Stages of
Product
Development
1. Idea Generation
• Use Research to come up with an Idea
• Product Mapping and Market Potential can be
used
2. Idea screening
• Look at what failed in the past, improve or make
brand new
3. Concept Development
• Designing prototypes
• Conduct more research
4. Market Strategy
• Establish Primary and Secondary Market (Using
Demographics, etc)
• Develop Marketing Strategy and Marketing Plan
5. Feasibility Study
• Calculate the costs of advertising, promotion,
distribution, transportation, storage, packaging and
all other expenses
• Product must be one that the company can make
and sell, that consumers want, and at a price they
can pay, and at a profit for the company
6. Product Design
• Design the product to meet Primary Market’s needs
• What will your customers want
7. Test Marketing
• Company will give a limited amount of the new
product for people to try
• The company will then have these people
complete surveys, etc
8. Market Entry
• Product enters the Product Life Cycle
SPANX – footless
pantyhose
Stage
How well did she perform this stage?
1
No initial research – her own idea, through her own experience
2
Research traditional pantyhose – associated problems
3
Visited knitting mills and Georgia Tech Univ – no prototype
4
Primary market – women/25-55/oprah watchers
5
Not done
6
Knew what customers wanted
Chose a memorable name
7
Personal in-store demos
8
Oprah Appearance – caused $30,000 in sales