PDD Unit I
PDD Unit I
The economic success of most firms depends on their ability to identify the needs of
customers and to quickly create products that meet these needs and can be produced at low
cost. Achieving these goals is not solely a marketing problem, nor is it solely a design
problem or a manufacturing problem; it is a product development problem involving all of
these functions.
The goal of this book is to present in a clear and detailed way a set of product
development methods aimed at bringing together the marketing, design, and manufacturing
functions of the enterprise.
Meaning:
A product is something sold by an enterprise to its customers.
Product development is the set of activities beginning with the perception of a
market opportunity and ending in the production, sale, and delivery of a product.
Product quality: How good is the product resulting from the development effort?
Does it satisfy customer needs? Is it robust and reliable? Product quality is ultimately
reflected in market share and the price that customers are willing to pay.
OPEN ELECTIVE: PRODUCT DEVELOPMENT AND DESIGN
Product cost: What is the manufacturing cost of the product? This cost includes
spending on capital equipment and tooling as well as the incremental cost of
producing each unit of the product. Product cost determines how much profit accrues
to the firm for a particular sales volume and a particular sales price.
Development time: How quickly did the team complete the product development
effort? Development time determines how responsive the firm can be to competitive
forces and to technological developments, as well as how quickly the firm receives
the economic returns from the team’s efforts.
Development cost: How much did the firm have to spend to develop the product?
Development cost is usually a significant fraction of the investment required to
achieve the profits.
Development capability: Are the team and the firm better able to develop future
products as a result of their experience with a product development project?
Development capability is an asset the firm can use to develop products more
effectively and economically in the future.
Marketing: The marketing function mediates the interactions between the firm and
its customers. Marketing often facilitates the identification of product opportunities,
the definition of market segments, and the identification of customer needs.
Marketing also typically arranges for communication between the firm and its
customers, sets tar-get prices, and oversees the launch and promotion of the product.
Design: The design function plays the lead role in defining the physical form of the
product to best meet customer needs. In this context, the design function includes
engineering design (mechanical, electrical, software, etc.) and industrial design
(aesthetics, ergonomics, user interfaces).
Manufacturing: The manufacturing function is primarily responsible for designing,
operating, and/or coordinating the production system in order to produce the product.
Broadly defined, the manufacturing function also often includes purchasing,
distribution, and installation. This collection of activities is sometimes called the
supply chain.
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Idea Generation & Screening: This stage involves the search for new ideas
about a new product. In most organizations, there is an ideation team that develops the
ideas. The employees may choose only a handful of ideas.
Concept development: After selection of an idea, the company has to transform it
into a concept. The marketer then creates alternative product concepts from the new
concern.
Business analysis: Here the officials analyse the sales, profit and costs associated
with the product.
Product development: If the product idea passes through all the previous stages,
it is converted into a. tangible product. This helps to check how well it might work
in the market.
Test marketing: For obtaining customer feedback, the company launches
a prototype. These include marketing, positioning, advertising, targeting, packaging, and
financing.
Commercialization: After test marketing, the company officials get a basic
understanding of how the product might work in real life.
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4. Project Management
Product developers are responsible for overseeing projects from beginning to
end. This includes setting up schedules, spending limits, resource planning, and
directing cross-functional teams to ensure that projects are finished on time and within
the allotted spending limits.
5. Sales and Marketing
Product developers must collaborate closely with sales and marketing teams to
create product positioning, pricing strategies, and marketing campaigns. To spot
opportunities for improvement and make the required changes to the product, they
must also keep an eye on sales data and consumer feedback.
After test marketing, the company officials get a basic understanding of how the
product
might work in real life. So, before the commercialization of the product, all the major
decisions are taken. This will include the identification of the target markets.
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- Economic
- Technical
- Strategic
- Risk analysis of the product
The performance specifications are then determined for the particular product concept. If
they pass the feasibility study, they might get approved for development.
3. Preliminary design:
Preliminary design is the stage in which general project location and design
concepts are determined. It includes all that is necessary to conduct a NEPA
alternatives analysis and review process properly, but good preliminary design goes
beyond that.
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They also analyse designs of other companies and help in generating new ideas.
