Relevance of Identifying New Product Metrics

Launching a new product amidst a very competitive business industry is a very challenging feat. To help ensure success, relevant new product metrics would have to be determined.

Launching a new product to the market is a big gamble on the part of a manufacturer or distributor. This is so because substantial investment would have to be spent in marketing and advertising this new item. This activity is very crucial as this is how prospective clients or target customers are informed about the product.

Without these promotional activities, it would be very difficult, or impossible even, to create demand for the product once it hits the stores and other retail outlets. Likewise, these promotional activities would also have to be done in a regular basis to maintain customer demand especially in the early stages of product distribution.

These days, new products are introduced either as a brand extension or a product extension. Brand extension, also called as brand stretching, is a well-used marketing strategy wherein the company uses an existing brand to market a new product that is usually belonging to another product category. This is usually done by companies to use sustained brand equity or a brand’s long-term sustainability and net worth to their advantage.

The effectiveness of brand extension however, depends on how consumers strongly relate to the values and goals of certain brands. In the 1990s, it was revealed that about 81% of the new products in the market were launched through this strategy. This was seen as an effective way of reducing financial risk resulting for promotional activities as well as improving the perception of consumers on core brand value. Nevertheless, companies that use brand extension as a strategy should still be focused on the successful launch and promotion of new product as this may also potentially damage brand equity or lower the value of core brand.

A new product may also be launched as a product extension. This marketing strategy paves way for the introduction of a new product serving another market segment but is closely associated with an existing product. In short, it is a new version of the parent product. Several firms have taken on this strategy to take advantage of brand awareness and brand loyalty. Normally, consumers are likely to buy a new product if it carries with it a brand name that they trust. Among the companies that have successfully implemented this is Coke when it launched its Diet Coke product.

Unfortunately, brand extension or product extension is not a recourse that all companies can use. Many companies have had to start from scratch as they come up with new and innovative products to offer the public. For these companies, it is mandatory that their managers should come up with new product metrics that they can use to assess how well the product is doing in terms of sales and market reach. In addition, these metrics will provide an accurate information support that managers can use as basis for their future actions regarding their new product offering.

What Are the Steps of New Product Development Testing?

When software programmers develop a new product, it has to be tested before it can be used in real-time applications. The testing process is not only essential to ensure the program runs smoothly, but also to check if it satisfies all the criteria and requirements requested by the customer. A reliable test run in different environments will help in further research and also to improve the performance of the product.

Moreover, it will also help build confidence and trust on the product. There are different types of software testing modules such as iterative model, waterfall model and v model.

Stage 1

The first step of a new product development testing cycle is planning or requirement gathering. All the stake holders of the software product, from the designers and developers to the managers and users come together to discuss the various requirements of the product testing. Based on the input from all the stake holders of the product, a requirement document should be prepared for reference. Application development companies generally have a separate QA team that will identify the different types of tests that need to be performed. The team will also collate all the details, create the test environment and list the various elements that need to be tested.

Stage 2

The second stage involves the design and development of a test case. From software to hardware, all the requirements for the testing process are clearly specified in this stage.

Stage 3

The third stage of the new product development testing is the coding process where the actual program is developed.

Stage 4

The next stage of the cycle is the actual testing. Application development companies make use of different testing techniques such as system testing, integration testing, development testing, A/B testing, concurrent testing and more to check the various parameters of the product.

Stage 5

It is the deployment stage when the product is given to the customer for use in real time application.

Stage 6

When the program is being used by the customer, some problems may crop up. These problems should be sorted out on a need basis. It is the final stage of the testing. This stage can also be used to determine new techniques that can be used to improve the program and enhance its performance.

New product development testing allows application development companies to set and maintain high standards for their products. The test results should be carefully recorded and maintained, and they will come in helpful while developing other products.

What Are the Steps of New Product Development Testing?

When software programmers develop a new product, it has to be tested before it can be used in real-time applications. The testing process is not only essential to ensure the program runs smoothly, but also to check if it satisfies all the criteria and requirements requested by the customer. A reliable test run in different environments will help in further research and also to improve the performance of the product.

Moreover, it will also help build confidence and trust on the product. There are different types of software testing modules such as iterative model, waterfall model and v model.

Stage 1

The first step of a new product development testing cycle is planning or requirement gathering. All the stake holders of the software product, from the designers and developers to the managers and users come together to discuss the various requirements of the product testing. Based on the input from all the stake holders of the product, a requirement document should be prepared for reference. Application development companies generally have a separate QA team that will identify the different types of tests that need to be performed. The team will also collate all the details, create the test environment and list the various elements that need to be tested.

Stage 2

The second stage involves the design and development of a test case. From software to hardware, all the requirements for the testing process are clearly specified in this stage.

Stage 3

The third stage of the new product development testing is the coding process where the actual program is developed.

Stage 4

The next stage of the cycle is the actual testing. Application development companies make use of different testing techniques such as system testing, integration testing, development testing, A/B testing, concurrent testing and more to check the various parameters of the product.

Stage 5

It is the deployment stage when the product is given to the customer for use in real time application.

Stage 6

When the program is being used by the customer, some problems may crop up. These problems should be sorted out on a need basis. It is the final stage of the testing. This stage can also be used to determine new techniques that can be used to improve the program and enhance its performance.

New product development testing allows application development companies to set and maintain high standards for their products. The test results should be carefully recorded and maintained, and they will come in helpful while developing other products.