Product Development

Product
Development
By: Group
2
W h a t is Product
Development?
01
The creation of a new product from the existing one
to be sold by a business or enterprise to its
customers is known as Product Development. It
may include the alteration of an existing product or
its entire value, or the creation of an entirely new
product that satisfies a newly defined
customer's needs and/or wants,
the term Development refers collectively to the
entire process of distinguishing a market
opportunity, making a product to attract the
identified market/Some materials may include
testing, modifying and refining the product until
this will be ready for mass production. Any product
These are the basic questions you may ask yourself
when
you want to pursue product development/If you
find acceptable answers to these, then you are
ready to develop a product or render services:
1.For whom are the product/service aimed?
2. What benefit will the customers expect from it?
3.How will the product differ from the existing

brand? Or from their competitor?
02
The needs and wants of the people within the area should
also be taken into consideration. Everyone has his/her
own needs and wants. But due to people's
unsatisfaction, they have different concepts of needs
and wants. Needs in business are important things that
every individual does without in a society. These
include:
1.Basic commodities for consumption

2. Clothing and other personal belonging
3. Shelter, sanitation and health
4. Education
Basic needs are essential to every individual so he/she
may be able to live with dignity and pride in the 03
community he/she lives.
Needs and wants of people are
the basic indicators of the kind of
business that a seller may
engage into because they can
serve as the basis of your
success. Some other good points
that you might consider in business
undertakings are the people, aside
from their needs, wants, lifestyle,
culture and tradition, and social
04
orientation.
Concepts of Developing a
Product
The very critical stage in developing a product is

called Concept Development. Before the product
specifications, the needs of the target are defined,
market is identified
competitive andare reviewed. Then along
products
with the economic analysis, the product concept is
selected to come up with an outline of how a product
is being developed. The figure below shows the stages
of concept development of a product.
05
IDENTIFY
CUSTOMER
NEEDS
06
ESTABLISH SELECT A
GENERATE REFINE
TARGET
SPECIFICATIONS
PRODUCT PRODUCT SPECIFICATIONS
CONCEPTS CONCEPT
ANALYZE PLAN
PERFORM
COMPETITIVE REMAINING
ECONOMIC
PRODUCTS DEVELOPMENT
ANALYSIS
T h e p r o c e s s of product
development follows these steps:
A.Identifying Customer Needs - could be in the form of

interviews, survey forms, researches, focused group
discussions and observations of customer's needs and wants.
Information like, the product sales, taste, size, color, shape and
life span are gathered at this stage. This is an important
stage since this would be the basis for the product to be
produced or provided
reviews of competitive
B. Establishing products, you
Target Specifications may onnow
- Based targe
customer's
needs and
establish specifications of the prospective new product t
and/or service. specifications are essentially a wish-list. Targe
07 t
C. Competitiv Products - To provide
Analyzing e important product/service
information establishin
important to analyze specifications,
existing it is
competitive products.
on g
D. Generating Product Concept - This is done by
developing a number of product concepts to illustrate what
types of products are both technically feasible and would
best meet the requirements of the target consumers/market
E. Selecting a Product Concept - Through the process of

evaluation between attributes, a final concept is selected. To
obtain feedback from certain key customers, the final
selection and additional market research can be applied..
08
F. Refining Product Specifications - Product/service
specifications are refined in this stage on the basis of input
from the foregoing activities. Final specifications are the
results of extensive study. The expected service life and
projected selling price are also being considered at this
stage.
G. Performing Economic Analysis - This is to be done by
reviewing and estimating the economic implications
regarding development expenses, manufacturing costs.
and selling price of the product to be offered/provided
H. Planning the remaining Development Project - in this

final stage, you may prepare a detailed development plan
of activities,
which includes the necessary resources and expenses, and
a list
a development schedule with indicators for tracking
progress. 09
FINDING VALUE
Every created product has its own value, more often than
that, it can be analyzed when you see your customers go
and buy your products most often. This implies that you
offer something to your customers which they will value or
treasure.
Value proposition is the value that you incorporate to your

product. It is "a believable collection of the most persuasive
created
reasons by fulfilling
people deep notice
should desiresyou
and and
solving deep
take problems.
action you
This is whatfor".
are asking gets the
This is people moving and keeps them
spending for your product/service.
1
0
INNOVATION
The introduction of something new in the existing product or
service is commonly known as Innovation. This may include
a new idea, method or a system in the business. An
entrepreneur must know how to innovate to increase its
sales and profit. Like what Dodong Cacanando did on his
farm, he is not only planting one particular crop but a lot of
high valued crops. His lettuce farm produces a lot of
varieties (Ice berg, green coral, red coral and romaine) that
his customers may be able to select. He managed to
target big companies (Mc Donalds, KFC, Montery) as his
partners to sell his agricultural products.
1
1
Unique Selling Proposition (USP)
One of the most profound ways of selling the product or service being
offered is done through Unique Selling Proposition (USP). As a
competitive seller, you have to consider that your business should
stand out when compared to other competitors which have the
same products as yours. One must have to sell its product to himself
before he can begin to sell it to his target customers. This is especially
applicable when your product or service is similar to those around you.
Unique selling propositions would require careful analysis on how

other businesses' ads and marketing strategies are presented. Apart
from the qualities of their product or service, you have to analyze what
they sell, you can learn a great deal about how other companies
distinguished themselves from their competitors.
1
Here's how to discover your Unique Selling Proposition and use it to
increase your sales and profit:
Use empathy by putting yourself in the shoes of your
customers. Never get to fall in love with your own product or
service or brag about it to the public. Remember that agricultural
products are not hard to sell because they are part of everyone's
basic needs. Always focus on the needs of the target customers,
put in your mind that you are making this product for their
satisfaction, and eventually to increase your sales or profit. Always
consider the quality, availability, convenience, cleanliness, reliability
and friendliness and just ignore your competitors.
Identify what drives your customer to buy your products. Do
some efforts to
find out, analyze and utilize the information that motivates the
customers in their decisions to purchase your product/service.
Accept criticisms from the
THANK
YO U

Product Development

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Product

1.For whom are the product/service aimed?

2. What benefit will the customers expect from it?

3.How will the product differ from the existing

1.Basic commodities for consumption

The very critical stage in developing a product is

A.Identifying Customer Needs - could be in the form of

E. Selecting a Product Concept - Through the process of

H. Planning the remaining Development Project - in this

Value proposition is the value that you incorporate to your

Unique selling propositions would require careful analysis on how

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