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?
Maryland Agreement to Conduct Product Development Research is a legally binding document outlining the terms and conditions agreed upon between parties engaged in product development research activities within the state of Maryland. This agreement plays a vital role in establishing a clear understanding and cooperation between the participating entities, ensuring the smooth progression and success of the research project. The primary objective of a Maryland Agreement to Conduct Product Development Research is to define the scope of the research project, establish the responsibilities and obligations of each party, protect intellectual property, and set forth guidelines for the development, testing, and implementation of the product. It encompasses various crucial aspects related to research, collaboration, and product commercialization. Key elements and keywords associated with a Maryland Agreement to Conduct Product Development Research include: 1. Parties involved: The agreement identifies the participating entities, such as research institutions, universities, private companies, and individuals, who are collectively involved in the product development research. 2. Purpose and scope: The agreement clearly outlines the purpose of the research project, including the desired outcomes, objectives, and milestones. It defines the scope of the research, specifying the areas of focus and the limitations if any. 3. Confidentiality and intellectual property: Intellectual property rights are a critical component of any research agreement. The Maryland Agreement to Conduct Product Development Research includes provisions regarding the protection of confidential information, trade secrets, patents, copyrights, and other intellectual property rights. It establishes conditions for the licensing, sharing, and ownership of intellectual property developed during the research. 4. Funding and resources: The agreement may specify the financial arrangements, funding sources, and allocation of resources required for the research and development activities. It may outline the obligations and expectations related to funding, including disbursement, accounting procedures, and reporting obligations. 5. Collaborative efforts and responsibilities: The agreement defines the roles and responsibilities of each party involved in the research. It outlines the expectations regarding cooperation, communication, and exchanges of information, data, and results. Collaboration guidelines are established to ensure effective teamwork and progress tracking. 6. Termination and dispute resolution: In cases where disagreements or issues arise during the research project, the agreement typically includes provisions for dispute resolution mechanisms and termination procedures. These provisions aim to address conflicts in an amicable manner and outline the course of action if the agreement needs to be terminated prematurely. Types of Maryland Agreements to Conduct Product Development Research: While the fundamental elements of a Maryland Agreement to Conduct Product Development Research remain the same, there might be various types or specific agreements tailored to different sectors or industries. Some common types include: 1. Biotechnology Product Development Research Agreement: This agreement is designed specifically for research activities in the biotechnology sector, covering aspects related to biological products, pharmaceuticals, genetic research, and medical devices. 2. Technology/Product Licensing Agreement: This type of agreement focuses more on the licensing and commercialization of the research results. It defines the terms for the transfer of technology, patents, copyrights, or other intellectual properties to third-party entities for commercial purposes. 3. Government Research Collaboration Agreement: When government bodies or agencies collaborate with research institutions for product development, a specific agreement outlines their roles, responsibilities, and funding arrangements. Such agreements may have additional clauses regarding regulatory compliance and reporting obligations. In conclusion, a Maryland Agreement to Conduct Product Development Research is a comprehensive legal document that establishes the terms of engagement between the participating entities. It ensures a clear understanding of roles, responsibilities, and intellectual property rights, facilitating successful research collaboration and innovation.
