PRODUCT

DEVELOPMENT
ENTREP
 OBJECTIVES:
• Connection to 4Ps/ 7ps
• Product
• Product Development Process

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PRODUCT DEVELOPMET

After we have
• Come up with a conceptual product
idea
• Profiled our target market
(customer) and
• Performed a Competitive analysis
(competition)

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PRODUCT IN THE 4PS

Product
• A product is a good,
service, or idea consisting
a bundle of tangible and
intangible attributes that
satisfies consumers and is
received in exchange for
money or some other unit
of value.

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PRODUCT
PLANNING/DEVELOPMENT

• Refers to the systematic

decision making related
to all aspects of the
development and
management of a firms
products

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“WHY DON’T I CREATE AND
SELL THAT PRODUCT?”
• “New” products are
created as the result of
and idea or perceived
“gap” in the current world
• It usually arises from a
need or want that can’t be
immediately filled.

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 Click icon to add picture

In order for a new product

idea to succeed, it MUST be
or have
• Desirable attributes for their
target market
• Be unique

I the new product isn’t, it is

doomed to failed.

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• When a new idea is
generated, the next stage is
to do some research
Focusing on this questions:

“Can we produce it?”

“Can we sell it?”

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CREATING A PROTOTYPE OF THE
PRODUCT OR SERVICES

Prototype is a preliminary model or

sample of a new product or service
that is created to test a product
concept or service process.

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1. It enables you to test and refine the functionality of your
design. Sure, your idea works perfectly in theory. It's not
until you start physically creating it that you'll encounter
flaws in your thinking. That's why another great reason to
develop a prototype is to test the functionality of your idea.
You'll never know the design issues and challenges until you
begin actually taking your idea from theory to reality.

2. It makes it possible to test the performance of various

materials. For example, your core may be set on using metal--
until you test it and realize that, say, plastic performs better at a
lower cost for your particular application. The prototype stage
will help you determine the best materials.

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3. It'll help you describe your product more effectively with
your team, including your attorney, packaging or marketing
expert, engineers and potential business partners.

4. It will encourage others to take you more

seriously. When you arrive with a prototype in hand to meet
any professional--from your own attorney to a potential
licensing company--you separate yourself from the dozens of
others who've approached them with only vague ideas in mind.
Instead, you'll be viewed as a professional with a purpose, as
opposed to just an inventor with a potentially good idea.

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TESTING THE PROTOTYPE
All the efforts in the creation of a
prototype will be put to waste if is not
to be tested. Testing prototypes will
uncover final problems that need to be
fixed before commercialization.

There are testing methods can be used

by the entrepreneur to ensure product
function maximization

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TESTING THE PROTOTYPE
1. Focus group – as discuss on previously having a
large respondents is costly, now in product testing
an entrepreneur will only select some people to
test their product to detect some errors up to its
design or aesthetics.

2. Legality and Ethical – prior to the release of the

product, an entrepreneur should ensure it does not
violate any regulations and law pertaining to the
product. Licensing, Patent, Government permits
(BFAD for food and drug products, product is not
tested to animals) should be secured.

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TESTING THE PROTOTYPE
3. Safety – an entrepreneur must ensure the product is
safety to use and it is not hazardous to people.
Electronics have risk of circuit shorts and should be
identify if it is tolerable. Human consumption such as
food up to cosmetics should not also bring harm.

4. Product costing – the entrepreneur should examine

every stage of creation process to know if it will match
the target cost for every product produce. Remember
entrepreneur are for profit maximization.

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TESTING THE PROTOTYPE

5. Component test – each component of product or service

must be test independently. Electronic devices have
different components to function as a whole, errors and
failures should be detected to reduce the risk of product
malfunction. Cosmetics have also ingredients to produce,
these following should also be tested if they are safe to
combine.

6. Competitors’ product/service test – as we have talked in

marketing research, entrepreneur can benchmark practices
that can be applied to have better new product
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Testing the product prototype is mandatory to ensure the product or
service will not fail customers and delivers it purposes. Customer
satisfaction will be achieved and will lead to loyalty and retention. It
will also reduce risk of product failures and product cost.

Validation of Market Acceptability

After the test this two questions will arise:

1. Will the primary target like the product or service?

2. Will the primary target buy the product or service
when it is already in the market?

If any of the two questions will not satisfy the

entrepreneur’s point of view, it can always go back to the
testing and research.

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FLORA@CONTOSO.COM

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