Introducing a product to the market is not just about bringing a physical product to market, but also about building awareness and a positive impression among customers. It also involves monitoring the product’s performance in the market and customer reactions, allowing for the adjustment of strategies and products to changing market needs and expectations. Read on to learn how a properly conducted structured product development process should proceed.
Structure of the product implementation process
A structured product development process is a controlled and well-managed cycle of creating a new product, divided into stages. This process includes idea generation, design, testing, and final deployment. The structured process is the foundation that helps avoid chaos and randomness in product development. This is crucial because it ensures repeatability and control over the product’s quality.
But why is this so important? The success of a new product depends largely on its development process. Quality, timeliness, and alignment with customer needs are key evaluation criteria. Implementing a structured process helps meet these criteria, ultimately translating into profits and the company’s market position.
Structured product development process – Implementation phase
The market introduction phase that follows the product development process is associated with relatively high costs and low sales volume, which can be burdensome for many companies. Sales growth is limited because the product and brand compete with already well-established competition. During this period, the company must prepare for potential losses or, if possible, minimize the achieved profit. When companies face limited production capacity and the need for intensive promotion, often the revenue is insufficient to cover operating costs.
The need to recoup earlier investments in research and development can lead to financial difficulties for businesses. High unit production costs, sales costs, and frequent customer complaints contribute to the depletion of the company’s resources. In this phase, companies must be ready for investments and patience while striving to gain a market position and customer loyalty.
Cost minimization – Initial steps in the market
How can a company minimize costs during this stage? It’s necessary to analyze the market before taking action and continuously assess the effectiveness of the marketing strategy or the reasons for customer complaints and returns.
Surveys conducted after product launch become an invaluable source of feedback from customers. This tool allows for the evaluation and improvement of the product development process. Why is this so important?
Post-launch survey objectives:
- Understanding customer requires: Gathering feedback from users after product launch helps understand their needs and expectations, which is crucial for improving future products.
- Satisfaction assessment: Surveying customers after the launch helps determine if the product met their expectations, and if not, why.
- Quality and performance assessment: Evaluating the product’s functionality and quality provides valuable feedback for improving current and future products.
Examples of post-launch survey questions may include inquiries about product ease of use, customer service quality, the availability of essential features, or overall customer satisfaction. At this stage, it’s a crucial action for a conscious business.
Lack of market research – Consequences for the company
Skipping post-launch surveys is a risk that companies should not take. The negative consequences of such a decision can be significant:
- Lack of customer reaction knowledge: Without post-launch surveys, the company remains somewhat in the dark about customer reactions to its product.
- Loss of potential customers: If the product doesn’t meet expectations, customers may leave, and the company may miss out on profits.
- Erroneous decisions: Lack of feedback can lead to incorrect decisions regarding the further development of the product, resulting in additional costs.
Why invest in market research?
Post-launch surveys are a critical component of the structured product development process. They offer the opportunity to learn from customers and adapt products to their needs. Omitting this tool can lead to loss of competitiveness and negative consequences.
Try Vivelio for free and gain a better understanding of your customers’ opinions about your products. Regular research allows you to respond more effectively to customer needs, enabling you to build products that truly meet expectations and attract loyal customers.