Product Development

A firm must have the cash to develop a new product, understand the change that is
constantly happening in the market. The product development system may well
determine not only the product success but the future of the company.

Product development teams are responsible for moving from market requirements to product success,
involving representatives from marketing, manufacturing, purchasing, quality assurance, and field
service personnel. Research suggests success is more likely in an open, highly participative environment
with potential contributors.

The following steps shows how to identify the relationship between customer

desires and the product that you will be creating.

1. Identify customer wants. (What do prospective customer want in this

product?)

2. Identify how the goods/service will satisfy customer. (Identify specific product

characteristics, features, or attributes and how they will satisfy customer.)

3. Relate customer wants to product hows.

4. Identify relationship between the firm’s hows.

5. Develop importance ratings. (Using the customer’s importance ratings)

6. Evaluate competing products. (How well do competing products meet

customers wants?)

7. Determine the desirable technical attributes, your performance, and

competitor’s performance against this attribute.