In a changing market, staying competitive often requires the development of new
products. As consumer tastes and needs change, products must also change. Developing new products, however, is a risky and costly venture. Market research is an essential tool to help boost the chances for success.
The new product development process has at least six stages.
1. Opportunity identification. To start, you should seek holes in the market that might be opportunities. At this stage, the following information gathering techniques are useful: focus groups, consumer surveys, analysis of customer suggestions and complaints, brainstorming, industry research (size of market, consumption patterns), and analysis of competitors products.
2. Concept screening. Next, you will move from generating ideas to testing ideas. In concept screening, you describe the product idea to potential customers and ask, would you buy this product? If consumers do not like the idea of your product, the physical product will probably not do well either. Concept screening allows for the evaluation of winners and losers early in product development before substantial resources are committed to a products development. At this stage, focus groups and consumer surveys are useful research methods.
3. Marketing strategy development. Next, you will set a plan for your marketing mix (the four Ps):
A. Product. Define your product in terms of varieties, quality, design, features, brand, packaging, sizes, service, and warranties.
B. Price. Develop a pricing strategy. Consider how you will use list price, discounts, allowances, payment periods, and credit terms.
C. Place. How will your products get to your customers? Which channels will you use (retail, wholesale, foodservice)? Consider the best locations to reach your target market. Also consider transportation, inventory, and storage.
D. Promotion. How will you use the following: sales promotion (coupons, allowances, discounts), advertising, salespeople, public relations?
4. Product development. At this stage, using the information you have collected and the decisions you have made about the 4 Ps, you will design and create the physical product, as well as its packaging, name, logo, and advertising. Research at this stage usually involves repeated cycles of product improvement and testing. Product testing includes both physical performance (e.g., shelf stability) and consumer reactions.
5. Market testing. This stage is a last check on the product before it enters the market. At this point, product performance tests are complete. Market testing aims to evaluate advertising, awareness, and usage (AAU) of the product in test markets. The techniques used include simulated store testing and controlled test marketing. Some marketing research firms offer AAU studies.
6. Product introduction. As you introduce the product to the market, you should test the distribution of the product. Is the product getting on the shelves? Is it getting a favorable presentation on the shelves?
The Kansas Agreement to Conduct Product Development Research is a legally binding contract between two parties that outlines the terms and conditions for conducting product development research in the state of Kansas. This agreement serves as a framework to protect the rights and interests of both the researcher and the organization funding the research. The agreement typically begins with a clear and detailed statement of the purpose of the research, including the objectives, scope, and expected outcomes. It will also include the project timeline and milestones, establishing a foundation for efficient and effective collaboration. To ensure the smooth progression of the research, the agreement will outline the responsibilities of each party involved. This includes the researcher's obligations to provide regular progress reports, adhere to ethical research practices, and maintain confidentiality of sensitive information acquired during the research process. In terms of intellectual property, the agreement will focus on protecting the rights and ownership of any inventions, patents, or other valuable discoveries resulting from the research. It will establish clear guidelines for intellectual property ownership, licensing, and commercialization, ensuring that the parties' interests and rights are safeguarded. The Kansas Agreement to Conduct Product Development Research also addresses financial matters such as budget, payment terms, and the allocation of research costs. It is crucial to define how expenses will be shared between the parties and establish a process for reimbursement, if applicable. This section of the agreement may vary depending on the nature of the research and the specific agreements reached by the parties involved. Additionally, the agreement may outline the termination or modification procedures in case of unexpected circumstances or changes in the project's scope. This includes provisions for dispute resolution and a clear definition of the governing law in case of legal disagreements. There are different types of Kansas Agreements to Conduct Product Development Research depending on the specific nature of the research being conducted. Some common types may include: 1. Collaborative Research Agreement: This agreement is used when two or more organizations or entities collaborate on a research project, sharing resources, knowledge, and expertise to achieve a common research goal. 2. Sponsored Research Agreement: In this type of agreement, one party funds the research while the other conducts it. The funding party usually expects some form of deliverable or specified outcomes from the research. 3. Confidentiality Agreement or Non-Disclosure Agreement (NDA): This type of agreement is often used to protect the confidentiality of sensitive information shared during the research process. It ensures that both parties maintain strict confidentiality and do not disclose any information to third parties without proper consent. Overall, the Kansas Agreement to Conduct Product Development Research is a crucial document that provides a comprehensive framework for conducting product development research in the state. It defines the rights, obligations, and expectations of the parties involved, facilitating a productive and mutually beneficial research collaboration.
