Product Development Process

Product Development Process


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Product Development Process

Success in the current changing and competitive business environment is dependent on several factors, including the marketing and development stage of a new product or service. However, there are systematic processes that the majority of organizations follow before the products and services reach the consumer. The systematic processes for products and services are distinctly different but are all aimed at the delivery of acceptable products and services to the market.

New Product Development Process

In the development and launching a tangible product, there steps a product manager follows in the New Product Development Process. The first step is the idea generation which is the identification of ideas or market gap that yields essential customer benefits. Secondly, is the screening process which is concerned with the definition of roles of the new product, conducting an environment scan, and the examination of threats from disruptive technology. The third step is the concept evaluation. Under the stage, the manager develops a variety of possible products, internal focus, and external relationships. Also, there is the analyzing of competition and seeking resources or funding. The fourth and fifth steps are concerned with the evaluation of technical feasibility and concept testing and even the making of financial projections.

Additionally, the fifth stage also involves the accomplishment of the requisite product and marketing strategy. The sixth step is the conception of a prototype that gauges the reactions of the customer for improvements. The second last step is on test marketing which are of three types; standard, controlled and simulated. Lastly is the launching of the new product or commercialization, involving full-scale production.


The development process of services follows the same process but slightly differs. The first difference is under the technical feasibility stage the company considers employee interactions. In particular, the step involves the capabilities and commitment of employees in executing the new service. Project managers focus on the five dimensions of service quality and the 4Ps. Based on the five dimensions, customers would be keen on checking reliability, tangibility, responsiveness, assurance, and empathy. In terms of the 4Ps; product, price, place, and promotion, a project manager would adjust the process to be suited for the development of quality services. A customer planning to fly would check whether the flight would be on time, cleanliness of the plane’s interior, friendliness of attendants, the competence of employees, and whether the employees would consider if special treatment is required. Therefore basing of the five dimensions of service quality and 7Ps, a project manager acts differently in the New Product Development Process.

Another difference is on the product development where managers analyze the sequence of service encounters, aiming at improving customer interactions. Product managers would do things differently during the engaging of customers to evaluate services. In the case of products, customers may determine goods based on the search properties such as the size, colour, or style for maybe clothing. However, in evaluating services, the customers may evaluate based on experiences or credence properties. Based on experiences, a customer estimates the experience of the employees, such as how long a restaurant has been in the market. On the other hand, basing on credence properties is difficult. An excellent example is in the medical profession where the characteristics are impossible for customers to evaluate. Therefore, when project managers consider employee interactions basing on how the customers evaluate the services. Such measures depict how the managing of services is different from managing goods-based marketing.

Furthermore, project managers are keen on the process, people, and physical place of the service during the development process. Project managers consider the procedures, mechanism, and flow of activities of the service. The process is vital as it contributes to creating a good customer experience and excellent service delivery. Furthermore, the managers would consider the employees creating and delivering the service as consumers judge services based on interactions with staff. Equipping and motivating staffs facilitates the delivery of excellent services and customer experience. Lastly, the physical place is crucial as customers are keen on considering the appearance of the environment. Presentations are vital since it dramatically impacts customer perceptions of services. In Summary, the managing of services differs from the management of goods-based marketing since the way customers evaluate goods differs from how they evaluate services.