Stages of Stages of Product Product

DevelopmentDevelopment

1. Idea Generation1. Idea Generation • Use Research to come up with an Idea• Product Mapping and Market Potential can be

used

2. Idea screening2. Idea screening • Look at what failed in the past, improve or make

brand new

3. 3. Concept Concept DevelopmentDevelopment

• Designing prototypes• Conduct more research

4. 4. Market StrategyMarket Strategy• Establish Primary and Secondary Market (Using

Demographics, etc)• Develop Marketing Strategy and Marketing Plan

5. 5. Feasibility StudyFeasibility Study• Calculate the costs of advertising, promotion,

distribution, transportation, storage, packaging and all other expenses

• Product must be one that the company can make and sell, that consumers want, and at a price they can pay, and at a profit for the company

6. 6. Product DesignProduct Design• Design the product to meet Primary Market’s

needs• What will your customers want

7. 7. Test MarketingTest Marketing • Company will give a limited amount of the new

product for people to try• The company will then have these people

complete surveys, etc

8. 8. Market EntryMarket Entry• Product enters the Product Life Cycle

SPANX – footless SPANX – footless pantyhosepantyhose

Stage How well did she perform this stage?

1 No initial research – her own idea, through her own experience

2 Research traditional pantyhose – associated problems

3 Visited knitting mills and Georgia Tech Univ – no prototype

4 Primary market – women/25-55/oprah watchers

5 Not done

6 Knew what customers wantedChose a memorable name

7 Personal in-store demos

8 Oprah Appearance – caused $30,000 in sales