Department of Education

Naga City Division

Naga City Science High School
Barangay Balatas, Naga City

Senior High School Department

Learning Activity Sheet

PRINCIPLES OF MARKETING
Quarter 2 Week 8

Writer: FRANCIS S.A. GUTIERREZ

Naga City Science High School

Evaluator: TERESITA S. ARLANTE, Ph.D.

SHS coordinator

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 Department of Education
Senior High School Department
Naga City Science High School

LEARNING ACTIVITY SHEET 8

DEVELOPING MARKETING MIX: PRODUCT DEVELOPMENT PROCESS

I. Introduction

Product development is the very first stage of the product life cycle, and
when you want to create a product to sell, you need to think thoroughly, evaluate the
product, demand, and distribution characteristics to formulate your business plan. The
method of product creation consists of steps that turn the idea of the product into
marketable products. You start with an idea and end up with technological requirements,
product positioning, pricing strategy, service components, and financial features. This
method can be thought-driven or market-driven at the beginning, but most of the time it
follows the same steps

After going through this module, you are expected to define and explain the
stages of product development process.

What is Product Development Process?

The product development process encompasses all steps needed to take a product from concept
to market availability. This includes identifying a market need, researching the competitive
landscape, conceptualizing a solution, developing a product roadmap, building a minimum
viable product, etc

Who is involved in the process?

Since they are largely responsible for the success or failure of the company's products, product
managers generally guide the product creation process from a strategic point of view. However,
this method is not solely a feature of product management.

Product creation requires the participation and support of a variety of teams around the
organization, including:
• Development
• Design
• Marketing
• Sales
• Finance
• Testing

Product managers serve as strategic managers in the production process. They put together an
entire team, convey the key objectives and goals of the project (through the Product Roadmap)
and monitor the development of the company.

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The 7 steps of the product development process

Although we try to explain the process of product development as a line of chronological steps
towards the ultimate goal, the truth can be very different. The phases of new product
development can sometimes appear in a relatively chaotic order, and you're switching back and
forth between the various steps. Even so, after you've been through them all, you must be ready
to launch the product.

Stage 1: Identification and Concept

First, we determine the initial concept of the product. Sometimes, you won't be able to trace the
exact origins of the product idea, as you can take elements from aha-moment, a conversation
with a buddy, a piece of knowledge you've read, or a statistical event you've found. Let's say it
starts with the idea that you got when you were taking a shower. Your first move is to explain
the idea on a piece of paper.

Idea and design tips:

There are countless ways to conceptualize the idea of a product. It also takes a lot of time for
you to juggle ideas, user reviews, helpful advice, and business feedback. Taking notes during the
journey will allow you to better describe the idea of a product in a written form.
Now, explain the key features, the user wants it to fulfill, and who it’s meant for. Try to
summarize the definition in a couple of lines. When those lines can illustrate the idea to your
grandma, you've made this move.

Brainstorm: Systematic brainstorming is an excellent source of ideas. Remember to keep your

mind fully open, and to take notes throughout the session.

Pitch Proof: Don't hesitate about presenting your idea to anyone. It'll just get richer and help
you develop the pitch and positioning of your product.

Stage 2: Market Research

Market research is about measuring the scale and characteristics of the product's demand. It's a
valuable exercise and something financial partners are constantly looking for, but they're not
allowed to define the product.

Tips for Market Research

Market research is very easy to do due to the practice of open data. Many official organizations
have free access to their datasets. By relying on existing data sources, you can try to draw
conclusions or cross-check market figures to create a realistic market view for your particular
product. It doesn't have to be accurate, as long as the assumptions are transparent and reliable.

Research Online: an online service such as Statista can also have a broad variety of market
figures, and more can be found via Google searches. Much of market research can be conducted
online.

Change: Note that the world is continually changing. There might be a good reason to construct
a market hypothesis that shifts your market size estimates and exposes fascinating market data
for your product.

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Step 3: Business Plan

The economic aspect of product launch is important. While you certainly do not need a fully-
fledged business plan for a product, the type of business plan you need to cover all the economic
variables involved in developing and marketing the product. This will look at all the investments
during product creation and will then set the variables for the appropriate sales pipeline and
related costs once the product is released.
The break-even analysis would determine at what stage the exercise would be profitable. In the
longer term, an appraisal of the importance of the customer's lifetime will lead to the
improvement of the product definition.

Tips for the development of a business plan:

A helpful strategy is to start developing a business plan with two different phases: one for the
whole product development phase and one for the start-up phase. Variables may be different for
each step and may require different types of investment.
In the product development process, expenditure is related to time spent testing, monitoring,
and external expertise, and prototype development. The start-up process of the business plan
will verify the sums that can be invested.

Hypothesis: With every business strategy, the most relevant considerations will often be linked
to the underlying hypothesis you have used. Keep it straightforward, and write it down.

Simulations: Successful business plans use a variable-based hypothesis to model various types
of business scenarios.

Step 4: Prototype

This step is named after the prototype that you create for your product, although in some
instances, your production version will be a digital mock-up of either a physical or a digital
product. Once you're at this stage, your product begins to take shape.

A prototype is one final version of your product that you can use to affirm your usage
assumptions, demonstrate investors, and use for marketing reasons.

Tips for Prototyping

Ideally, you are actively involved in the creation of a prototype, but in certain situations, the
equipment or resources needed to produce a physical prototype are not readily available and
you would therefore need to outsource the work. In that case, you need to create very detailed
technical requirements for the product.

Make it photogenic: while you might not have had designers working on the prototype yet, you
should strive to make the product as attractive and appealing as possible. It's the first concrete
result of an extensive process and it's the foundation of the next phase.

