You will now create a new product, and describe the marketing activities that go into each step of the development process. Your report should cover the following aspects of product development: idea generation and market conditions, distribution and sales data, costs, testing, and advertising. Expectations for each section are described in detail below.
First, you will generate an idea for a new product, based on your own areas of knowledge, and market research. You should write a paragraph explaining the product (including features that make the product unique). You should then write a paragraph explaining the market conditions that prompted you to choose this idea. The "market conditions" section should include sales data on at least two similar products, including their features, prices, and sales numbers.
Next, you should write one paragraph explaining where the product would be available for purchase, and why you made the choice. Support for your choice may be evidence from competing brands, convenience, etc.
Next, a rough estimate of production costs should be made. These costs should cover manufacture, distribution, and sales. Information for raw materials, manufacturing, and the production of similar products is available online, and can serve as the basis for your estimates. This section should conclude with an estimate of the sales price for the new product.
Next, you should stage a "testing phase." Though you may not have access to test markets or ideal test subjects, find at least five friends, family members, or online community members who share key determining factors with your target audience. These factors should be the ones that govern the person's purchase of your type of product. For example, if you are developing an idea for a makeup product marketed to females, ages 16-21, the main factor in your test subject choices should be whether or not the person uses makeup. Though males and people outside of your target age range are not within your target demographic, they may provide valuable insight if they have experience with makeup. Describe your new product idea to your test subjects and ask for their feedback, using at least three good survey questions. Document the testing phase by listing the questions and summarizing the responses. After these results, write one paragraph explaining whether or not you would revise your product idea, based on the feedback.
Finally, design a magazine advertisement for your new product. You may use an example made for a previous assignment or class, if it relates to your new product idea. The advertisement should display the brand name (and potentially the product), be eye-catching, and appeal to the target customer for the product.
