New Product Development, Process, Strategy, Need, Cost, Market, ROI

1. Is there a perceived need?

One of the most important things you need to do in introducing your product to your marketplace is to determine whether or not your product or service meets a perceived need. To understand whether or not this is the case, you can study your competitors' products to see if their products can/will do what yours does, and you can study industry trends to see if your product is in keeping with where your industry is headed within the next year to 18 months. Once you have done your preliminary research to determine that there is in fact a need for your product or service, you can proceed to the next steps.

2. Is the market already saturated with similar products?

In studying your competition, you will likely find similar products that prospective clients are currently using. Some questions to consider include: Are there too many players in this game? How does my product/service stand out against the competition (in other words, how is it different or unique)? Will my product or service be received as just “another one”, or will the marketplace be able to quickly see how it is different?

If the market is already saturated with like products, it is important to differentiate yours against your competition’s before you move any further. This might mean that you have to add, change, or re-create your vision for the product or service, but if it further differentiates you from your competitors, it will be worth the investment of time.

3. What is the cost vs. ROI on this product?

New product development can be very costly, especially if you don’t understand your “ROI”, or “Return On Investment”. Some questions to consider include: What is the cost compared to the retail value of the product or service? How will you know when your cost of creating the product will be paid for by revenue generated from selling the product? If you have to tweak the product to make it more viable, how will that affect your ROI?

Remember also to consider manpower, equipment, tools, production, manufacturing, distribution, advertising, marketing, sales, and potential returns when considering the total cost of the product. All of these items weigh in to the true cost of product development, and need to be considered when budgeting for a new project.

4. Appropriate staff involvement to develop effectively?

Again, it is important to have the appropriate amount of creative and tactical development assistance when bringing a new product to the marketplace. Make sure that your product can be brought to market through the number of people you have tasked with developing the product or service and ensuring it will be successful before it ever launches.

Equally, if not more important, is having the “right” staff to help you accomplish your product development goals. Engaging the right mix of people on your team will ensure that creativity is balanced with tactical ability to achieve the end result, which is to create a product or service that meets a perceived need in the marketplace.

Continue to Part 2 - Product Development

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PRODUCT DEVELOPMENT