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What is Market Development?

Product plays crucial role in commercial activities of each company. If company sell a large number of product, it will get a lot of profits. So that, many companies often carry on developing market to approach new customers, new segments, etc. In business, this activities are called Market Development.

What is Market Development?

Market Development is a marketing strategy in which a company tries to sell an existing product to a new group of consumers.

The seller may do this by promoting the product in a new geographical area. It may also try to present it in different media. For example, if the product currently sells to young people, it may try placing adverts in publications that older consumers read.

In other words, it is a strategic step a company takes to exploit an existing market further. It takes this step rather than trying to look for a new market.

Many companies try developing market to earn so much profit. Courtesy: Marketing91.

4 Steps in Development Market

There comes a time in every organization when the growth is limited, and the market is saturated. In such cases, the company has to look for new markets for their existing products. To implement a market development strategy, the organization has to pass through multiple steps.

Before implementing a market development strategy, the organization has first to have proper business goals and objectives and also a plan to accomplish it. Following are the four steps which organization in the market development:

1. Define the Target Market

Before starting the Market Development, the company has to think about the customer. The primary question in this stage is to answer who your customer is. Customers can be differentiated on their age, gender, status, and many other factors. A clear target market will always help the organization to plan their Market Development accordingly.

Define the Target Market base on many factors, such as: age, gender, etc.
Courtesy: Volusiaflagler.

With the help of digital marketing, advertisements are targeted explicitly to the selected audiences. Similarly, if the target market is not defined correctly, then there is a possibility of the market development process going haywire.

2. Market research

The next up is to conduct thorough market research related to your customers and products. The market research can be to address many questions like what does the financial profile of the target audience, what is the income levels of the target audience, what are the competitor products are used by the target audience, why are the customers using the competitor products, etc.

There are many tools help to carry on a market research. Courtesy: Thuvienhoasen.

Proper market research will help to build a healthy market development plan. Analyzing the buying habits of people, understanding their interests, effect of various factors which influence the buying behavior of the customer like climate, geography, political factors, sociological factors, etc. following what products are the customer is currently using and why are they using is a most crucial part of market research.

3. Decisions

Once the analysis and market research is completed, and you will have a good idea about the growth potential for your product in this current market. If the market plan is lucrative and will be able to get decent profits, then you can enter the market.

There is always going to be some risk in a new market, and your ability to face that risk will determine whether you want to enter the market or not. If you do not want to go even with the slightest chance, then no market will be suitable for your product but if you’re okay with some amount of risk, then the market is good enough.

4. Plan to enter Market

Once you have decided to go ahead with the new market, then the next step would be to develop and implement as well as execute an excellent strategic plan to promote your product or services.

A detailed marketing plan and promotion plan should be in place to introduce and promote your product to the new target market. This plan should include many factors such as point of purchase, media, advertising plan and advertising medium that you’re going to use.

As the customers are established in the new target area, you must focus on their needs. Customer satisfaction surveys, after-sales service, will help to find out what customers liked or disliked about your product or service. Personal touch or asking them personally will help you get direct answers.

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What is Product Management?

What is Product Management?

According to the Business Dictionary, Product Management is the development, marketing and sale of a product to a customer. Product Management starts from when a product is merely just an idea and continues all the way through the product lifecycle, including when the product arrives in the customer’s home.

Product Management depend on the company and type of products. However one thing is consistent, the product manager represents the customers’ needs. The product manager is responsible for bringing together the technologybusiness, and users.

The technology includes the actual product itself. The business represents those that have the ability to bring the product to market, and the user is the customer that has a desire for this product.

What is the objective of Product Management?

The main objective of Product Management is the development of a new product or products. This product should be better than what is currently available, or at least be able to differentiate itself as unique, in order to be of value for the customer.

What determines whether the product is profitable and successful is the customer’s reaction. While Product Management can vary in its function and the roles related to it, according to the size of the company, there is always a product manager to make certain that the objectives of the product are met. This can be a person or a group of people in the organization.

Product Management doesn’t only add to meet the objectives of the product and organization; it can also choose to remove something from the process, which is called an elimination decision. This includes a detailed report on the impact that this elimination will have on the whole business.

How to plan Product Strategy?

There are four key components to a product strategy.

Firstly, most important thing is the customer. What they want and how to get it to them. Therefore, defining the customer is a crucial aspect of any successful strategy. A strong understanding of a customer’s need is required before strategizing the product. The customer and the marketplace often changes, so allow for wiggle room to adjust the strategy with customers’s feedback.

