Meaning of product development

Product development refers to the activity of researching consumer needs and developing products that meet customer needs.

Generally speaking, it is very dangerous to proceed with the development of new products and services based solely on the discretion of one person or the thoughts of the development department. What often happens is that the development department proceeds with development based on market research they have conducted themselves, but when the time comes to sell the product, the sales department decides that “this kind of product won’t sell” and is unable to obtain cooperation.

Product development process in marketing

In particular,

marketing

is not just market research, but refers to all activities that lead to delivering value to customers. Therefore, in product development in marketing, it is important to carry out a consistent process from market research, planning, development (investment), sales, and collection.

In other words, ideally, the planning department, development department, and sales department all participate and proceed with development according to the following process.

1. Environmental Analysis Before product development, you must thoroughly investigate and analyze the environment surrounding your company using
   
   the framework
   
   listed below.

These analyzes are not only for one product, but also to confirm your company’s position in the industry, and should be updated regularly.

1. Strategy planning

The following are also collectively referred to as

STP strategies

. From here, narrow down your specific customer profile.

Related materials:

1. Policy planning

We perform a 4P analysis (Product, Price, Place, and Promotion) and plan measures.

In product development, the final product plan (design, brand, packaging, quality, warranty, etc.) is decided at this stage.

Reference article

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