Bangladesh Islamic University

Project & NGO Management

Course Code: MGT 611

Assignment on
Product development process of a company
Submitted to: Mahanaz Hoque (Lecturer)

Bangladesh Islamic University(BIU)

Submitted by: Fahmida Ahmed

Id: MBAFF43201608

Submission Date: 8 june 2020

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 Content

Sl. No Topic Page No

1 Development Process : 3

2 Characteristics of Successful Product Development : 3

Importance of Product Development

3  New Value for Customers : 3-4

 Improved Society
 Continued Existence and Growth of the Company

4 Table : 5

Product Development Stage

 Idea Generation
 Idea Screening:
5  Concept Testing : 6-77
 Business Analysis
 Product Development
 Test Marketing
 Commercialization
 Review of Market Performance

6 Conclusion : 7

7 Refferences : 7

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Development Process:
Product development is the process of bringing a new innovation to consumers from concept to
testing through distribution. New product development looks at improving existing products to
invigorate an existing market or create new products that the market seeks

Characteristics of Successful Product Development

A product development is successful if its products not only fulfills the needs and the
requirements of customers, but also generates profits to its shareholders, and creates value to its
stakeholder at large.

In other words, the two main characteristics of a product development project are historically its

 Quality and
 Profitability,

Where "Quality" represents how well the product satisfies the customer needs, and "Profitability"
represents how much profit it can generate with limitation of budget, and schedule.

The instruments developed to measure the performance of a product development, therefore,

were tailored to meet those two characteristics. The widely used measurements are drawn from
three perspectives: consumer-based, financial and technical or process-based success. *
Consumer-based: Customer loyalty, and market share * Financial-based: Cost & Expense. (Can
this organization make money?) * Technical & Process-based: TTM (Time-to-Market), quality

Importance of Product Development:

Product development is the life-blood of companies and societies. The product could be a
physical product such as an automobile, Smartphone, or Coffee maker. It could also be services
such as new IT solution, new manufacturing process, or a new real estate marketing concept.

All successful product development actions provide the following:

 New value for customers
 Improved society
 Continued existence of the company

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 New Value for Customers

The first and most important reason for any new development is to provide new value to the
customer. Without this, there is no reason for them to trade their money for the new device.
However, if the product or service offers overwhelming value, then customers will flock to it.
This new and increasing value is what keeps companies growing. If there is no new value to
offer customers, the firm wilts and eventually dies. If the value offered is not increasing, then the
company is losing ground in the market as its competitors increase their value in the market.

 Improved Society
Many new products are simply an incremental improvement over the previous version with
only some new features or slight faster performance. These products may sustain the company
by offering enough new value to generate additional revenue, but they are hardly a boon to
society.
There are certain instances where new products will improve society beyond just the immediate
gratification of the consumer. For example development of “Micro encapsule” by “Euro
Pharma” make more patient friendly endoscopy which is use for endoscopy with a minimum
effort just swallow a capsule which contain camera to take picture of inert part of stomach,
intestine and colon whereas conventional endoscopy are done by using pipe which is push
through esophagus caused serious pain.

 Continued Existence and Growth of the Company

New products and services are the lifeblood of any company. Without them, the firm
withers on the vine and either dies or is absorbed by another firm. Society is well-served by the
continuance of these companies from the employment of the individuals who work there (who
are also consumers), and the support for society at-large in the form of taxation and charitable
giving.

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Product Development Stage
The eight stages or steps involved in the development of a new product:

• Idea Generation
Stage-1

• Idea Screening
Stage-2

• Concept Testing
Stage-3

• Business Analysis
Stage-4

• Product Development
Stage-5

• Test Marketing
Stage-6

• Commercialisation
Stage-7

Stage-8
• Review of Market Performance

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Idea Generation:
1st step of development is idea generation because development start from idea generation so to
develop any product or services company first collects idea from different source.

Idea Screening:
Idea is most important to develop any product but idea should be appropriate in accordance with
time and targeted market that’s why idea screening is important and which is done after
collecting all feasible idea.

Concept Testing:
After screening idea conceptual test is performed whether the idea is feasible or not if the idea is
feasible for the organization then the idea is forwarded for business analysis.

Business Analysis:
A new idea of product development may increase the social life style but all times it may not be
suitable for business. That means all new product is not appropriate for the organization. So to
make clear that the product is suitable for the organization a business analysis is performed with
considering market size, customer needs and economic conditions.

Product Development:
After passing business analysis selected idea is converted to desired product which has many
steps like; design, size, color, pack size, etc.

Test Marketing:
Before going to mass production test marketing is done to recheck the product quality and
demand among the customers. Generally test marketing is carrying out among targeted customer
by giving free and takes feedback from them whether the product is appropriate or not.

Commercialization:
Successfully completing test marketing commercial production start which means an idea
becomes a product. Now this product is marketed through the entire channel and distributed to
the customers.

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Review of Market Performance:
Surveillance market performance is doing to maintain brand value and competing rival activities
sometimes process innovation is doing to compete the rival in accordance with the review of
market performance.

Conclusion:
Innovation in both product and process is necessary for the development of the organization. To
sustain in the market and competing the business rival product innovation is must because
customer always want new product and services if they get their desired product from their
choosing brand or company they will not switch to others but if the company fail to introduce
desired product in time then customer will switch to others company because now a day’s
information is open to all and customer can analysis which one is best for them so to retain the
present customer and attract new customer product innovation is must.

Refferences:

1. Class lecture
2. Services Marketing (Seventh Edition) by Valarie A. Zeithaml, Mary Jo Bitner
3. https://marketing-insider.eu/new-product-development-process/