What is the production process of a product?

Nowadays, companies follow a step-by-step process for product development.

Steps of designing and producing new products and services

1. Generate ideas

2. Screening ideas

3. Development and testing the concept

4. Business analysis

5. Product development

6. Test marketing or experimental marketing

7. Commercialization

8. Product launch

Generating ideas

The development of a product begins with the concept and in fact, the idea. In this process, the validity and accuracy of these ideas are evaluated, so at the beginning, all ideas are considered valuable. The idea making process is very principal that some remarkable producers have sections and even departments engaging necessarily in the production and development of ideas in their organization.
Sometimes, some of these crude and simple ideas need to be evaluated. SWOT or TOWS analysis are both abbreviations of the same words (S for Strength, W for Weakness, O for Opportunity and T for Threat) but in different orders. In addition, when it comes to practice, the only difference between SWOT and TOWS is that TOWS emphasizes the external environment while SWOT emphasizes the internal environment that provides a suitable framework to review a company’s strategy, position, and business direction. Or provides any other idea. Therefore, SWOT analysis evaluates an enterprise or economic subject or idea.
SWOT analysis helps us create an appropriate foundation for the strategy, position, and attitude of business or any other idea. Therefore, by using this method, we can evaluate the company’s position and find a new parallel path to our business strategy.
In addition to this commercial action, there are ways to concentrate on the needs and demands of customers that can be a source of new ideas:
• Conducting marketing research
• Paying attention to the market conscience and suggestions of the target audience — including feedbacks on current products and their strengths and weaknesses
• Encouraging employees and partners to make suggestions (using different methods such as brainstorming and…)
• Monitoring competitors and paying attention to their successes and failures

When it comes to decision making process for a new product, companies pay special attention to customer needs and demands . Studying competing products also can be a way of Idea making. Companies are trying to figure out why a competitor’s product is favorited by the consumers or most of customers demand that product. Companies also note top managements to generate ideas. For example, Steve Jobs at Apple was actively involved in generating ideas. Research teams, including scientists, patent holders, colleges and universities, are also bases for generating ideas.

Idea screening

The importance of this step roots from the fact that ideas that are not feasible for any reason and are not appropriate, should be eliminated as soon as possible. Ideas should be thoroughly reviewed objectively, preferably by a panel or committee.
At this stage it is necessary to consider a specific criterion to screen ideas. Criteria such as ROI (rate of return on investment), market traction and capacity, and feasibility of implementing ideas.Therefore, conducting market research on the idea enables us to carefully examine and see whether there is a demand for this idea or not, and what features should be included in the idea, in order to meet the specific needs identified in the market.

Development and testing the concept
You have an idea that has passed the necessary filters. Although the attitudes about that idea, within the organization, are important, what matters the most is the opinion of the customers.
So form a small group of loyal and trusted customers to evaluate their reaction to your idea. The idea must now become a concept, a concept with deep information that the customer can visualize.
Do they understand what you mean?
Do they need this concept and want it?
With the help of target customer feedback, this stage provides the further development of the concept, and in addition, the appropriate marketing message can be extracted on this stage.

The third stage begins when ideas move towards the development process. Here, the product idea has become several product concepts. From several product concepts, the one that seems appropriate is compared to competitors product to finalize the marketing strategy and positioning. The product concept is introduced to a centralized customer group as a prototype to examine their response.

Business analysis

As soon as the concept is tested and finalized, its profitability should be evaluated. This step requires making strategic decisions that are absolutely necessary and critical to the success of a product, such as final price ,the exact marketing strategy, product positioning and marketing mix to be used.
This analysis should also include other factors: whether there is demand for the product, a full cost assessment, as well as a thorough assessment of the competitive environment.

The fourth step involves creating a marketing strategy for the new product. Marketing strategy includes assessing market size, product demand, growth potential and profit estimation in the first years. The marketing strategy is more about launching the product, choosing the distribution channel and budget requirements for the first year.

Product development

If the new product is confirmd, it can be transferred to the technical development and marketing stage. At this stage, prototype or limited production model is created. Prototypes may change a lot during different stages of design and production in order to achieve a final desired product by consumers who are willing to pay money and buy it. Most of the products are tested before the official introduction to the market and a high volume of cash capital is spent to produce and promote them, using a small group of real consumers by manufacturers.
So check the conceptual sample among the selected group of your real customers and check their reactions.
This means that we can achieve the final result, about the detailed design and any production method, as well as the tangible product to test the consumers and receive feedback.
The fifth step includes the development of a business model around the new product. Commercial models begin with the estimation of sales, the number of purchases and the nature of the trade. The next cost estimate includes the production and distribution of the new products. On this basis, profit estimations are obtained.

Test marketing or experimental marketing

The marker test is different from the concept or consumer test. In order to finalize a product, the organization needs to test to obtain a more realistic insight into product commercialization. At this stage, we run the smallest mass assessment and profitability of the new product in the smallest target market (For example, based on Nanomarketing principles, the product can be used in a smaller-scale market than the target market and usually in size 0.03 to 1% of the target market). Whether the product is successful or unsuccessful in this small market, the organization can easily and quick continue to work or improve the product.
Decisions are made from a practical point of view; whether the continuation of the production based on technical and commercial standards, is possible. It is also projected if the analysis indicates the lack of balance between the cost and the estimation.

Commercialization

When the concept has been developed, the final decision should be made about the supply and launch of the product in the market. Marketing and pricing programs should be finalized and sales and distribution teams should be justified and trained in order to make the product as well as the whole organization, prepared for the final step.

The seventh step includes testing the market of new product. A new product, with a brand, packaging and price to absorb space in the consumer mind, is ready to launch.

Product launch

In order to have a perfect impact and maximum impact on the market, a precise launch program is required. This program should include deciding about the quality and releasing the product supply to the target audience. At this point, with the aim of remarking any mistake, we need to review the market performance.
When this stage is done, a nice management of the product life cycle ensures that the manufacturer has the best and highest profitability of its efforts and investments.
This step is to present the product in the target market, which is done by the appropriate marketing and strategy program. This step is called the commercialization phase.
The introduction of the new product is the survival requirement of each company. Companies that fail at a very low rate, should use a scientific process to produce new market offers.