Responsibilities of a Product Designer
Product designers perform many duties to provide detailed and meaningful designs. But it
can vary from industry to industry. Some typical responsibilities of a product designer are:
1. Bringing New Ideas into Concepts
It is a designer’s responsibility to understand their client’s requirements and idea and
then visualize it through the product. They must understand industry standards and customer
behaviour to incorporate ideas into products.
2. Improving Prototypes
Designers are a part of evaluating and testing new product prototypes. This role also
involves market research and competitor analysis to judge the performance and impact of
their design on a product’s success.
3. User Testing
A target audience sample and comments on new designs may also be included in the
design process. Designers typically do user testing to ensure their prototypes meet consumer
expectations.
4. Product Design Feasibility Study
As a designer, you should also consider the product design feasibility. Using a
feasibility study, designers may forecast the likelihood of successful design. You can use it to
predict a product’s usefulness, popularity, and financial success.
5. Modelling Ideas
Prototypes are evaluated and approved by product designers. This may include
determining if a design complies with the industry’s quality, viability, and safety criteria.
Designers then transform ideas into workable designs and models using computer-aided
design and engineering software.
Product development VS Product design
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Introduction Stage
The introduction phase is the first-time customers are introduced to the new
product. A company must generally include a substantial investment in advertising
and a marketing campaign focused on making consumers aware of the product and
its benefits, especially if it is broadly unknown what the item will do.
Growth Stage
If the product is successful, it then moves to the growth stage. This is
characterized by growing demand, an increase in production, and expansion in its
availability. The amount of time spent in the introduction phase before a company's
product experiences strong growth will vary from between industries and products.
During the growth phase, the product becomes more popular and
recognizable. A company may still choose to invest heavily in advertising if the
product faces heavy competition. However, marketing campaigns will likely be
geared towards differentiating its product from others as opposed to introducing the
goods to the market. A company may also refine its product by improving
functionality based on customer feedback.
Financially, the growth period of the product life cycle results in increased
sales and higher revenue. As competition begins to offer rival products, competition
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increases, potentially forcing the company to decrease prices and experience lower
margins.
Maturity Stage
The maturity stage of the product life cycle is the most profitable stage, the
time when the costs of producing and marketing decline. With the market saturated
with the product, competition now higher than at other stages, and profit
margins starting to shrink, some analysts refer to the maturity stage as when sales
volume is "maxed out".
Depending on the good, a company may begin deciding how to innovate its
product or introduce new ways to capture a larger market presence. This includes
getting more feedback from customers, and researching their demographics and their
needs.
Decline Stage
As the product takes on increased competition as other companies emulate its
success, the product may lose market share and begin its decline. Product sales begin
to drop due to market saturation and alternative products, and the company may
choose to not pursue additional marketing efforts as customers may already have
determined whether they are loyal to the company's products or not.
Should a product be entirely retired, the company will stop generating support
for it and will entirely phase out marketing endeavors. Alternatively, the company
may decide to revamp the product or introduce a next-generation, completely
overhauled model. If the upgrade is substantial enough, the company may choose to
re-enter the product life cycle by introducing the new version to the market.
The stage of a product's life cycle impacts the way in which it is marketed to
consumers. A new product needs to be explained, while a mature product needs to be
differentiated from its competitors.
A process is a sequence of steps that transforms a set of inputs into a set of outputs.
Most people are familiar with the idea of physical processes, such as those used to bake a
cake or to assemble an automobile.
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Some organizations define and follow a precise and detailed development process, while
others may not even be able to describe their process. Furthermore, every organization
employs a process at least slightly different from that of every other organization. In fact, the
same enterprise may follow different processes for each of several different types of
development projects.
A well-defined development process is useful for the following reasons:
• Quality assurance: A development process specifies the phases a development project
will pass through and the checkpoints along the way. When these phases and check-points
are chosen wisely, following the development process is one way of assuring the quality of
the resulting product.
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1. Concept development:
In the concept development phase, the needs of the target market are
identified, alternative product concepts are generated and evaluated, and one
or more concepts are selected for further development and testing.
A concept is a description of the form, function, and features of a product and
is usually accompanied by a set of specifications, an analysis of competitive
products, and an economic justification of the project.
