Question:
From an idea to a commercial product, new product development is a challenging business operation. Please explain the process and provide an example of a new product that you utilize. How do organizations know about consumer desires and preferences?
Answer:
In the process of creating a product, the first stage is the generation of ideas. The next step is the selection of ideas. The selection of ideas is the analysis of all the ideas put forward about a new product in order to screen out unpromising ones at the earliest stage of development (Noble, Griffin & Durmusoglu, 2014). After the appearance of the final product idea, the developer creates the concept and verifies it, as well as develops a marketing strategy. The idea of a new product is transformed into a product concept, which is being tested on a group of target consumers in order to determine the degree of its attractiveness. The concept can be presented to consumers verbally or in the form of illustrations. The founder conducts marketing research and finds out the target audience of the product, its demand, and pricing in the chosen market niche (Noble, Griffin & Durmusoglu, 2014). Another step is the analysis of the business and the development of the product. After conducting various studies, the company launches the trial period of marketing, tests it, and corrects the identified errors. After upgrading the marketing company, the company starts commercial production.
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A vivid example of the idea implemented in a commercial project is the iPhone made by Apple Company. In 2002-2004, the Apple director was working on the idea of creating a device capable of combining all the gadgets that people had to carry separately such as a mobile phone, a musical player, and a personal computer (Merchant, 2017). Thus, the idea of creating an iPhone smartphone from Apple appeared. Then Steven Jobs and other employees of the company created the concept of the product and conducted marketing research, which showed the existing demand for smartphones of the new generation (Merchant, 2017). The next stage was the launch of a trial marketing campaign, which had a huge success. After a successful marketing campaign, Apple launched mass production of the product, which was the iPhone smartphone.
References
Merchant, B. (2017). The One Device: The Secret History of the iPhone . Little, Brown.
Noble, C., Griffin, A., & Durmusoglu, S. (2014). Open Innovation: New Product Development Essentials . John Wiley & Sons.
