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CEO Online Magazine (Ezine):
COO & OperationsProduct Development
by Jason GluckmanProduct development involves several important stages like generating ideas, idea screening, concept testing, business analysis and market analysis, actual development of the product, test marketing and commercialization. Each of these stages involves considerable study and analysis; and at each stage, a management decision is called for before proceeding to the next stage. New ideas may come from customers, dealers, and in-company sources or from research organizations. Consumer's problems are the most fertile ground for the generation of new ideas. New ideas can also come from market research studies. Research studies on consumers, products, etc., will reveal market gaps by comparing the existing supply of products with the ideal product conceptions of consumers. But all market gaps cannot lead to commercially viable products. Only the promising ideas will be chosen for framing new product concepts. Normally, a new product oriented organization will have several new product ideas. The problem lies in identifying which ones are promising. In the idea screening stage, expert product evaluation committees rigorously screen various product ideas. When a new product idea passes the initial screening, it is subjected to concept testing. Here, the product concept itself is tested to see whether the prospective consumers understand the product idea, and whether they are receptive to it. Business analysis and market share analysis is crucial in product development because several vital decisions regarding the project are made based on the analysis done at this stage. This stage will decide whether from a financial and marketing point of view, the project is worth further processing. Investment and profitability analyzes will give the overall impact on the corporation's financial position with or without the new product. New Product DevelopmentNew product development is one of the most important components of product policy and product management. Product lines and products are appraise and are positioned effectively. Brand decisions are taken wisely. For a higher level of growth, a firm has to look beyond its existing products. A progressive firm has to consider new product development as a cardinal element of its product policy. Innovation is the essence of all growth. This is especially true in marketing. In an age of technological advancements, change is a natural outcome -- change in food habits, change in expectations and requirements. Any business has to be vigilant to these changes taking place in its environment. People always seek better products, greater convenience, newer fashion and more value for money. A business firm has to respond to these dynamic requirements of its clientele and these responses take the shape of new products and new services. Through such a response, the firm reaps a good deal of benefits. New products become necessary from the profit angle too. Products that are already established often have their limitations in enhancing the profit level of the firm. Profits from products decline as they reach the maturity stage of their life cycle. Thus, it is necessary for business firms to bring in new products to replace old, declining and losing products. New products become part and parcel of the growth requirements of the firm and in many cases, new profits come to the firm only through new products. New products can be broadly classified into two groups: new products arising out of technological innovations and new products arising out of marketing oriented modifications. The first group involves innovations leading to intrinsically new products with a new functional utility behind them. The second group involves mere marketing oriented innovations in existing products; it gives rise to new versions of the existing products.
Product Design And DevelopmentProduct design begins with identifying the characteristics and expectations of the target market based on the product. The key benefits customers look for in a product must be identified. Multifunction products can give product benefits expected by many types of customers. On the other hand, a customer may suspect that the product promises too much, and that it will not live up to its promises. A multipurpose product may also appear too complex and sophisticated to the average buyer. A product has to complement human effort rather than overwhelm. Building user friendliness into products has become a very important factor in product design, and a whole discipline of study called ergonomics has evolved. Aspects like quality, styling, performance and materials affect a product image. It is better to give desired quality at acceptable prices than to give the highest possible quality at unreachable prices. Product performance output and costs of product use is another important feature that should be part of product design. The materials used for making a product have to be selected so as to be safe, free from health hazards, economical and appealing. Product obsolescence refers to the life of a product or the duration it can be used. This is another very important aspect in the product design and development. Functional obsolescence occurs when a new technological finding makes an existing product out of date. The manufacturer controls planned obsolescence. Postponed obsolescence is when a marketer decides to withhold product improvements until present inventories are sold out or demand falls sharply. Product Development Processes by Jason GluckmanDeciding the product policy is the main task in product development processes. What products should the company make? Where exactly are these products to be offered? What market, or market segment should it be offered in? What should be the relationship among the various members of a product line? What should be the width of the product mix? How many different product lines can the company accommodate? How should the products be positioned in the market? What should be the brand policy? Should there be individual brands, family brands and/or multiple brands? Can a product be left to middleman's branding? Answers to these questions will constitute the product policy of a firm. A growing business has to undertake a constant appraisal of its existing product line. No product lasts forever, and no product lines are perfect forever. Changes in the business environment, changes in customer tastes and preferences and the extent of competition all exercise some pressure on the product policy of a firm. A product might have lost its marketable image, be facing the threat of functional obsolescence, lost its profitability, be poor in quality or simply served its purpose and is on the decline.
The techniques employed by firms to render their product or brand distinct and different from the competing brands, is termed product differentiation. Differentiation can be based on product, channel and promotion. Product, however, lends the maximum scope for differentiation. The aim of a product differentiation strategy is to endow the company's product with certain real differences compared with other competing brands. And the main requirement is that the consumers must perceive the product as different in some respect. About the AuthorProduct Development provides detailed information on Product Development, New Product Development, Product Design And Development, Product Development Processes and more. Product Development is affliated with Enterprise Risk Management.
InnovationsDo You Have Patent Rights For Sale? by Steve SinnerBefore you do anything protect you invention, do a world wide patent search and build a prototype that works. Draw and describe your invention and have it notarized. Send a copy to the Mail Stop DD program at the patent office. Then file the utility patent. The hard reality to face is your Invention must be proven before any company is going to buy your Patent Rights. You must get the product tooled and packaged and selling in stores and prove the public wants your product. If you have a product that the public will buy, then what Grand Dad always said "the proof is in the pudding" comes into play? You need to figure out what it will cost to get the product manufactured and start a corporation to get it to market. Figure out how many shares for the corporation you wish to keep and sell off the remaining shares to everyone and anyone, friends, family, business associates etc. Price the shares low enough for poor people to buy into your company. If you really have something, many of you friends and family and business associates will invest to get your product to market. If you don't have something the public will buy, chance is no one will invest. Now if you are unable to go the way just mentioned, you should consider one of the most successful methods used. Offer you invention to a small company. Ask for no money upfront and a royalty after it proves itself. After 20 years of inventing I have learned that only one in a million inventions are accepted by major manufactures before they are proven to sell on the market. If you want a major manufacture to come after your invention you must pay your dues. You must take it all the way to market and it must prove the public wants it. Then and only then will you succeed in selling your patent rights for a huge amount of money. So if you are tired of getting nowhere with your invention, try one of the proven methods above.
Inventioneurs LLC just made a deal with a small company to test market our Plug Snug-it if it sells and proves itself they will license it giving us a royalty, and if a major manufacture buys the Intellectual patent rights then Inventioneurs LLC will receive 95% of the profit from the sell of the patent, and Sinner Enterprises Inc will receive 30%. About the Author Sinner Enterprises Inc Is a corp. that starts new companies to put their new Invention on the market.
We are working on well over a 1000 Inventions at this time. This page is sponsored by IIM Executive Education Programs
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