The business world is never static. The market is subject to constant change and limited marketing opportunities encompassing their own life. Companies planning to develop have to select their own ways to do so. There are two alternatives – either sell new products to the existing customers or look for new customers for selling the existing products. What do the companies do in real practice? Companies try to develop new products for the existing customers.
Creating new markets for an existing product need a comprehensive new product development research to acquire the right result. The costs of acquiring new customers are the key reason that makes the life of business professionals more difficult. Research has proved that cost of creating new customer base is 7 to 10 times more than selling a product to the existing customers. Hence, it is better and cheaper to generate new products for the existing customers than conquer a new market.
Now, the question is why are the companies reluctant in taking this step? Partially because the companies do not like to dilute their own brands with that of others, and partly because they do not know the systematic process of developing new products. New products development involves 4 stages. They are –
- Talking to customers
- Finding their needs
- Analyzing different ways to act
- Doing it
How to develop a new product for the customers?
The product, which customer ultimately purchases, is the joint creation of an individual from the company and an individual from the customers’ side. However, companies should adopt more systematic method. For this, companies must make a mixture of diverse kinds of customers – for instance, 2 who do not have much knowledge, 2 adventurous and 2 large consumers. Give each of them a call and ask them to give their views on how to improve your company’s services and products.
Besides calling the customers, professionals can also visit them in person and pick ideas. Visiting them physically will give certain ideas, which remote communication cannot give. After talking to the customers, make a checklist covering the items companies must focus. This will sort out the areas about which business professionals should discuss with the customers. In the list, check whether there is anything in common and then sort out things according to some categories.
After that, shortlist the contact details and information about the customers and analyze their needs. Once the companies get to know how the customers use their products, they can discuss ways of developing them. Reaping the greatest benefit from the existing customer helps companies to clarify their needs and save a fortune while stepping new market areas unknown to them.
Thus, new product development research indicates that companies or businesses be interactive with the customers, know their exact needs and wants and then do the task in the like manner. In other words, the methodical approach of the companies is acceptable. This will help the audience know what a company can serve their needs.