Now a day it is very difficult for any company to carry on with the existing product so they are spending a lot of expenditure on development of new products. For developing a new product, a product passes through eight stages and they are discussed below:
Stage 1. Idea generation:- the first stage of product development process is to generate the idea regarding new product development as the existing product becomes obsolete with the time and technology. Idea generation can be done through research of the market sources like consumer liking, disliking, competitor policy etc.
Stage 2. Idea screening:– at the second stage of product development process, in case the company having number of ideas then there is the need to accept the good idea and reject the bad one. As if the company accepts the wrong idea then it results into lot of loss of money, technology, time and energy. So it is necessary to reject the bad idea as soon as possible.
Stage 3.Concept development:– after idea screening the next stage is of concept development. For eg. In case the company is producing a soup which has high nutritional value then the question arises either to introduce it as a tasty soup or as a rich nutritional soup. Then the most suitable concept is selected.
Stage 4.Market strategy development:– this is the stage where the marketer decide what kind of marketing strategy to be used for the product either to use mass marketing or to launch the product in a particular area.
Stage 5.Business analysis:- at this stage the marketer decide whether they will be able to achieve expected sale or profit? If the answer to the question is yes then the concept of product move to product development stage.
Stage 6.Product development:– if the concept of product move to product development stage then product development starts. Here the research and development department develop a physical product which is put under functional and consumer test. Functional tests are done in the laboratory and consumer tests are done by bringing consumers in the laboratory.
Stage 7.Test marketing:- after the above stage the product is ready to be launched in the market with a proper brand name and packaging. Test marketing is done to find out how big the market is.
Stage 8. Commercialization:- the last stage of product development process is the commercialization of the product. While launching the product the marketer must have answers to the following questions:
i) Why to launch the product?
ii) When to launch the product?
iii) Where to launch the product?
iv) For whom the product to be launched?
Thus, all these are the product development decision process.