Secondly, understand the competition. Determine how your strategy will differentiate yourself from those that are offering similar products in the market. Know what your product can deliver that the competition can’t or isn’t currently addressing; this means studying the competition and analyzing the marketplace to see if you can discover any opportunities that aren’t being taken advantage of.

Thirdly, how will the product be profitable for the company? If your organization is for-profit, then making money is the bottom line. If your product is not addressing this concern, it is not going to be a success. Therefore, describe how the product you’re planning to develop is going to help the company meet its business goals and make money.

Finally, don’t forget to consider the macro environment. The macro environment accounts for economic, technological, political and cultural forces that are at play and can impact the market and your product’s entry into it, over the short- and long-term.

Therefore, think about emerging markets where there can be a demand for the product, new technologies, what economic trends are impacting your customers and whether or not your customers needs and behaviors changing.

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What is Product Design? How to determine a Good Product Design?

What is Product Design?

Product Design is the act of creating a new product, after carrying out research about a market opportunity, shipping the product to the market and getting feedback from users of the product.

It is an all-encompassing process that includes all the processes from the time of market research down to when a product is being used by a user. Those involved in creating products are known as product designers.

The term designing the product refers to the determination of shape, standard and pattern of the product. It includes:

  • Specification
  • Experimental and development work for the production of desired product,
  • Calculation of estimates and drafting estimates of contracts for new inquiries,
  • Issuing necessary instructions to the production department for production.
working in a group
Photo by Kaboompics .com on Pexels.com

Why is Product Design important?

A successful product quickly acquires new users and customers and delivers consistent value. It’s not surprising that companies with successful products grow their customer base, increase their revenues, and outperform competitors.

android smartphone
A smart phone of LG. Photo by Zain Ali on Pexels.com.

Companies like Apple, Samsung, LG, and many others have built multi-billion dollar brands with successful product design.

And, while you might not have a Product Design budget that rivals those companies, you shouldn’t lose hope. When planning your next product, the less you leave to chance, the better.

How to determine a Good Product Design?

A good Product Design should posses the following characteristics:

1. Function

A product can be sold if it meets the needs of the consumer so that it must be designed based on their demands. For example, a customer expects a gas lighter to be convenient (i.e., to instantly light the gas stove). If the gas lighter cannot achieve that, then the purpose is lost as the basic function is not met.

2. Reliability

It is the probability that there will not be any major failure of the product during its use. For example, if certain components of a product are put into use very often, the reliability of each component need staggeringly high.

Reliability helps prolong the life of the product. Photo by Nexxis.

3. Maintainability

The lubrication points and other areas for servicing of the product to be designed, ought to be easily accessible even though the physical form may have to be altered a bit. The alternative is to make a trouble free product with expensive design.

The trade off between being trouble-free and maintainability is an important decision at the design stage and it mainly depends on the nature of the product. The after sales feedback from customers is quite valuable in improving upon the maintainability of a product.

4. Minimum Cost

Design influences manufacturing cost. A good product design must ensure minimum manufacturing cost. Some of the areas in which savings can be effected at the design stage have been discussed already.

5. Procducibility

A product should be designed in such a manner that it can be produced easily at a reasonable cost. Least number of operations are required to produce a product quickly and cheaply.

This may be possible with change in technology. For example, instead of machining an intricate part such as gear, it can be molded, without affecting its function.

6. Simplification

Simplification and producibility go hand in hand. The simpler the design of the product, the easier it is to produce, the lesser it costs and more reliable it is.

Simple interface of defibrillator – CardiAid AED.Photo by Vanstraatenbhv.

7. Quality

A good quality product design ensures that the quality of a final product is obtained through its individual components. The tolerance specified at every stage ensures a end product with the desired quality.

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New Product Development and Research & Development – What is the Difference?

New Product Development and Research & Development are two concepts that often appear in the manufacturing sector. If we don’t understand clearly, we will be easily confused. In this post, we will clarify these two concepts and point out the differences between them.

In the some previous posts, we introduced obviously about New Product Development so that we only focus on Research & Development in this article.

If you are concert about New Product Development, please access this link: https://meslab.net/new-product-development-and-business-development-what-is-difference/

What is Research Development?

Research and Development is often referred to as R&D. It seems to innovation activities carried out by businesses or governments to develop new products/services or improve products and services available.

Characteristics of Research and Development activities include:

  • Novelty: The results of the activity must be new discoveries or maybe unknown
  • Creativity: Based on initial unclear concepts and hypotheses.
  • Uncertain: The final outcome cannot be ascertained.
  • Systematic: Planned and budgeted for implementation.
  • Assignable and renewable: The activity can be transferred to another person, group, or business and the results remain the same.
R&D in medical to make up new medicine. Courtesy: nlspharma.

