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?
Title: Pennsylvania Agreement to Conduct Product Development Research: A Comprehensive Overview Introduction: In Pennsylvania, the Agreement to Conduct Product Development Research serves as a vital framework for collaboratively engaging in research activities focused on product development. This detailed description aims to highlight the significance of this agreement, its objectives, and potential variations within its domain. Key Terms: — Pennsylvania: The state in the northeastern United States known for its thriving economy, innovation-focused industries, and research institutions. — Agreement: A legally binding document that outlines the terms, conditions, and obligations between parties involved in collaborative research efforts. — Product Development Research: The systematic process of creating, improving, and introducing new or enhanced products to the market. Objectives of Pennsylvania Agreement to Conduct Product Development Research: 1. Collaboration: The agreement aims to foster collaboration between entities such as corporations, research institutions, startups, and individual researchers involved in product development research. 2. Knowledge Sharing: Key to the agreement is the exchange of knowledge, expertise, and resources to enhance product development capabilities. 3. Intellectual Property Protection: The agreement addresses the critical issue of intellectual property rights, defining ownership, usage, and licensing of any discoveries, developments, or inventions resulting from the research. 4. Innovation Ecosystem: By promoting collaboration, the agreement bolsters Pennsylvania's innovation ecosystem, fostering economic growth and competitiveness. Different Types of Pennsylvania Agreement to Conduct Product Development Research: 1. Corporate-Academic Research Collaboration: This type of agreement involves partnerships between companies and academic institutions, leveraging each party's strengths to jointly conduct product development research. Example Keywords: industry-academia collaboration, technology transfer, sponsored research. 2. Public-Private Partnership: These agreements bring together public research organizations, such as government entities or national laboratories, and private entities to collaborate on product development research for the public good. Example Keywords: government-industry collaboration, technology commercialization, public funding. 3. Small and Medium-sized Enterprise (SME) Collaboration: These agreements encourage cooperation between SMEs, facilitating joint research ventures that help smaller businesses enhance their product innovation capabilities. Example Keywords: startup collaboration, innovation networks, shared resources. 4. Consortium Agreements: These agreements formalize research collaborations among multiple organizations or institutions, fostering collective research efforts and resource pooling. Example Keywords: multi-party collaborations, joint ventures, collaborative consortium. Conclusion: The Pennsylvania Agreement to Conduct Product Development Research plays a fundamental role in facilitating collaboration, knowledge sharing, and intellectual property protection in the state's product development research landscape. Its versatility allows for various types of agreements, serving diverse stakeholders such as corporations, academia, government entities, and SMEs, thereby nurturing innovation and contributing to Pennsylvania's economic growth.
