Learning Outcomes
There are probably as many varieties of new-product development systems as there are types of companies, but most of them share the same basic steps or stages—they are just executed in different ways. Below, we have divided the process into eight stages, grouped into three phases. Many of the activities are performed repeatedly throughout the process, but they become more concrete as the product idea is refined and additional data are gathered. For example, at each stage of the process, the product team is asking, “Is this a viable product concept?” but the answers change as the product is refined and more market perspectives can be added to the evaluation. Show
Stage 1: Generating New Product IdeasGenerating new product ideas is a creative task that requires a particular way of thinking. Coming up with ideas is easy, but generating good ideas is another story. Companies use a range of internal and external sources to identify new product ideas. A SWOT analysis might suggest strengths in existing products that could be the basis for new products or market opportunities. Research might identify market and customer trends. A competitive analysis might expose a hole in the company’s product portfolio. Customer focus groups or the sales team might identify unmet customer needs. Many amazing products are also the result of lucky mistakes—product experiments that don’t meet the intended goal but have an unintended and interesting application. For example, 3M scientist Dr. Spencer Silver invented Post-It Notes in a failed experiment to create a super-strong adhesive. The key to the idea generation stage is to explore possibilities, knowing that most will not result in products that go to market. Stage 2: Screening Product IdeasThe second stage of the product development process is idea screening. This is the first of many screening points. At this early stage much is not known about the product and its market opportunity. Still, product ideas that do not meet the organization’s overall objectives should be rejected at this stage. If a poor product idea is allowed to pass the screening stage, it wastes effort and money in later stages until it is abandoned. Even more serious is the possibility of screening out a worthwhile idea and missing a significant market opportunity. For this reason, this early screening stage allows many ideas to move forward that may not eventually go to market. At this early stage, product ideas may simply be screened through some sort of internal rating process. Employees might rate the product ideas according to a set of criteria, for example; those with low scores are dropped and only the highest ranked products move forward. Stage 3: Concept Development and TestingToday, it is increasingly common for companies to run some small concept test in a real marketing setting. The product concept is a synthesis or a description of a product idea that reflects the core element of the proposed product. Marketing tries to have the most accurate and detailed product concept possible in order to get accurate reactions from target buyers. Those reactions can then be used to inform the final product, the marketing mix, and the business analysis. New tools leveraging technology for product development are available that support the rapid development of prototypes which can be tested with potential buyers. When concept testing can include an actual product prototype, the early test results are much more reliable. Concept testing helps companies avoid investing in bad ideas and at the same time helps them catch and keep outstanding product ideas. Stage 4: Business Case AnalysisBefore companies make a significant investment in a product’s development, they need to be sure that it will bring a sufficient return. The company seeks to answer such questions as the following:
The marketing budget and costs are one element of the business analysis, but the full scope of the analysis includes all revenues, costs, and other business impacts of the product. Stage 5: Technical and Marketing DevelopmentA product that has passed the screening and business analysis stages is ready for technical and marketing development. Technical development processes vary greatly according to the type of product. For a product with a complex manufacturing process, there is a lab phase to create specifications and an equally complex phase to develop the manufacturing process. For a service offering, there may be new processes requiring new employee skills or the delivery of new equipment. These are only two of many possible examples, but in every case the company must define both what the product is and how it will be delivered to many buyers. While the technical development is under way, the marketing department is testing the early product with target customers to find the best possible marketing mix. Ideally, marketing uses product prototypes or early production models to understand and capture customer responses and to identify how best to present the product to the market. Through this process, product marketing must prepare a complete marketing plan—one that starts with a statement of objectives and ends with a coherent picture of product distribution, promotion, and pricing integrated into a plan of marketing action. Stage 6: Test Marketing and ValidationTest marketing is the final stage before commercialization; the objective is to test all the variables in the marketing plan including elements of the product. Test marketing represents an actual launching of the total marketing program, done on a limited basis. Initial product testing and test marketing are not the same. Product testing is totally initiated by the producer: he or she selects the sample of people, provides the consumer with the test product, and offers the consumer some sort of incentive to participate. Test marketing, on the other hand, is distinguished by the fact that the test group represents the full market, the consumer must make a purchase decision and pay for the product, and the test product must compete with the existing products in the actual marketing environment. For these and other reasons, a market test is an accurate simulation of the broader market and serves as a method for reducing risk. It should enhance the new product’s probability of success and allow for final adjustment in the marketing mix before the product is introduced on a large scale. Stage 7: LaunchFinally, the product arrives at the commercial launch stage. The marketing mix comes together to introduce the product to the market. This stage marks the beginning of the product life cycle. Stage 8: EvaluationThe launch does not in any way signal the end of the marketing role for the product. To the contrary, after launch the marketer finally has real market data about how the product performs in the wild, outside the test environment. These market data initiate a new cycle of idea generation about improvements and adjustments that can be made to all elements of the marketing mix. Contribute!Did you have an idea for improving this content? We’d love your input. Improve this pageLearn More The product development process is a six-stage plan that involves taking a product from initial concept to final market launch. This process helps break down tasks and organize cross-departmental collaboration. Find out how to implement a process of your own. Product development is both an exciting and difficult endeavor. From initial ideation to research and prototyping, no two product