DP - Product Development [LESSON]

Product Development

The marketplace is never static: it is dynamic and fast changing, and demand for products is constantly shifting as needs, wants, and technology all change. As a result, companies must always evaluate their existing product line and look for ways to ensure that it is up to date and in line with consumer desires. Continuous decisions must be made about whether new products should be added and whether old products should be removed.

  • New product generation involves multiple stages and a high level of financial investment, and has no guarantee of success.
  • When a new product is introduced, companies must still convince buyers to adopt them into their routines, in order for sales to be consistent.

Ideas for new products can be obtained from basic research using a SWOT analysis. Market and consumer trends, R&D departments, competitors, focus groups, etc. may also be used to get an insight into new product lines or product features. New product innovations are responsible for employment, economic growth, technological process, and high standards of living. Innovation is crucial for the development of successful new products. Described below are different sources of innovation that lead to the generation of ideas for new products.

Sources of Innovation that Generate Ideas

While innovation is crucially important to any forward-thinking organization, developing and evaluating innovations is a challenge. Where do innovative ideas come from? Discussed below are five crucial sources of innovation: technical breakthrough, non-technical idea development, environment, serendipity, and purposeful development. Click each source to learn more.

Career Highlight

Career-Buyers & Purchasing Agents

 

  • Buyers and purchasing agents attempt to buy the best products for a business at the lowest prices.

    Buyers: buy finished goods like clothing or furnishings.

    Purchasing Agents: buy parts or materials to make goods.

    What does a buyer or purchasing agent do?

    • Research suppliers (history, quality, price and availability)
    • Attend trade shows to learn about new products and stay abreast of industry happenings
    • Travel to supplier factories
    • Solicit bids from supplies
    • Create a list of what they need for supplies and negotiate price
    • Problem solve when there are problems with the supplier

     Courses you should take if you are interested in being a Buyer or Purchasing Agent:

    • Accounting
    • Computer
    • Business
    • Marketing
    • Sales
    • Retail marketing

 

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