Environment

and Market
 a process of making a new
product to be sold by a
business or enterprise to its
customers
 Involves testing, modifying, and
refining the product until it becomes
ready for production
Product development may involve
modification of an existing product or its
presentation, or formulation of an entirely
new product that satisfies a newly-
defined customer’s needs, wants and/or a
market place.
Consider the following:
 For whom are the product/services
aimed at?
 What benefit will the customers
expect from product/service?
 How will the product/service differ
from the existing brand? From its
competitor?
Consider also:
Needs
 are important things that an
individual cannot live without in a
society
 basic commodities, clothing,
shelter, sanitation & health, and
education
 are desires, luxury and
extravagance that signify wealth
and expensive way of living
 accessories, expensive shoes,
eating in an expensive restaurant,
luxurious cars, and jewelries
 Concept of Developing
a Product
Concept development
 is a critical phase in the development
of a product
 the needs of the target market are
identified, and competitive products
are reviewed before the product
specifications are defined
Stages of Product development

• Identify customer needs

• Establish target
specifications
• Analyze competitive
products
• Concept development
• Select a product concept
• Refine product specifications
• Perform economic analysis
• Test marketing
• Product Launch
 Finding value
Value proposition
 value incorporated in a product
 a believable collection of the most
persuasive reasons why people should
notice you and take the action you’re
asking for
innovation
 introduction of something new in your
product or service
 may be a new idea, a new method,
or a new device
 may be a new idea, a new method,
or a new device
Unique selling proposition
(USP)
 factor or consideration presented
by a seller as the reason that one
product or service is different from
and better than that of the
competition
How to discover and use USP to
increase sales and profit?
• Use empathy
• Identify customer’s desires
• Discover customer’s genuine
reasons for buying the product
1. Which is a process of making new
products and services which will be sold
to the customers to satisfy their needs
and wants?
a. Concept Development
b. Product Analysis
c. Product Development
d. Product Launch
2. Which is NOT an example of a
‘want’?
a. Chevrolet
b. Food
c. Jewelries
d. Nike Shoes
3. It is a good or service or idea consisting
of tangible and intangible attributes that
satisfies consumers and is received in
exchange for money or some other unit
of value.
a. Need
b. Want
c. Raw Material
d. Product
4. How can an entrepreneur seize
business opportunity in a particular
business environment?
a. identify first the needs and wants
of the customers
b. create a product that satisfy
needs of the people
c. Perform economic analysis
d. conduct survey in a given population
5. It may refer to the economic, cultural,
and social conditions in an area that
may open business opportunities.
a. Market
b. Needs and wants
c. Area of production
d. Business Environment
Directions: Write T if the statement is
True and F if the statement is False.
6. Humans can live without their wants
and desires.
7. Product development also involves
testing, modifying and refining the
product.
8. New products are created as a result
of economic analysis conducted by
the entrepreneur.
 9. One of the consideration before
developing a product is test
marketing.
10. USP is what make the product
unique or better than the other.

11-19. Stages of Product Development

THANK YOU!!