Basics Introduction to Product Development and Management Businesses can generate revenue from selling more of the current products to more of the current customers (customer maximization), more of the current products to new customers (customer development), new products to current customers (product development), or new products to new customers (diversification).
Product Managers — How Do You Measure Their Success? To Broaden Your Perspective on Product Development and Management Many of the activities in product development are also activities in the overall process of marketing. Basics of Marketing (from idea to evaluating to developing to producing) Life Cycle Planning (everything has a life cycle, including products) Broaden Your Perspective Even More?( Or If You Need an Investor or Funder) If the reader is highly motivated at this point, then he or she might scan the information about the basics of business planning. Business planning is usually conducted when starting a new organization or a new major venture, for example, new product, service or program. Essentially, a business plan is a combination of a marketing plan, strategic plan, operational/management plan and a financial plan. Funders or investors usually require a business plan. Far more important than the plan document, is the planning process itself. Basics of Business Planning Approaches to Developing Products and Services There are five different approaches that people use to develop a product or service.
The following article provides an overview of each of the methods. Additional articles provide additional perspectives. Approaches to Developing Products and Services How to Develop a Prototype Could Fewer Products Lead to More Profits? Product Launch 101 — 7 Things A Great Launch Can’t Do Product Launch 101: Creating A Product That Also see Intellectual Discipline in Product Development Idea for New Product or Service Sources of Ideas At this stage, someone has an idea for a new product or service. Ideas can come from many sources, for example
1. Complaints from current customers (see Customer Service and Customer Satisfaction)
2. Requests for Proposals from large businesses, government agencies, etc.
3. Modifications to current products (see Innovation)
4. Suggestions from employees, customers, suppliers,
etc. (see Creative Thinking) Also see How to Find a Product to Market (short, reflective piece on developing an idea) Protecting Your Ideas It’s likely that someone else will think your idea is a good one, too! Therefore, it’s important to protect your idea as much as possible, for example, by getting copyrights, trademarks or patents. See U.S. Intellectual Property Law You may want to “package” your product with others, or sell your new product as a set of products. The following link might help you in this consideration. Naming and Branding Intellectual Property You might also want to minimize the chance of an employee taking the idea and starting their own business. See Non-Compete Agreements Are You Really Ready for Entrepreneurship? It’s one thing to have a good idea for a new product or service, but it’s another thing to actually develop and provide it — that’s the essence of entrepreneurship.
The following link is to a resource that will guide you through complete consideration of whether you’re really ready for entrepreneurship or not. Entrepreneurs — Are You Really Ready to Start a New Organization or Product? Are You Planning a New Business Around Your Idea? If you are planning to start a new for-profit business or nonprofit business around your idea for a new product or service, then you will benefit from reading information in the topics Starting a For-Profit Business or Starting a Nonprofit Organization. Note that information in these two topics will guide you through assessing the feasibility of your new business — information in the rest of this topic about product management will include assessing the feasibility of developing a new product. It’s likely that if you are starting a new business, you will eventually need information in the rest of this topic about product development. Product Verification and Funding — Can Your Idea Become a Viable Product/Service? You Need More than a Good Idea Just because it seems like a great idea doesn’t mean that it can become a product. A viable product needs to be profitable (or, in the case of a nonprofit, at least sustainable), including being producible and marketable. Also, the product should be related to the purpose, or mission, of your business.
Businesses can go bankrupt by trying to be too many things to too many customers, rather than doing a few things very well. If You Need an Investor or Funder for Your Idea For-profits that need investment money will benefit from the following link. Fundraising (For-Profit) Nonprofits that need funding will benefit from the following link. Fundraising (Nonprofit) As noted above, you very well may need a business plan to convince the investor or funder that your idea is viable to become or product or service. See Basics of Business Planning Verifying that Your Idea Can Become a Good Product or Service At this point, you will benefit from understanding the basics of marketing, particularly how to conduct market research and a competitive analysis. If your idea still seems like a good one, then it’s important to know how you will position and identify your new product to the market.
You’ll certainly want to know how much you might charge for it (that is, its price to the customer). The following links will guide you through these considerations. Marketing Research (is there a need for your new product? by whom? how do they want it?) Competitive Analysis (who are your competitors? what are they selling? can you compete?) Pricing (how to come up with a price, based on development costs, etc.) When Is The Right Time To Create A Product? What Is Your Product Saying to Consumers? If you plan to promote, sell and/or distribute products over the Internet, you’ll want to review information in the topic E-Commerce.