launches are the same. However, there’s a general process that can help you get started with the product development process. The product development process describes the six steps needed to take a product from initial concept to final market launch. This includes identifying a market need, researching the competition, ideating a solution, developing a product roadmap, and building a minimum viable product (MVP). The product development process has evolved in recent years and is now commonly used by dividing each step into six separate phases. This helps better organize the process and break individual deliverables into smaller tasks. Product development is the process of building a new product, from ideation all the way through launch. Product development begins with those initial brainstorming sessions, when you’re just discussing a budding idea. From there, the process is creative but strategic, and you may have seen it done in a million different ways. But without clear organization, it can be hard to mesh creativity and strategy effectively. Which is where the product development process comes in—a six step framework to help you standardize and define your work. Create a product development templateIs product development the same as product management?Though they sound almost identical, there's an important difference between product development and product management. Product development describes the process of building a product, where product management is the overseeing of that work. It's a slight difference, but an important distinction. A product manager, who often oversees a team that is in the product development process, will lead product management. Free product roadmap templateThe 6 stages of product developmentNot only does the product development process help simplify a launch, but it also encourages cross-team collaboration with teamwork and communication at the forefront of the process. Let’s dive into the product life cycle and define the six product phases. All of which can help you successfully launch your next product. The initial stage of the product development process begins by generating new product ideas. This is the product innovation stage, where you brainstorm product concepts based on customer needs, concept testing, and market research. It’s a good idea to consider the following factors when initiating a new product concept:
To validate a product concept, consider documenting ideas in the form of a business case. This will allow all team members to have a clear understanding of the initial product features and the objectives of the new product launch. 2. Product definitionOnce you’ve completed the business case and discussed your target market and product functionality, it’s time to define the product. This is also referred to as scoping or concept development, and focuses on refining the product strategy. During this stage, it’s important to define specifics including:
Once these ideas have been defined, it’s time to begin building your minimum viable product (MVP) with initial prototyping. 3. PrototypingDuring the prototyping stage, your team will intensively research and document the product by creating a more detailed business plan and constructing the product. These early-stage prototypes might be as simple as a drawing or a more complex computer render of the initial design. These prototypes help you identify areas of risk before you create the product. During the prototyping phase, you will work on specifics like:
Now it’s time to begin designing the product for market launch. Read: Stage Gate process: How to prevent project riskCreate a product development template4. Initial designDuring the initial design phase, project stakeholders work together to produce a mockup of the product based on the MVP prototype. The design should be created with the target audience in mind and complement the key functions of your product. A successful product design may take several iterations to get just right, and may involve communicating with distributors in order to source necessary materials. To produce the initial design, you will:
Once the design is approved and ready to be handed off, move onto the validation phase for final testing before launching the product. 5. Validation and testingTo go live with a new product, you first need to validate and test it. This ensures that every part of the product—from development to marketing—is working effectively before it’s released to the public. To ensure the quality of your product, complete the following:
Once your initial testing is complete, you’re ready to begin producing the final product concept and launch it to your customer base. 6. CommercializationNow it’s time to commercialize your concept, which involves launching your product and implementing it on your website. By now, you’ve finalized the design and quality tested your development and marketing strategy. You should feel confident in your final iteration and be ready to produce your final product. In this stage you should be working on:
Your final product is now launched. All that’s left is to measure success with the initial success metrics you landed on. Free product launch templateProduct development process examplesNow that you understand the six stages of the product life cycle, let’s look at real world examples of some of the most successful product development strategies of iconic startups to inspire your own. Example 1: How Figma expanded their product features
Their mission is to make design accessible to more people and help them bring their creativity to life. They’ve shown this by continuously adding new product features—like multiple flow capabilities, a brainstorming timer, and an interactive whiteboard—coordinating successful software releases, and building trust through transparency. Read our case study to learn how Figma uses Asana to manage development backlogs. Example 2: How Uber solved a market gap
Uber’s strategy began by solving a gap in the existing taxi industry: creating an easier ride-hailing process with simplified payment processing. But they didn’t stop there: they continued to innovate their product portfolio by developing ride tiers ranging from luxury to budget-friendly. While each situation varies slightly, with the right product strategy, you too can create an innovative portfolio. Who is part of the product development team?There are many stakeholders and various teams that assist with the product development process. The main leader is the product manager, who oversees all product tasks related to ideation, research, development, and product launch. Additional important stakeholders include:
In addition to these important roles, other teams that may be involved are finance, engineering, and any other related stakeholders. All of which can play a role in the process depending on the complexity of the concept. Read: Product manager vs. project manager: What’s the difference?The process that simplifies product developmentThe right product development process can help you streamline each step with organized tasks and team collaboration. The six stages outlined above will get your team through all steps of the process, from initial idea screening to the development phase. But you might need help along the way. Coordinate tasks and organize your product development process with Asana for product management. Asana can help get your products to market faster by tracking workload and simplifying planning. Create a product development template |