2. System-level design:
The system-level design phase includes the definition of the product
architecture, decomposition of the product into subsystems and components,
preliminary design of key components, and allocation of detail design
responsibility to both internal and external resources.
Initial plans for the production system and final assembly are usually defined
during this phase as well.
The output of this phase usually includes a geometric layout of the product, a
functional specification of each of the product’s subsystems, and a preliminary
process flow diagram for the final assembly process.
3. Detail design:
The detail design phase includes the complete specification of the geometry,
materials, and tolerances of all of the unique parts in the product and the
identification of all of the standard parts to be purchased from suppliers.
A process plan is established and tooling is designed for each part to be
fabricated within the production system.
The output of this phase is the control documentation for the product—the
drawings or computer files describing the geometry of each part and its
production tooling, the specifications of the purchased parts, and the process
plans for the fabrication and assembly of the product.
Three critical issues that are best considered throughout the product
development process, but are finalized in the detail design phase, are materials
selection, production cost, and robust performance.
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Product cost analysis defines the processes and tools used by cost engineers to assess
the cost of new product designs. The cost analysis process considers all the costs associated
with manufacturing a product from infancy to launch.
Costs provide a basic criterion for controlling the design; they need to be monitored
throughout development to ensure they are within the target range. At the beginning of the
design, the company's cost structure and the target range of costs for the new product need to
be agreed by all involved. The basic costs for producing and distributing the product can be
subdivided into manufacturing costs, distribution and marketing costs and general company
costs.
Product costs are the costs directly incurred from the manufacturing process. The
three basic categories of product costs are detailed below:
1. Direct material
Direct material costs are the costs of raw materials or parts that go directly into
producing products. For example, if Company A is a toy manufacturer, an example of a direct
material cost would be the plastic used to make the toys.
2. Direct labor
Direct labor costs are the wages, benefits, and insurance that are paid to employees
who are directly involved in manufacturing and producing the goods – for example, workers
on the assembly line or those who use the machinery to make the products.
3. Manufacturing overhead
Manufacturing overhead costs include direct factory-related costs that are incurred
when producing a product, such as the cost of machinery and the cost to operate the
machinery. Manufacturing overhead costs also include some indirect costs, such as the
following:
Indirect materials: Indirect materials are materials that are used in the production
process but that are not directly traceable to the product. For example, glue, oil, tape,
cleaning supplies, etc. are classified as indirect materials.
Indirect labor: Indirect labor is the labor of those who are not directly involved in
the production of the products. An example would be security guards, supervisors,
and quality assurance workers in the factory. Their wages and benefits would be
classified as indirect labor costs.
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Direct Cost: These are costs that can be directly attributed to the production of a
specific product, such as raw materials, labor, and components.
Indirect Costs (Overhead): These are costs that are not directly tied to a single
product but contribute to the overall manufacturing process. Examples include facility
rent, utilities, administrative salaries, and quality control.
Variable Costs: Costs that change in relation to the quantity of products produced,
such as direct materials and labor costs.
Fixed Costs: Costs that remain constant regardless of the quantity produced,
including expenses like rent, equipment depreciation, and administrative salaries.
Cost drivers: Factors that influence the level of costs incurred, such as design complexity,
production volume, material selection, and manufacturing methods.
Lifecycle Costs: Costs that extend beyond the initial manufacturing stage and include
expenses related to maintenance, support, and end-of-life disposal.
Design for Manufacturing (DFM) and Design for Cost (DFC): Strategies where product
designers aim to create products that are optimized for efficient and cost-effective
manufacturing processes.
Price Estimation: Cost models help inform pricing strategies by providing insights into the
cost structure of the product.
Scenario Analysis: Cost models enable organizations to evaluate different scenarios and
trade-offs, such as the impact of changing materials, production methods, or production
volumes on the overall cost.
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needs, which means there is no standard cost or difficulty per project. To know their real
costs, this company needs to know each team member’s total time contribution as well as the
group’s material expenses and overhead costs.
This analysis should ultimately include everything from the utility and property costs
for the company’s building to purchase of creative rights, cost of domain names and
segmented investment in digital outreach. An effective model should show the total cost for
each part of the service package, from launching the site to maintaining it each month and
conducting marketing efforts.