Research and Development is carried out in some main actions:

1. R&D market
A research usually begins with problem needs solving. Similarly, a new product or service will have to address the frustrations customers face with their current product, their future demand, etc. So, the R&D team needs to collect and Analysis of market information, customer needs.

For example: Collecting, learning and analyzing new trends that customers are interested in. Typically, this will be undertaken by marketing or sales personnel, even an outside specialized unit. Sometimes, the R&D department also directly explores the market to better understand customers.

2. R&D technology

The mission of Research & Development is finding new technologies, develop technologies with high applicability. Thereby, we can create new products with differentiated features. This task also includes “technological intelligence”.

For example: In 2007, Apple launched the iPhone with a multi-touch capacitive touch screen and became the most popular smartphone. Before that, Apple’s team has carefully researched this technology.

Multi-touch and touch keyboards have been developed by a Fingerworks company since the 2000s. Apple acquired this company in 2005, keep developing and optimizing technology in order to be suitable for iPhone.

iPhone 3 is a result of Apple after many years research multi-point capacitance technology. Courtesy: GenK.

3. R&D product
It aims to make improvements design, materials, uses, features, etc. based on existing technologies. Especially, this includes improving the finishing and packaging methods to save costs as well as convenience for users.

4. R&D Process

It can be improving, developing operating procedures, manufacturing processes, service processes, etc. The improvement of a successful process will contribute to bring productivity – higher efficiency for businesses.

For example: Some companies do in-depth research to develop and improve processes to apply suitably for each enterprise.

The relationship between Research & Development

Research Development
The goal is new idea, new method,
new technology, invention.
The goal is new product
It’s is difficult to deploy because Research is based on solid
technology foundation
It’s easy to deploy because of having available technology
A lot of investment costLow investment cost
Have to spend long timeHave to spend a short time
Bring out big valueBring out a small value
Out put isn’t reliableMain out put is product, service or relative something.
The relationship between Research & Development.

The difference between New Product Development and Research & Development?

New Product Design Research & Development
NPD need specialityR&D need deep speciality
NPD is wider than R&DR&D is narrower than NPD
NPD begins with realizing market opportunities for products, ending with the production, sale and distribution of products to
customers.
R&D only carries out technical design, includes: product idea, technology, technique project, concept, test.
Although NPD is more simple than R&D but NPD needs high-quality process with many steps.R&D have to carry out some steps.
NPD used R&D’s output (technology, component, etc.) to manufacture worked-out product.R&D seem to support action for NPD
Nowadays, NPD is more and more popular in over the world. Almost company has Product Development department.
Only some big companies operate in R&D sector to make a profit or serve manufacture strategic product.

The difference between New Product Development and Research & Development.
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New Product Development and Design & Development – What is the difference?

New Product Development and Design & Development are impressive titles that are often heard in business organizations. However, not everyone understands and knows these concepts well. So, what are Product Development and Design & Development? How are they different? Let’s find out.

What is New Product Development?

New Product Development is the activity to bring out a new product in the market. It means this product has never been manufactured in this company.

“New Product Development begins with realizing market opportunities for products, ending with the production, sale and distribution of products to customers.”

With this definition, it is clear that the scope of New Product Development is very wide. It almost covers the entire life cycle of the product, not just limited to the stages of drawing, calculating or testing.

Therefore, an engineer works in the Product Development department must not only have in-depth technical knowledge but also have diverse knowledge along with effective working skills and methods.

Motorola DynaTAC 8000x is the first handheld mobile phone on the world.
It’s Fundamentally New. Courtesy: Community.com.

In industrial production, profession product development process will help company make new products response standard and quality.

MES LAB has developed a complete Product Development process, based on the “Design Thinking” rule. It consists of the following steps:

  • Empathize
  • Define
  • Ideate
  • Prototype
  • Test

This philosophy has the following 4 characteristics:

  • Centered Human centered: User centered
  • Collaborative: Collaborate closely in the design process
  • Experimental: Promote prototyping and testing
  • Optimistic: Every problem can find a solution

What is Design & Development?

Design and Development has propose to find out description of the product’s design, chart its development within the context of production, marketing. More ever, it also create a development budget that will enable the company to reach its goals.

There are generally three areas you’ll cover in the development plan section:

  • Product development
  • Market development
  • Organizational development

The first step in the development process is setting goals for the overall development plan. From your analysis of the market and competition, most of the product, market and organizational development goals will be readily apparent.

