Product development process

do an internet search of the new product development process of any product of your choice, and analyze the process for developing the product. review the reasons why new products fail and make two specific recommendations to improve the high failure rate of new products.

To develop a new product, one of many proposals consists of eight steps.  The stages are idea generation, idea screening, concept development and testing, marketing strategy development, product development, test marketing and commercialization.

Explanation:

The generation of ideas for new products could lead to hundreds of them.  This process is creative and should not be restricted.  The idea screening, however, will filter all of these ideas, and select those more appropriate with the business line, capacities, resources and current technology, as well as opportunities in the market.  

A product concept is later created, as detailed as possible.  This is made in three stages:  the definition of the product itself, the definition of the value for the customer, and the definition of the product comparing it to existing products so costumers can understand it.  Then, these concepts are tested with real customers, either physically or conceptually, so an evaluation of their reaction can be obtained (perceived value).

Between the concept and the development of the product, prototypes can be created.  This is not a sequential process, and the process can be moved back and forwards between evaluation and prototyping.  Sometimes, it will not go as far as prototypes, or once as a prototype, the concept will be rejected.  If approved by customers and the organization, then the next phases begin.

A marketing strategy is developed, indicating price, segment (customers to be sold), actions to be taken in the years to come to make sure the product stays ahead of competition and imitation, expected profits and even product improvement stages.  Product feasibility is evaluated here.

These inputs are later used as part of the business analysis stage, where sales and projected profits are used to make decisions on the concept.  Basically, is an answer to the question of how much money is the product going to generate.

This is when Research and Development is involved, and an actual product is developed.  This could take from days to years, and the biggest resource consumption is made during this phase. Rough prototypes are refined, in order to get a final product, ofter evaluated by customers in the process.

Test Marketing is the following stage:  since there is an actual product, marketers now can involve customers and actually test it, getting valuable information regarding perception, expected usage, new uses, questions, and potential failures. Also, the marketing strategy is tested.  It can be decided not to sell the product.  

Commercialization is the final stage of the process, and this is when the product is actually sold in stores, and customers can use it directly.     Several marketing tactics are used such as heavy promotion and even specific locations.  

Considering this, several reasons can be identified as fails for new products:

As improvement recommendations, it should be considered: