PRODUCT

DEVELOPME
NT
► Before commercializing a new
product or service, the
entrepreneur must focus first
on refining the product or
service and validate its market
acceptability.
►The new product
does not have to be a
totally new product.
► It can be a new product line from the
existing business of the entrepreneur
► It can be a product line extension
► It can be a product enhancement
► It can be a repositioning of an existing
poduct.
 PRODUCT
DEVELOPMENT
► Is the process of developing, testing,
and commercializing a product or
service with the ultimate objective of
solving the problem of the primary
target market.
4 SEQUENTIAL STEPS OF PRODUCT
DEVELOPMENT

► Developing a product or service

description
► Creating a prototype
► Testing the prototype
► Validating the market
PRODUCT OR SERVICE
DESCRIPTION
► Describes how a product or service works
► Describe how a product or service benefits the
customers
► A clear product or service description is
important because this will serve as the
blueprint of all business operations
 PRODUCT OR SERVICE
DESCRIPTION

► It
should directly address the
primary target market in a
personal manner using everyday
language.
 PRODUCT OR SERVICE
DESCRIPTION

► It
should highlight the features
that will cater to the customers
needs or address the customers
problems.
 PRODUCT OR SERVICE
DESCRIPTION

► Realisticsuperlatives should be
used for the product description
►Creating a prototype
of the product or
service
PROTOTYPE
► Is a preliminary model or sample of a new
product or service that is created to test a product
concept or service process
► This is an exciting process because the
entrepreneur will be able to see that his or her
ideas will soon became tangible reality
ADVANTAGES
► Creating a prototype enables the
entrepreneur to engage in trial and
error, provides room for improvements
and refines the functionality of the
product design or service process
ADVANTAGES
► Creatinga prototype provides the
entrepreneur a window to test the
performance and specifications of
various materials and service
process.
ADVANTAGES
►A prototype helps the entrepreneur
effectively describe the product or
service to product team
ADVANTAGES
► Creatinga prototype elicits respect
from key stakeholders and
customers.
► Creating a prototype is the stage where the
entrepreneur can experiment, develop and make
some improvements in the potential product or
service.
► One technique for creating the best prototype is
by studying the competitors product or service
TESTING THE
PRODUCT
PROTOTYPE
► Testing the prototype is a vital process before
an actual product or service is launched to the
market
► Testing the prototype will give the
entrepreneur a leeway (freedom) to examine
and scrutinize (inspect) the prototype and
provide feedback as to what can be improved
before the launch.
TESTING METHODS
► FGD
► Legality and ethical test
► Safety test
► Product costing test
► Component test
► Competitors product or service test
 OF THE
MARKET
ACCEPTABILIT
Y
►Itis the process of finding
out if the intended primary
target market will be buying
the product or availing the
service.
► Market acceptability is a critical
factor that the entrepreneur must
validate before launching the
product or service because this
can strongly suggest if the
business will be successful or not.
► Market acceptability either
validates or disconfirms the
perception of the entrepreneur
about the sustainability of the
chosen primary target market