Your goals should be quantifiable in order to set up time lines, directed so they relate to the success of the business, consequential so they have impact upon the company, and feasible so that they aren’t beyond the bounds of actual completion.

How are they different?

New product development begins with realizing market opportunities for products, ending with the production, sale and distribution of products to customers.Design and Development has propose to find out description of the product’s design, chart its development within the context of production, marketing.
Output is new product has never been manufactured in a company.This product is available so that engineer need to innovate and develop it. It can be Derivatives and Improvement.
New Product Development’s scope is narrower than Design and Development’s scope.Design and Development’s scope is wider than New Product Development’s
New Product Development inherent in product.Design and Development can be apply to website, service, etc.
New Product Development includes many steps so that it can take a long time.Because of available product so that engineer don’t have spend to much time.
The difference between New Product Development and Design & Development.
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What Is ...

New Product Development and Business Development – what is the difference?

New Product Development and Business Development are impressive titles that are often heard in business organizations. However, not everyone understands and knows these concepts well. So, what are Product Development and Business Development? How are they different? Let’s find out.

What is New Product Development?

New Product Development is the activity to bring out a new product in the market. It means this product has never been manufactured in this company.

For example: company A trades in air purifier about 5 year. However,
company A want to expand market so that it have to manufacture new products. It can be dehumidifier, humidifier or combination product.

“New product development begins with realizing market opportunities for products, ending with the production, sale and distribution of products to customers.”

With this definition, it is clear that the scope of New Product Development is very wide. It almost covers the entire life cycle of the product, not just limited to the stages of drawing, calculating or testing.

Therefore, an engineer works in the Product Development department must not only have in-depth technical knowledge but also have diverse knowledge along with effective working skills and methods.

Coca – Cola appears for the first time in 1899. Courtesy: Wikimedia Commons.

In industrial production, profession product development process will help company make new products response standard and quality.

With 14 years of experience in making products, cooperating with businesses, MES LAB develops a complete Product Development process, based on the “Design Thinking” rule. It consists of the following steps:

  • Empathize
  • Define
  • Ideate
  • Prototype
  • Test

This philosophy has the following 4 characteristics:

  • Centered Human centered: User centered
  • Collaborative: Collaborate closely in the design process
  • Experimental: Promote prototyping and testing
  • Optimistic: Every problem can find a solution

What is Business Development?

In the simplest terms, Business Development can be summarized as the ideas, initiatives and activities aimed towards making a business better. This includes increasing revenues, growth in terms of business expansion, increasing profitability by building strategic partnerships, and making strategic business decisions.

Business development based on 3 main components:

  • Customers: Research on customers’ behaviors, regions, etc.From that, they can find new customers and create more value for existing customers.
  • Market: Understanding and assessing the market, analyzing competitors, etc. grasping the latest market trends
  • Relationships: Building and leveraging relationships based on trust to facilitate opportunities.
Business development based on customers, market, relationship.
Courtesy: Ctagency.vn.

Business Development activities extend across different departments, including sales, marketing, project management, product management and vendor management. Networking, negotiations, partnerships, and cost-savings efforts are also involved. All of these different departments and activities are driven by and aligned to the business development goals.

How are they different?

Product DevelopmentBusiness Development
Product development is the
creation of new products to provide consumers and markets so that enterprise can earn profits through sales and business activities
Business Development can be summarized as the ideas, initiatives and activities aimed towards making a business better
The goal is to create new productsThe purpose is to develop and expand business
Short-term natureLong-term nature
Who responsible are the engineersBusiness developer with expertise in economics will perform.
The differences are between New Product Development and Business Development.

What is the relationship between New Product Development and Business Development?

Although there are a few differences, however, New Product Development and Business Development also have some similarities such as:

Firstly, both of these activities are creative.

Innovation in New Product Development is expressed through product ideas. This idea must be unique, new, hard to copy, highly feasible, etc. From that, it is able to design and develop ideas into concepts and finished products.

Simply ! No idea, No product.

For Business Development, the idea is even more important. Ideas are expressed through business development strategies. Because of its long-term nature. A good business strategy will create a foundation for businesses to grow and expand their business in a few decades.

Secondly, both of them are indirectly profitable for the company

After, the product is manufactured. Selling product need to go through the sales and marketing department – the department directly working with customers.

Besides, Business Development aims to expand and develop the market in order to find potential market sources for products. After that, sales and marketing department will sell products to bring direct profits to the company.

In conclusion, they have reciprocal support.

In the course of product development, one important step is Define. This activity aims to devise strategies for the product. That is, the product will be sold to the audience, price, market, etc.

At the same time, good products also bring high opportunities to expand and develop business markets.