REVERSE ENGINEERING
Reverse engineering is deconstructing or dismantling a product to learn how it works
and understand more about its design. This can include software, a mechanical part, a piece
of technology or architecture. Companies can also use reverse engineering to learn to
reproduce or improve the item. This means that engineers try to recreate or mimic a product
without the original blueprints, which is why they have to disassemble the finished item.
While there are many ways to reverse engineer a product, a popular method is to take apart a
smaller part of a product for examination, such as the pistons from a car engine.
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Review: This involves reviewing the model and testing it in various scenarios to
ensure it is a realistic abstraction of the original object or system. In software
engineering this might take the form of software testing. Once it is tested, the
model can be implemented to reengineer the original object
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With reverse engineering, you have the ability to streamline a product’s design into a more
contemporary configuration for newer performance standards. Stripping down a product will
provide you with the information to work out outdated kinks in an older system to make it
more efficient and last longer.
3. Discovering any Product Vulnerabilities
The use of reverse engineering is also ideal for finding defects in products and
extending the product’s functional life cycle period, this is all in favor of the safety and well-
being of the product’s consumers. Faults and errors can be detrimental once arising in the
distributing phase, so it is always better if they are quickly detected during the researching
phase.
From finding out the issues that your products have, to pulling back the curtain using reverse
engineering to take a closer look at where the vulnerabilities are, they are all parts of a logical
process that result in much-needed and critical improvements, in the pursuit of perfection.
4. Bringing Cheaper and More Efficient Products to Market
Reverse engineering can be implemented as a development strategy for manufacturers
who study the products manufactured by their competitors, and by speeding up the time it
takes to launch the products to the market, organizations can preserve money and resources to
put into use in the future. Analysis of what a product consists of will also be the grounds to
recreate that item at a lower cost, offer alternatives that can minimize assembly or substitute a
part that will pay dividends in the long run-in terms of time or shipping.
5. Creating a Reliable CAD Model for Future Reference
It is essential to have accurate design data to ensure production efficiency in computer
aided manufacturing and for future reference, especially in the case of legacy projects, where
older technologies might become outdated very quickly and need to be updated regularly. In
these situations, imagine how difficult it would be to work on updating the technology
without the documented design data.
Most reverse engineering procedures include creating a CAD file that can be examined
digitally if future issues arise, making it easy for updating legacy products with new
components, power sources, and other technologies, and in this way, it has massively
enhanced engineering productivity and product expression.
6. Inspiring Creative Minds with Old Ideas
One of the most important influences of reverse engineering in product development
is that it provides the opportunity for innovative design, in which engineers do not have to
start from scratch, but instead can improve and innovate an existing design or draw on
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previous knowledge. As a result, creating new products with better functions and better
performance has never been easier. This approach has been proven to be incredibly useful in
implementing new ideas and promoting innovation in big organizations.
Steps of Reverse Engineering
Here are five steps to reverse engineer a product:
1. Collect information
The first step in reverse engineering is to collect information about the product. This
could mean identifying source designs, product measurements or original coding of the
device. Collecting information is essential for reverse engineering because the engineers need
to know as much as possible about the product before deconstructing it. The product's
measurement is helpful for creating the model.
2. Create a model or sketch
After collecting information about the product, the team can now create a model or
sketch of the product or part they are reverse engineering. This is usually a three-dimensional
model so that the engineers can analyze all parts of the product by viewing an accurate
representation of it. Engineers can create their model using computer-aided design (CAD).
These sketches help engineers understand the purpose of the product's design.
3. Begin disassembly
Once the engineers have made and evaluated the design, they can disassemble the
product layer by layer. The engineers usually organize the parts in the order that they took
them off for easier reassembly. As the team removes each part, they may analyze, measure or
scan the product to understand the function of the item.
4. Evaluate the product
After the engineers have taken apart as much or as little of the product that they need,
they can evaluate the removed parts or any parts that they left. They may take notes on how
they can improve the product or any errors they found. They could even scan the tracing of
the product to help them rebuild it. The team could also document any important findings
from their reverse engineering.
