Product planning is a method of identifying and developing new products. It serves as the basis in deciding about the price, distribution and marketing of the finished good. This method involves various phases. These phases include the input collection, refining ideas, approving and designing projects, improving market requirements and product development.
Both novice and expert businessmen should know the process of product planning. If you don’t know its accurate procedures, take the following paragraphs as your guide:
Step 1: Idea Conception
Every product planning starts with an excellent idea. To collect new ideas, financial experts, company marketers and engineers hold brainstorming sessions.
This can be an effective way of deciding on the exact product suited for their company lines. Employees of the company often work out product concepts to answer the problem of consumers. The former also analyze how to meet the needs and demands of the latter.
Step 2: Concept Statement
Most product marketers use input gathered from their previous session. Every detail will serves as their draft in creating a concept statement. During this step, companies need to recognize the product.
It means that they need to examine its special features, dimensions or styles. Distribution and product pricing are also classified under marketing schemes. Before tightening their concept statement, most companies create distinct product versions. This strategy allows businessmen to know what will fit to the needs of their customers. It also paves the way to the success of the product.
Step 3: Focus Groups
In presenting the product idea to multiple customers, focus group is often observed. During this process, managers and other experts analyze how the consumers react to the given product. They do this through interviewing with the customer or distributing a questionnaire from one customer to another. For a successful product planning, most companies use the input to twist the concepts of their finished goods.
Step 4: Marketing Research Surveys
Market research surveys are effective in quantifying whether the consumers have positive or negative feedback about the product. To ensure that the result is valid, companies employ hundreds of surveys. Some prefer to have a marketing research survey through phone, internet or mail.
Step 5: Product Development
Just like other companies, you have to start producing on a small scale. Though the survey proves favorable, it is best to make the right move. Since this is the start of marketing your product, you should first observe how it reacts in the market. This can help in avoiding high production costs in case the product fails.
With a simple product planning process, every business owner prefers to practice this before they make any action. The main question is, what is the significance of product planning? For further details about this topic, here they are:
• Get the input of every staff – Since in product planning involves the collection of ideas of different employees, everyone is obliged to share their opinion.
This method allows you to analyze and decide on the best idea for your business production. Company members like developers, customer support teams, sales teams, customers, shareholders and management. All gathered ideas from these members are essential for business improvement.
• Learn how to refine and evaluate ideas – With accurate planning, it would be easy for you to discuss the pros and cons of your output. You can also easily acknowledge all ideas and evaluate them. After evaluating, deciding on the best product suited to your target market will be finalized.
• Guide to Analyze the Market – During product planning, you need to analyze the market. In that way, you will be equipped with knowledge about the customers’ desires and needs. While doing an analysis, you have to pay attention to the identical products. Through knowing the features of the products, it would be easy for you to create remarkable products.
• Effective time line – With this planning scheme, you can create a time line for the cycle of your latest product. This time line is very essential to provide you an exact launching schedule. Once you have a fixed launch date, you can finalize different things prior to the big event.
A successful product planning relies on your skills and knowledge. It also depends on the ability of your company teams or groups. With accurate planning, you will have assurance that your latest products will be on top of the market.
For novice businessmen who are not aware on the accurate strategies of product planning, you should not make any decision. You can seek help from your business partners or trusted staff. You can also ask assistance from an expert to learn how to make your own effective and new product.
Once your products meet the qualifications and demands of the customers, expect that they will generate more sales. As a result, you can decide whether you are going to produce more supplies or not.