DEVELOPING A PRODUCT

Products and services are the lifeblood of all businesses.

Development of a product or service should be a continuing

process for one in the business because markets constantly
evolve and competitions get tough.

It needs considerable planning and organization. For this

reason, effective research in the markets is the key to
how one should start a plan to develop their product or
service.
 Concept of Product Development

Product development is a process that involves the

creation of a new product or the improvement of an
existing product in the market.

It may be in the form of goods or services or new technology

that will cater to the demand or provide solution to the needs
of a particular segment of the consuming public
 The objectives of product development can be varied, but
generally speaking, from a commercial standpoint, these
are:

1. to gain new market or create demand for a new product or

service;

2. to maintain hold of the market share by developing an

improved version of an existing product or service, thus,
providing more value because the existing one is nearly
becoming obsolete or losing its value and customer
acceptability;
3. to increase the profitability of the business by
adding a new product to the current product
portfolio;

4. to match or exceed competitors who are

coming up with a much efficient version of the
product similar to yours.
 Steps in Developing a Product

1. Generating an Idea-

This helps entrepreneurs develop ideas for a product that will

satisfy their requirements. Conducting market research could
also generate ideas about consumer behaviors and needs. Being
observant about people's way of life, buying habits, and
attitudes generate creative ideas that can be converted to a
business proposition.
2. Filtering or Screening Ideas
The process of screening all possible product ideas
generated is to trim down the list to come up with a few
that are worth pursuing in terms of their acceptability and
ability to provide real value for the target market.

It is a good idea to have a checklist of all criteria that can be

used to rate all product ideas to justify any decision to push
through the development and introduction of the chosen
product idea in the market.
3. Conceptualizing the Product Idea
A product concept is a detailed description of the product
idea and its features focusing on the benefits that consumers
can get from it. Additionally, quality and performance are the
key things that appeal to the target customers.
 4. Prototyping, Business Analysis, and
Marketing Strategy

This process will help the entrepreneur get feedback on

the customer's level of interest, level of cost, any
additional product refinement needed, meeting customer's
expectations and needs, the value and benefits it is
supposed to provide, and the quality and safety assurance
as well as the affordability
 5 . Commercialization and Launching

The last step will be to step up production to commercialize

the product: launch and sell in the target market.
This process requires a specific marketing plan to penetrate
your target market. It may involve your supply and
distribution plan, promotion, and advertising to boost your
sales
 Finding the Product Value

Product value is an assessment of the worth or cost of a product

being sold. Cost is an important component of the value of the
product. Cost is identifiable and is the sum total of the cost of
product development, administrative, production, and marketing
of the product. The added cost on the product represents the value
that is not easily identifiable. It is related to the benefits that the
product will provide and its other features, like quality or
durability, which adds further value to the product.
Product value is about satisfying the needs of the
customer, which revolves around the basic need for
food, shelter, health, love, personal expression, and
belonging.

Value is what spells success or failure for a business

enterprise. In a market where there is also stiff competition
for a similar product, it is always the most-valued product
that stands out.
 Innovation as an Entrepreneurial Activity
Economic development and growth of a business enterprise are
highly dependent on positive changes occurring in the business
environment. In reality, accumulation of knowledge and
advancement in technology have brought about improvement in
people's quality life. The creative and innovative spirit of people
brought this transformation in the way businesses operate today.
Being creative and innovative are two essential elements that are
inseparable from each other to be successful in business today.
Let us examine how creativity works for most people:

1. There is some measure of creativity in every person.

Successful entrepreneurs develop competencies in terms of
knowledge, skills, and motivation

2. Many creative people develop hobbies that they love

and enjoy. Creativity is borne mostly on what people
are interested in.
3. Focus on the concept of the idea and the
solution. By knowing the intended benefit and
value of the product, one can think of the many
ways to provide solution to the problem

4. Brainstorm with other people. Creative

ideas come with multiple minds being
better than one.
 Unique Selling Proposition

- Refers to the unique benefit exhibited by a company,

service, product or brand that enables it to stand out from
competitors.
- The unique selling proposition must be a feature that
highlights product benefits that are meaningful to
consumers.
- USP focuses on explicit claims of uniqueness involving
an objectively verifiable product attribute or benefit-in-use
 Developing a Unique Selling Proposition

1. Understand who your target market is .

2. Knowing who you are selling to and finding out the

reasons that they buy your product is an initial step in
developing a USP

3. List down all the things and feedback that make your
customers motivated to buy your products.
4. Having listed all your new USP, review each one and see
how you can provide more emphasis in bringing the right
message about your product. Adding visual presentation may
help bring more life to your USPS.

5. Talk to your customers and get feedback

as to which USP is more appealing and
effective.
6. Develop your marketing plans to
build your business around your
USP.

7. Review them regularly and appraise how

your USP performs in the market, comparing
them with your competitors and new
developments in the market
Some Helpful Tips in Product Development

1. Get ideas or opinions from your stakeholders

(staff, employees, or partners or in this case,
team members) with regard to your development
plan. This valuable contribution can provide you
some insights to improve your development
plan.
2. Sift the ideas from the workable to
nonworkable ones. Test on the workable ideas
and get rid of the nonworkable ones. This allows
you to save time, energy, and money.

3. Consult potential customers of your product

development plan. Their valuable inputs can help
you improve the product.
4. Set long-term goals for your product
development plan by considering its role and
its impact on the market and the
environment.

5. Set immediate and long-term goals by

citing the benefits your product can offer to
potential customers.
6. Develop a unique selling proposition that is
different and better than your competitors'
product.

7. Establish the right price for your product. This

is part of your development plan. Always keep
in mind if customers are willing and prepared to
pay for the price.