Product development is the process of generating new ideas and concepts to create new products for the existing market. Development might involve modifying current products or introducing new products.
Product development is part of the existing expansion strategy at the Ansoff Matrix. The others are:
- Market penetration – increase sales of existing products in existing markets, for example, by increasing advertising.
- Market development – looking for new markets for existing products, for example, selling them abroad.
- Diversification – developing new products for new markets.
And, in short, developing a product involves stages:
- Generating ideas
- Checking idea
- Designing a product
- Testing the product
- Launching products
In product development, essential factors are about functions, designs, features, prices, target markets, target sales, development costs, and production costs. The most important thing is your product must be flexible and keep pace with changes in customer needs.