ENVIRONMENT AND

MARKET(EM)
Product Development

• The 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 marketplace.
DEVELOPMENT

• identifying a market opportunity

• creating a product to appeal to the identified

market

• testing, modifying and refining the product until

it become ready for production.
NEEDS AND
WANTS
 Needs in business are important things that
every individual cannot live without in a
society.

1. basic commodities for

consumption;

Needs 2. clothing and other personal

belongings;
3. shelter, sanitation and
health; and
4. education.
 Wants are desires, luxury and
extravagance that signify wealth
and expensive way of living.

Some examples of wants or

desires: fashion accessories,
Wants expensive shoes and clothes,
travelling around the world, eating
in an expensive restaurant;
watching movies, concerts, having
luxurious cars, wearing expensive
jewelries, perfume, living in
impressive homes, among others.
Needs and wants of
people are the basic
indicators of the kind of
business that you may
engage into because it
can serve as the
measure of your
success.
Concepts of Developing a Product
• In this stage, the needs of the target
market are identified, and competitive
products are reviewed before the
product specifications are defined. The
product concept is selected along with
an economic analysis to come up with an
outline of how a product is being
developed.
Figure shows the stages of concept development
of a product.
The process of product development follows the
following steps:

• A. Identify Customer Needs: Using survey forms,

interviews, researches, focus group discussions, and
observations, an entrepreneur can easily identify
customers‘ needs and wants. In this stage, the
information that can be possibly gathered here are
product specifications (performance, taste, size, color,
shape, life span of the product, etc.).
The process of product development follows the
following steps:

• B. Establish Target Specifications: Based on customers'

needs and reviews of competitive products, you may
now establish target specifications of the prospective
new product and/or services.
The process of product development follows the
following steps:

• C. Analyze Competitive Products: It is imperative to

analyze existing competitive products to provide
important information in establishing product or
services specifications. Other products may exhibit
successful design attributes that should be emulated or
improved upon in the new product or services.
The process of product development follows the
following steps:

• D. Generate Product Concepts: After having gone

through with the previous processes, you may now
develop a number of product concepts to illustrate what
types of product or services are both technically feasible
and would best meet the requirements of the target
specifications.
The process of product development follows the
following steps:

• E.Select a Product Concept: Through the

process of evaluation between attributes, a
final concept is selected. After the final
selection, additional market research can
be applied to obtain feedback from certain
key customers.
The process of product development follows the
following steps:

Refine Product Specifications: In this

• F.

stage, product or services specifications

are refined on the basis of input from the
foregoing activities. Final specifications are
the result of extensive study, expected
service life, projected selling price and
among others are being considered in this
stage.
The process of product development follows the
following steps:

Perform Economic Analysis: Throughout

• G.
the process of product development, it is
very important to always review and
estimate the economic implications
regarding development expenses,
manufacturing costs, and selling price of the
product or services to be offered or
provided.
The process of product development follows the
following steps:

Plan the Remaining Development

• H.
Project: In this final stage of concept
development, you may prepare a detailed
development plan which includes list of
activities, the necessary resources and
expenses, and development schedule
with milestones for tracking progress
Finding Value

• There must be something that has

to make you the best option for your
target customers; otherwise, they
have no reason to buy what you‘re
selling. This implies further, that you
offer something to your customers
that they will make them value or
treasure your product or service.
Finding Value

• The value that you incorporate to your

product is called value proposition. Value
proposition is ―a believable collection of the
most persuasive reasons people should
notice you and take the action you‘re asking
for.‖ Value is created by fulfilling deep
desires and solving deep problems. This is
what gets people moving, what gets people
spending for your product or service.
Innovation

• Innovation is the introduction of

something new in your product or
service. This may be a new idea, a
new method or a device.

• Some of the possible innovations in

your products are change of
packaging, improve taste, color, size,
shape and perhaps price.
Unique Selling Proposition (USP)

• Unique Selling Proposition is the 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. Before you can begin to sell
your product or service to your target
customers, you have to sell yourself on it.
Unique Selling Proposition (USP)
• USP would require careful analysis of
other businesses' ads and marketing
messages. If you analyze what they
say or what they sell, not just their
product or service characteristics, you
can learn a great deal about how
companies distinguish themselves from
competitors.
 Here's how to discover your USP and use it to increase

Use empathy:
your sales and profit:

Unique Always focus on the needs of

the target customers and forget
Selling falling in love with your own
Proposition product or service. Always
(USP) remember, you are making this
product or providing for the
target customers to eventually
increase sales and earn profit
and not making this product or
service for you.
 Here's how to discover your USP and use it to increase

Use empathy:
your sales and profit:

Unique Essential question such as what

Selling could make them come back
Proposition again and ignore competition
(USP) should be asked to oneself.
Most possible answers may be
focused on quality, availability,
convenience, cleanliness, and
reliability of the product or
service.
 Here's how to discover your USP and use it to increase
Identify what motivates your
your sales and profit:

customers.

Unique It is very important for

Selling you to understand
Proposition and find out what
(USP)
drives and motivates
your customers to buy
your product or
service.
 Here's how to discover your USP and use it to increase
Identify what motivates your
your sales and profit:

customers.

Unique Make some efforts to

Selling find out, analyze and
Proposition
(USP)
utilize the information
what motivates the
customers in their
decisions to purchase
the product or service.
 Here's how to discover your USP and use
itDiscover
to increase your
the actual and sales
genuineand profit:
reasons why
customers buy your product instead of a competitor's.
Information is very important in decision making

Unique
Selling A competitive
Proposition entrepreneur always
(USP) improve their products
or services to provide
satisfaction and of
course retention of
customers.