5. Reassemble
If the purpose of the reverse engineering is to recreate the item, the engineers may
also reassemble the product. Rebuilding tests the engineers' knowledge of the product and
allows them to make potential changes as they rebuild it. This could help them create a new,
updated or original version of the item they dismantled. One purpose of reverse engineering
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is to learn about the product, and reassembling the item helps the team understand building or
recreating it.
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help you realize the need for a product redesign. When you notice a lot of negative feedback
coming your way, that’s your cue.
2. Poor product designs
Your idea and features may be right for your users but the poor product design is a big
user disappointment. No additional features or offers will help you to onboard or retain users
if your design is a hindrance in delivering the primary functionality. These are the products
that need to be redesigned.
3. Dated Design
Remember you are not changing the whole outlook of your design. The redesign
should be recognizably the same. The most loved features should be exactly where they
expect them to be and function the same they expect.
4. Brand Updates
Whenever you update any element of your brand, you must compulsorily consider
going for a product redesign. And redesign a product considering the brand updates comes
off as the easiest of all. You never realize it but many apps and brands like Gmail or
Instagram wouldn’t have been as successful as they are today if they wouldn’t choose product
redesign.
5. Bad Metrics – Signal for redesigning
How many times you’ve been dissatisfied with the current metrics of your product?
And also tired of trying all the alternatives? Now, this is crucial when you need to consider a
product redesign. It can attract the users’ attention with a change, and solving their problems
will influence them to use and come back to your product.
BENEFITS OF PRODUCT REDESIGN
1. Influenced Buying behavior
Design is impactful and we all know it. A minor change in the design and visual
appearance of an application or a website can completely change users’ perceptions.
Especially when your existing design is turning out to be fruitful in terms of metrics.
Even though the UX structure is good but the visual appeal is not helping, a product
redesign can be helpful to turn the tables around.
2. Technological updates
With new technological changes and updates that your product is adapting, you need
to make sure that the product’s design isn’t left behind.
If the design is not incorporating the latest technology then it won’t be appealing to
the users.
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And they will shift towards better designs even though your website or application or
digital product has a better user experience but an outdated UI can turn harmful to
your business.
3. A new look, new experience
Something new always catches our undivided attention. And it goes the same for your
digital product. When you opt for a product redesign it ought to attract a lot of new
users.
Also, this will enhance the brand’s visibility with existing users.
The new and updated design will be well received rather than an outdated design.
As a result, you gain more user engagement and expand your user base while the
users are satisfied with your digital products.
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efficient for your product redesign process when building from scratch. It is crucial to ensure
the solutions you’ve concluded are efficient for the users and the business.
4. Action Time
Let’s get the drums rolling and start the design part of the process. Develop a
systematic design system first and then go through it with the developer’s team to ensure the
design’s feasibility. Hence, ensuring that the outcome doesn’t come as rather surprising.
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The scheme above consists of four phases that lead from the problem to the solution:
Discovery: revealing and understanding the initial problem to be solved
Definition: identifying the key challenges and pain points and defining the jobs-to-
be-done
Exploration: finding opportunities for improvement and ideating a suitable solution
Execution: iterative solution design, validation, and implementation.
Through this process, you will understand what motivates customers to use your product and
what their expectations are for the user experience.
Step 4. Define problem areas and opportunities for improvement
Jobs to be done, analytics, and user interviews help you reveal the problem areas of
your existing design and understand what needs to be improved. For example, you can
inspect your product screens or pages and identify elements that confuse users, work
improperly, look outdated, or are not engaging enough. These are all problem areas that can
be fixed in your product redesign.
Discuss with your team what improvements you can make to fix the identified
problems. You can generate numerous ideas during brainstorming sessions and then select
the most appropriate ones.
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New Product Development refers to the complete process of bringing a new product
to market. This can apply to developing an entirely new product, improving an existing one
to keep it attractive and competitive, or introducing an old product to a new market.
The emergence of new product development can be attributed to the needs of
companies to maintain a competitive advantage in the market by introducing new products or
innovating existing ones. While regular product development refers to building a product that
already has a proof of concept, new product development focuses on developing an entirely
new idea—from idea generation to development to launch.
