The New Offering Development Process
What is the new offering development process?
The current business environment is dynamic and competitive. Thus, businesses have to continuously update their products and services offerings to conform to new trends for businesses to remain competitive. The new offering development process is the cycle that new products and services undergo, from the idea generation as well as conceptualization to the market launch (1).
What are the 8 stages of new product development?
The steps a company chooses to follow depend on its size and available resources, among other things. Most processes include at least:
1. Idea Generation
This process is a creative task whose goal is to generate many worthy ideas for possible products or service offerings. The major part of this stage is to give significance to brainstorming sessions so that solving customer problems is given precedence (3). Companies can generally use a range of internal and external sources, including a SWOT Analysis, Competitor Analysis, and customer focus groups, to identify new offering ideas.
2. Idea Screening
This stage involves filtering through ideas in order to select those with the highest potential for success (3).
3. Concept Development and Testing
A product concept is a detailed idea stated in meaningful consumer terms (2). In this stage, a product idea is converted into several concepts, out of which one will be surely selected and placed against competitors to finalize marketing and positioning strategies. The new offering concepts are then tested with a target group, either symbolically or physically, to determine customer appeal and customer value.
4. Marketing Strategy Development
Once a concept has been developed and tested, the next step is to design an initial marketing strategy for the new product/service. It should include the target market, the planned value proposition, projected sales, planned process, distribution as well as marketing budget, among other parameters (2).
5. Business Analysis
The next step is to evaluate the business attractiveness of the new offering. The company needs to eventually analyse all revenues, costs, and other impacts of the new product on the company as a whole.
6. Product Development
Product development entails the actual design and manufacture of the product. Development commences with the manufacture of a prototype that facilitates market testing (1).
7. Test Marketing
The objective of this stage is to test all the variables in the marketing strategy and plan, together with the new offering’s element. Basically, test marketing is an accurate simulation of the broader market and serves as a method for reducing risk.
8. Commercialization
The marketing mix comes together to introduce the product as well as service to the market. Finally, this stage marks the beginning of the product life cycle.
Evaluation
After the launch, access to actual market data initiates a new cycle of idea generation about improvements coupled with adjustments to the offering.
Check the following reference articles to learn more about the new offering development process:
- Adams, D. (2019, January 29). Five Phases of the New Product Development Process. Small Business – Chron.Com. URL
- Claessens, B. M. (2015, June 30). The New Product Development Process (NPD) – 8 Steps. Marketing-Insider. URL
- Singh, S. (2021, February 19). What are the Seven Stages in the New Product Development Process? Insights – Web as well as Mobile Development Services and Solutions. URL
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