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Concepts of Developing A Product

The document outlines the key stages in developing a new product concept: 1) Identifying customer needs through research to define product specifications. 2) Establishing target specifications and analyzing competitive products based on customer needs. 3) Generating and selecting a product concept, then refining specifications while considering economic factors. 4) Planning the remaining development process with activities, resources, expenses, and milestones.

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Nhatz Gallosa Marticio
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84 views2 pages

Concepts of Developing A Product

The document outlines the key stages in developing a new product concept: 1) Identifying customer needs through research to define product specifications. 2) Establishing target specifications and analyzing competitive products based on customer needs. 3) Generating and selecting a product concept, then refining specifications while considering economic factors. 4) Planning the remaining development process with activities, resources, expenses, and milestones.

Uploaded by

Nhatz Gallosa Marticio
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Concepts of Developing a Product

Concept development is a critical phase in the development of a product. In this stage, the needs of the target
market are identified and competitive products are reviewed before the product specifications are defined. The
product concept is selected along with an economic analysis to come up with an outline of how a product is
being developed. Below is a figure that shows the stages of concept development of a product.

The process of product development follows the following steps:


A. Identify Customer Needs: Using survey forms, interviews, researches, focus group discussions, and
observations, an entrepreneur can easily identify customers ‘needs and wants. In this stage, the
information that can be possibly gathered are product specifications (performance, taste, size, color,
shape, life span of the product, etc.). This stage is very important because this would determine the
product to be produced or provided.

B. Establish Target Specifications: Based on customers' needs and reviews of competitive products,
you may now establish target specifications of the prospective new product and/or services. Target
specifications are essentially a wish-list.

C. Analyze Competitive Products: It is imperative to analyze existing competitive products to provide


important information in establishing product or services specifications. Other products may exhibit
successful design attributes that should be emulated or improved upon in the new product or services.

D. Generate Product Concepts:After having gone through with the previous processes, you may now
develop a number of product concepts to illustrate what types of product or services are both
technically feasible and would best meet the requirements of the target specifications.

E. Select a Product Concept: Through the process of evaluation between attributes, a final concept is
selected. After the final selection, additional market research can be applied to obtain feedback from
certain key customers.

F. Refine Product Specifications: In this stage, product or services specifications are refined on the
basis of input from the foregoing activities. Final specification as the results of extensive study,
expected service life, projected selling price and among others are being considered in this stage.
G. Perform Economic Analysis: Throughout the process of product development, it is very important to
always review and estimate the economic implications regarding development expenses,
manufacturing costs, and selling price of the product or services to be offered or provided.

H. Plan the Remaining Development Project: In this final stage of concept development, you may
prepare a detailed development plan which includes list of activities, the necessary resources and
expenses, and development schedule with milestones for tracking progress.

Group Interview
Directions: Select a successful entrepreneur or practitioner. Conduct an interview using the set of
questions below. Document the interview and present this to the class.
1. How did you identify your customers?

_________________________________________________________________________________
_________________________________________________________________________________
______
2. What were your considerations in selecting your customers?

_________________________________________________________________________________
_________________________________________________________________________________
______
3. Explain how your product or service becomes unique compared to other products.

_________________________________________________________________________________
_________________________________________________________________________________
______
4. Did you consult somebody before you engage in this business? Cite sample insights that you gained
from the consultation.

_________________________________________________________________________________
_________________________________________________________________________________
___

5. What were your preparations before you started the actual business?
_________________________________________________________________________________
_________________________________________________________________________________
_____
6. What creative and innovative techniques did you adopt to your product or service? What was the
effect of the innovative techniques to the sales and profits of your business?

_________________________________________________________________________________
_________________________________________________________________________________
____
7. What strategy did you consider to have a unique selling proposition to your product or service?

___________________________________________________________________________________________
__________________________________________________________________________
Legeng:

Copy on your notebook

Group activity to be submitted on Tuesday (June 11, 2019)

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