Product development can be described as the process whereby marketing opportunities are turned into successful products sales. Products are developed through innovations however it should be noted that majority of the new innovations do not always turn into successes. New products often fail for a variety of reasons and challenges .Business organizations are always founded in order to make profits for their stakeholders. Since business organizations all have profits as motives for being business survival is dependent on remaining competitive. Competition demands that an organization remains a step ahead of its competitors in a given industry. The only way of ensuring this is having the capability to meet the consumers’ demands and expectations is having the knowledge of consumers need and future expectations. In order for an organization to have the capability to meet the consumers demand and expectations employing research is not an option. In order also to sustain profits there is an increasing need to keep on innovating. Modern business environment demand that organizations have ideas of their consumer current needs and their future expectations therefore is the easiest way to ensure that a firm not only survives and returns profits but at the same time remains ahead of its competitors.
New products development implies that the firm is exploring into unchartered territory and since most business employs the product innovation strategy the markets are therefore flooded every year with new innovations. To survive and make profits in such a dynamic market environment where new product are innovated every other day to replace or address new consumers needs. Business organizations not only to always aggressively addressing their customers needs and expectation but ensure there are the exact solutions to consumer needs and expectations. Innovations therefore enable business organizations remain competitive. The right innovation guarantees an organization maximum returns and the top slot in any industry. Any given product has a life cycle that comprises of periods of growth whereby profitability increases as the products market and sales continuously grows. Then the product reaches it‘s peak and its profits begin to decrease and so does the products market growth. To maximize profits therefore organizations should be leaders developing new products and not producing what others have already innovated.
Innovating new products is often a very expensive undertaking and given that the market for the developed product is not always certain, business organizations often require reducing the risks of product failure. Since any new product comes with uncertain markets and therefore increases the risks to fail. Business organizations should always explore the unchartered territories by conducting research which minimizes uncertainty. Before developing any new product organizations should at least have a notion of their consumers’ expectation. To understand or at least have ideas of what consumers expect undertaking market research is not an option but a rule. The best and successful innovations are often solutions to consumers’ problems or answer to an existing gap. This therefore implies that for a firm to be aware of consumer problem or existing market gaps and appropriately provides effective solutions. These problems and existing market gaps are studied, examined and evaluated before successful solutions being offered. Such a process in product development is what can be described as Research in new product development.
Research should help an organization develop strategies that would differentiate its products in the market. In other word in order for an organization to be competitive in an industry its products should distinguish it from competition (Loch & Kavadias 18). Competitive advantage is gained from such factors as low cost of innovations, low costs of production and product performance which is dependent on the quality of the product.
In order for innovations to be turned into successful products that not only recoups the cost used to develop them but also becomes profitable products to an organization. The first step that an organization should undertake involves indentifying their consumer needs. This is usually be done by researching on business problems that can be turned into opportunities (Loch & Kavadias28). This enables an organization indentify the existing market gaps that can be turned into successful products. In order to realize the business problems that can turn into opportunity an organization need to be well aware of their consumers’ requirements. After indentifying the business problems that can answer consumer requirements an organization can only take advantage of such a situation if it is aware of the business opportunity that can result in fulfilling the indentified consumer requirements.
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The organization should also be able to produce products are have the capability of targeting or that capable of being applicable to the targeted business problem. It is this type of capability that enables an organization turn a business problem into a business opportunity. Modern business environment is characterized by changing technology requirements and if an organization decides to innovate new products among other considerations that should be considered the technological capabilities of producing new innovations should be among the most important considerations. The second phase that should follow after the consumer needs have been indentified and seen as an opportunity the market opportunity for the new product should be analyzed. In this face the organization should analyze the competition that the new product is likely to face. This can be analyzed by evaluating the trends in the industry, the market size and the likely product growth. The new product should therefore have a targeted consumers .the organization should also be well aware of their marketing channels before the product is introduced.
Therefore potential partners such as distributors should be considered as part if market analysis. New product can fail simply because of a poor market entry strategy .when preparing to enter a new product in the market a company should have competitive strategies. Such strategies can be developed when the organization has a clear picture of their product positioning well before the market entry. Product pricing also should be considered before the market entry.
Products are can also be developed from ideas that can be generated either from the workforce or from products developed by its competitors .other way of that can lead o innovations include information from distributors ,suppliers and customers. When ideas are generated they are then screened in order to choose the most feasible that can lead into a successful product (Pattinson & Woodside 2007).. Feasible ideas are those that can be developed innovative products capable of meeting customers’ requirements and expectations and therefore succeed in helping differentiating an organization in an industry. Competitive advantage is gained when an organization successful turns the generated ideas into moving products. Turning feasible ideas into successful products reacquires that the ideas are tested before being turned into products. Testing the ideas should be targeted to a market that if product is developed should fulfill its requirement. Ideas can be tested by brainstorming with the targeted audiences to find out their expectations .Prototypes can also be used to test a targeted audience and gauge the potential consumers reactions to the product before the actual product is developed .This helps the organization reduce the risks of product failure .prototypes can also help an organization indentify overlooked issues in their innovations. Consumers’ reactions can therefore be gauged before the actual product is introduced to the market and from their reaction the organization can have the ability of evaluating whether their expectations are meeting by the new developed product.
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Researching the consumers’ reaction using prototypes before introducing new products to them can help an organization therefore indentify the flaws in products and rectify before they are introduced into the market. This can save a lot in terms of
Business organizations are always founded with profits as a motive .In order for an organization to realize profits the costs of developing new products should recouped from the developed products. In other words developing new products should not be undertaken just for the sake of being innovative (Monczka, et al 120). .the product developed should be able to recoup their cost of production and make a hand some return to an organization. In order for an organization to recoup it costs and returns a profit a proper understanding of the market is required.
Researching before developing new products should help an organization develop strategies that would differentiate its products in the market. An organization therefore is enabled to be to be competitive in an industry.
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Competitive advantage is gained from such factors as low cost of innovations, low costs of production and product performance which is dependent on the quality of the product these factors can be gained through research (Trott 57). Prototypes should be used to test a targeted audience and gauge the potential consumers’ reactions to the product before the actual product is developed.
Organizations through research and new products testing should also be able to produce products are have the capability meeting consumers expectations. It is this type of capability that enables an organization turn a business problem into a business opportunity. Modern business environment is characterized by changing technology requirements and to keep up business should remain innovative.