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1. IDEA GENERATION
The process of developing a new product begins with the generation of ideas. It is one
of the most crucial phases of product development and entails brainstorming an idea (or
ideas) that would help you overcome an existing customer problem in a novel and creative
way. It’s critical to have a thorough understanding of the target audience and their pain
points, which you should tackle while brainstorming ideas to help you meet customer needs.
There are two potential sources of fresh ideas:
Internal source: The company generates new ideas internally. It includes both R&D
and staff contributions. Employees are frequently the biggest source of fresh ideas, as
they are constantly exposed to the product as well as consumer
feedback. Organizations like Toyota have created incentive programs to encourage
their employees to come up with viable ideas in this regard.
External sources: The company seeks out new ideas from outside sources. It
includes external sources such as distributors and suppliers, as well as competitors.
Customers are the most significant external source since the new product
development process stages must be centered on delivering value to customers.
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2. IDEA SCREENING
The new product development process’s second step builds on the first. You’ve
amassed as many ideas as possible and made a list of them. It’s now time to cross off any
ideas that aren’t good enough from your list.
However, there are more things to consider while screening a product idea than
whether it is “strong” or “weak.” Ideas must also be compatible with a company’s broader
business plan and direction.
The usability of these product concepts should be determined by three primary
factors: return on investment, affordability, and market potential. Other considerations
include the product’s capacity to be successfully marketed, its link to competing products,
distribution, product pricing, and production time.
A SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis might prove
to be useful when shortlisting new product development concepts.
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Setting profit expectations is the purpose of this step in the new product development
process. Business analysis and marketing strategy are intertwined with developing a strategy
for reaching out to and connecting with a specific demographic and must be regarded as a
critical phase in the new product development process’s seven stages.
This stage, also known as marketing strategy development, involves a few key elements in
the construction of a good marketing mix. The following are some of these aspects:
Definition of the target market, as well as the value proposition offered from the
customer’s point of view
Profit targets over time, particularly during the first year
Pricing, distribution, and overall budget
Sales forecasts for the long run
5. PRODUCT DEVELOPMENT
Your product is fit to become a prototype or the first edition of a product at this point
in the new product development process. This way, you’ll have a physical representation of
your concept that you can test in real life rather than just on paper. This prototype, also
known as a minimal viable product (MVP), is a simple version of your product that will help
you gain a sense of how it works and point out areas that have to be improved.
For iterative and incremental development, a minimum viable product (MVP) could
be introduced and deployed in the market with minimal features. Naturally, modifications are
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based on the fundamental response from customers, which is obtained through effective
communication and collaboration.
R&D and operational expenses create a significant increase in spending at this stage.
One or more physical copies of the product concept will be developed and tested by the R&D
department.
6. TEST MARKETING
You’re doing market testing when you release prototypes to the target demographics
and ask for their feedback on how well the product works. It involves inquiring about what
your target audience enjoys about your proposed product and what they want to see fixed or
incorporated into it.
Running a test of your product early on can ensure its success before investing too
much time and money. A positive response indicates that there is sufficient demand for the
product, which leads to the start of the manufacturing process.
There are two types of market testing methodologies:
Alpha testing involves test engineers analyzing a product’s performance. They keep
track of the marketing mix’s effects on the final product. If there are any issues,
changes are planned and implemented before the final thumbs up.
Beta testing involves customers using the product and giving input to the company. It
has to do with paying close attention to the customer’s voice. If there are any
problems, they are returned to the project team for correction.
7. COMMERCIALIZATION
Commercialization is the ultimate stage of the new product development process,
where you put your products on the market. The business will need to establish or rent a
production facility in this phase, which will incur the biggest expenditures. In the first year, a
significant amount of money might be spent on advertising, product promotion, and other
marketing operations.
Here are a few of the most important considerations:
Calculate the global market for your product and introduce an appropriate quantity
based on that estimate
Make the relevant advertisements and stick to a marketing strategy that works
Ensure your marketing strategy includes digital channels
Prepare your consumers for a new product launch
Choose a launch date and location for your product
Keep a tight eye on your product and pay attention to its performance
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This product teardown process is performed to analyse how the Product Functions are
achieved in that product, and how the Components are assembled, how the Corporate and
manufacturing strategies working.
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