Let others test it: one of the aims of the prototype, of course, is to test it. Let others test it, too,
because they're not going to have all the fundamental information you've got. Spontaneous
reactions are incredibly detailed.

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Phase 5: Crowdfunding/ Market Testing

Crowdfunding is about far more than funding: it's about getting input from the consumer before
the product is ready to sell. It can be an incredibly rich experience because it places the product
in a real market position and helps you to connect with your first consumer circle.

At this point, the product isn't fully done, and you're still perfecting your sales pitch through a
crowdfunding exercise. Also, this is an opportunity to generate financial resources at a time
when you have spent the most and still have a way to go before selling on the market.

Through crowdfunding, you can benefit from the acceptance of real users to the first version of
your product and help you determine your positioning strategy. You might also be able to
generate purchase orders for a potential finished product and thus raise cash before the product
development period is completed.

Crowdfunding Tips:
In a crowdfunding project, you're going to have to race through all the steps of the product
development process as though you've already done it. Characterize the market, describe your
item, demonstrate the prototype, recommend a price for it, and create a wide range of potential
first-time users.

Keep pace: Crowdfunding projects have a time frame and a goal to achieve. You're going to
have to keep up.

Don't give up: whether or not you meet the financial goal of your crowdfunding project, don't
give up. The process is abundant in information and feedback and will be of great benefit for
your final launch.

Step 6: Design and production

Your prototype is prepared, and along with what you experienced from crowdfunding, you
should be able to write the technical requirements. Based on the type of product you have
produced; you may need to call on external developers to provide the specifications required for
the final product.

Tips for Design and Production:

The more comprehensive the specifications, the fewer surprises you'll have. At this point, you
may be outsourcing jobs to an external organization particularly if your product is physical
perhaps even in another nation. Project management will be key to success in the design and
manufacturing process.

Plan for the Unexpected: at this crucial stage, you are at the highest risk of the entire process.
A lot of factors are out of your grasp, and you need to prepare for the unexpected. Put in some
offers: When preparing a launch date, make sure you've built sufficient reserves for significant
delays.

Stage 7: Promotion & Distribution

Obtaining sales and marketing right for a new product is one of the toughest challenges in the
entire process. This is a peripheral step in product growth, but product launch can’t take place
without a go-to-market plan. Also, you will need a pricing strategy that takes into account the
uniqueness of the product in your marketing plan.

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Tips for Marketing and Distribution

In this stage, you will identify through which platforms you will attract potential customers, at
what price and with what economic model you are proposing your product, what the
conversion funnel looks like for it, and what sales strategies you will use. You can also describe
how it is to be distributed to the end-user.

Always Learn: in industry, you should always learn, but this is particularly true in the early
stages of product launch. Learn from the initial reviews, from the first sales, from the first ad
post. What's working and what isn't?

Be Agile: do not let your plans be too static. Constantly transfer your focus and resources to the
platforms where you get the traction.

ASSESSMENT Submission of outputs via Google Class is very much appreciated.)

TASK 1 Directions: Multiple Choice

Read the following statements carefully. Write the letter of your choice in the answer
sheet provided. (10 points)
1. If you are scanning your company's external environment looking for unmet needs and
wants, at what stage of product development are you working?
A. Opportunity identification
B. Product design
C. Testing
D. Market introduction
2. If you are sending out products to a small group of customers who will try and evaluate
the product for you, what type of test are you employing?
A. Test marketing
B. Geographic marketing
C. Product testing
D. Beta testing
3. What is Idea screening?
A. choosing the best idea
B. Market strategy
C. test marketing
D. develop ideas
4. After coming up with some ideas, it's time to create a ...
A. more ideas
B. prototypes
C. solutions
D. price
5. What do we have to know before developing or improving a product?
A. Level or repeat business and customer satisfaction
B. Target market and market places
C. Pricing
D. All of the above
6. When employees and staff gathered together to come up with the next big idea for
invention or innovation, this stage is known as ...
A. Concept Development
B. Idea Screening
C. Final Development
D. Brainstorming

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7. Normally, for product development, a company gets the information from ...
A. Secondary data and
B. primary
C. Go directly and ask their customers
D. All of the Above
8. Diana produced a new product for her company, she is looking for new opportunities
in the market, and finally found one, then she decided to sell her products in that store.
Diana is at the stage ...
A. Market Entry/ Product launch
B. Product design
C. Screening
D. Market strategy
9. Product development is always involved ...
A. Innovation or Invention
B. Decline
C. Market opportunities
D. None of the Above
10.What is the purpose of creating prototypes?
A. To show how the company wants to sell the product
B. Giving customers what is the product going to look like and make sure that
customers know what products are they selling.
C. They just made it for fun
D. To earn more money

TASK 2 ESSAY Answers must not be less than 10 sentences, and should be rephrased in
own words once taken from other sources. (10 points)

Directions: Read the quotes below and explain how it relates to what you have
learned. Unique interpretations are encouraged. Write your answer in the activity
sheet.
“Designing a product is designing a relationship”
-Steve Rogers-

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 PRINCIPLES OF MARKETING Second Semester /Quarter
2 / Week 8
Senior High School Department MR. FRANCIS S.A. GUTIERREZ
School Year 2021-2022
Name:
(Subject Teacher)
Date:
Grade: Section: LAS# S2Q2W8

Answer Sheet SCORE:__________

(Submission of outputs via Google Class is very much appreciated.)

TASK 1 (10 points)

Multiple Choice
1. 6.
2. 7.
3. 8.
4. 9.
5. 10.

TASK 2 ESSAY (10 points) Answers must not be less than 10 sentences, and should
be rephrased in own words once taken from other sources. If space below is not
sufficient, please use the back of this page.

PLEASE USE BALLPENS AND WRITE LEGIBLY. USE THE BACK OF THIS
PAGE