Let us know more about this below.

Product Development in Marketing

When it comes to marketing, companies are constantly in the process of developing new products and services to meet the needs of their current and potential customers. New products are often expected to generate more revenue for their respective companies. But to do so, a company has to develop a product that is innovative and unique, as well as appealing to customers.

The process is similar to the development process in any other business entity. It involves completing a series of tasks that lead up to the final product. This process can be divided into five stages:

  • strategic planning, 
  • market research, 
  • concept development, 
  • product testing, and 
  • commercialization. 

These are explained below.

Product Development Stages in Marketing

Strategic Planning

A company should have a clear understanding of its market position and the competition surrounding it before it decides to develop a new product or service. By this stage, a company will already have an established reputation in the market with its existing products or services. Therefore, it will define its market niche with the new product in mind. 

Then, a company should also determine if there is a need for this kind of product or service in the market. And how much demand there is for it among its target audience.

Market Research

The next thing that a company should do is conduct some market research. By this time, the company should have already identified its target audience for the new product. Now, it should find out what the current market trends are and how the new product fits into these trends.  

Further, it should also conduct some research on what other competitors are doing about their products or services worldwide.

Concept Development

After conducting some market research, a company will have more information about the latest developments in its particular industry sector. As well as other important information. Such as whether there are gaps that need filling in terms of products or services offered by other companies.  

Now is when a company can try to create an innovative concept that will suit all these criteria and needs. For this concept to be accepted by consumers, however, it must be presented properly.

Product Testing

Next will be testing of the new product concept. This is also called product testing. Product testing involves conducting some tests with the target audience first. This will show whether or not they are receptive to the new product concept that is being offered. This is an important stage in the whole process since it will determine whether the product will eventually be successful in the market or not. 

Product Commercialization

Finally, if the product testing phase showed that there is a need for this kind of product, then the company can now proceed to commercialization. In this stage, a company will get all of its necessary permits and licenses for the production and sales of the new product. It will also start marketing and advertising the new product to consumers.

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