Irrespective of the fact that you may be a novice product developer or an expert in this field, there will always be new stuff that requires learning and is worth checking out. Does the way you manage your firm’s product-development health harm your firm’s health?
In recent business, like startup app development, new product development shelters the whole procedure of taking a new creation to market, reintroducing an already existing application or introducing an application in a new market. A vital characteristic of new product development is the product design, end to end with numerous business deliberations. New product development (NPD) is an integral slice of the product design cake. This development doesn’t close pending the product life cycle is finished either successfully or not. User feedback can concurrently be taken and kept to enable iteration on new versions by enhancing or increasing new features.
So important to know that It’s quite tricky to manage. Every single product introduced into the market has a life cycle. Some cycles have a positive outcome, others don’t. The various stages a product can cycle through are the development stage, Introduction stage, Growth stage, Maturity stage and Decline stage.
The Development Stage
This stage is the first and one of the most important stages of all in the product development life cycle. This stage is not only focused on building the product, it also consists of carrying out the discovery work needed to study, test and validate assumptions. The primary attention for research at this stage is benchmarking, market research and competitor analysis. These primary attentions will aid ideas of the possible development for the product, and sustain building a business case to authenticate the product.
Always make use of customer reviews and create models to fetch responses from possible clients and present clients. Response gotten from clients after testing the products is very important to help you and your team identify your customer difficulties and user requirements.
You must always define what would be the first release or an MVP of the product with your team and take a while building it, testing with possible clients along the way. As soon as the development of the new creation is complete it is ready for the next stage of this life cycle which is the introduction stage.
The Introduction Stage
Proper public awareness is very necessary to the growth of any product getting into the market. In this stage, the product is initially promoted/introduced in the market. If individuals have no idea of your product, how will they know? If individuals don’t know about your product how will they know to go out and get it? Here are two diverse approaches you can use to acquaint your product to clients.
You can use a penetration strategy or a skimming strategy, and both approaches are fixed on how you price your product.
Pricing strategy one is the penetration strategy. In this instance, you start with a very low price at the launch of the product then you gradually increase them. This strategy is pretty good to make use of if there are many competitors in the market who control a huge percentage of the market. Making profits isn’t a major worry under this strategy. The one and utmost significant objective are to get your product known, and then profits can be focused on later on in time.
Pricing strategy two is the skimming strategy. This particular strategy involves setting the prices of products at a very high rate initially and then slowly reducing them over time. This strategy is very much success if it’s a case of fewer competitors for your product in the market. Initial profits are usually very high in this strategy but there is a great deal of risk because if the possible clients don’t want to pay high prices you may lose out in the competitor’s race.
The Growth Stage
This stage is the stage where the market stake of your product begins to grow. In most cases, at this stage, a huge sum of money is invested in sales efforts and marketing. You need to concentrate your publicity campaigns on your target clients and already existing clients and sell the benefits of purchasing your products to the clients. In the market, there are numerous diverse available routes you can take to promote your product and what you choose will be contingent on your product, industry and advertising budget. If you find yourself in a business to business (B2B) market, your marketing and sales strategy are likely to be very different to a business with (B2C) market. When targeting to stretch out to B2B consumers, using specialized tools/platforms like LinkedIn would be very much preferable. Brochures, sales decks and promotional tools can be used when furthermore we look into the B2B tools that can be used to explain and to sell your products. Other advertising methods can be used like radio, newspapers, magazines and TV ads. Social media platforms such as YouTube, Facebook, Instagram and Twitter can be used to make available targeted adverts. Other digital media options available are new websites or blogs to promote your products. The above-mentioned more traditional options are likely to be more costly than the digital ones. The finest and low-priced means used for your product to be publicized is over word-of-mouth, as endorsed by your clients; this can only be done when your client’s trust and likes your product. This is proven to be true for both B2B and B2C products.
Once you are effective with your publicizing and marketing tactics then you will see a rise in sales and in the number of users that will patronize you. After a period of an incessant increase in sales, sooner or later your share of the market will stabilise. Once you get to this point you will reach the Maturity stage of the product.
The Maturity Stage
The Maturity stage is the fourth stage in the Product Life Cycle. When your product finishes the Introduction and Growth stages at that moment it is to be expected to devote a great deal of time in the Maturity stage. Done with the Growth stage that had a high-pitched rise in sales and client growth, throughout the Maturity stage your market stake will progressively begin to stabilise.
As soon as sales begin to stabilise you will need to move a few steps backwards to the development stage. It comprises analysing your present product and sales rating, discovering what can be upgraded, and what new chances possibly will be offered. It permits you to concentrate on origination, discovering ways to present new attributes to the product, care for new market sections, better still enlarge into the new markets. Differentiating your product in the market and innovating in order to help your company stay competitive is a major key in surviving the maturity phase. If you do not start over the product life cycle at this point, you are more than expected to reach the decline stage.
The Decline Stage
This is the last stage. In this stage, sales of your product start to decrease. Two cases can cause this, either every person who wants it has bought your product or new, more innovative products have been created that substitute yours in the markets. To stay in the game, and retain your market share, there is a need to reevaluate your current product and adjust or iterate its characteristics. If at all possible, amid the maturity and decline stage you should restart the product life cycle, to enable the consistent success of your business. It is called product extension.