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 South Carolina Agreement to Conduct Product Development Research is a legally binding agreement established between two parties interested in collaborating on product development research activities within the state of South Carolina. This agreement outlines the terms and conditions under which the research will be conducted, including the responsibilities, rights, and obligations of each party involved. The primary objective of the South Carolina Agreement to Conduct Product Development Research is to facilitate the fruitful collaboration between businesses, academic institutions, research organizations, and government agencies in developing innovative products. This agreement is essential in creating a conducive environment for research and development, promoting economic growth, and fostering technological advancements within the state. The South Carolina Agreement to Conduct Product Development Research encompasses various important elements such as project scope, timelines, intellectual property rights, confidentiality provisions, financial arrangements, and dispute resolution mechanisms. These elements ensure that all parties involved in the research are protected and their contributions are duly recognized. There may be different types of the South Carolina Agreement to Conduct Product Development Research, tailored to specific industries or research sectors. For instance, there could be agreements focused on biomedical product development, technology innovation, agricultural research, or environmental sustainability. Each variant of this agreement may have specific clauses and conditions that cater to the unique requirements and characteristics of the respective field. In summary, the South Carolina Agreement to Conduct Product Development Research serves as the foundation for collaboration and innovation in South Carolina. By fostering meaningful partnerships between various stakeholders, it paves the way for advancements in technology, economic growth, and overall societal progress.
