Home Page
> Research and Development
-
Stages
-
Topics
-
Audiences
-
Information
Critical Assessment Factors for New Products
Last Verified:
2007-07-06
Summary
If you are either inventing a new product or considering developing a new product to add to your existing product lines, there are a number of critical factors to consider in assessing how practical this is. The following is a listing of several factors you should consider:
Technical Factors
Function |
To what limits will your product function as you have designed or intended it to do? |
Production |
Can your product be produced at a reasonable and beneficial cost? |
Societal Factors
Legality |
Is your product subject to any laws that limit, restrict, control, regulate or ban such things as production, ownership, distribution, or operation of the product? |
Safety |
Is your product dangerous; even if it is used properly? |
Environment |
Will your product contribute to degradation of our natural resources? |
Quality of Life |
Will your product generate a net benefit to society? |
Marketing Factors
Potential |
Is your share of the total market adequate for viable business activity? |
Price |
What degree of price stability can be reasonably anticipated for your product? |
Penetration |
Is there adequate revenue potential in a reasonable time frame to justify the effort required? |
Predictability |
Will changes in market demands be evident in time for adequate management decisions? |
Dependence |
Does your product depend on the sale of other products to be a success? Would demand for your product fade if other products were removed from the market? |
Demand Curve |
Will the demand for your product last long enough to enable you to make a reasonable profit? |
Development Potential |
Can your product result in a family of products from which you can profit? |
Compatibility |
Does your product harmonize with current behaviour patterns and ways of doing things? |
Learning |
Can customers easily understand the correct use of the product? |
Need |
Does your product solve a pressing problem or fill an urgent need for the customer? |
Visibility |
Are the advantages and benefits of your product self-evident when the customer hears about your product? |
Promotion Cost |
Will the cost of promoting your product be reasonable in relation to production cost? |
Distribution |
Will your product fit easily into established distribution networks, or will it stand alone? |
Business Risk Factors
Appearance |
How does the customer judge the appearance of your product versus the alternative? |
Function |
Does your product work better than the alternatives? |
Durability |
Will your product last longer than others? |
Service |
Will your product require less routine service than the competitors? |
Price |
Do you have a price advantage? |
Existing Competition |
Is there a serious competitive threat in the market already? |
New Competition |
Can you anticipate significant, new competitive elements in the near future? |
Protection |
Does there appear to be a potential to protect your product through patents, trade secrets or other means in a way that is commercially worthwhile? |
Stage of Development |
How much additional effort and resources are required to bring your product to a marketable or a license ready state? |
Research and Development |
What magnitude or complexity of applied development will be required to sustain your product in the marketplace? |
Marketing Research |
What magnitude of effort will be required to define the product, place, price and promotion that the whole marketing channel finds acceptable? |
Marketing Investment |
Is a much larger investment required to bring the product to market? |
Payback Period |
Is the time required to recover your investment shorter than the peak demand threshold? |
Profitability |
Is there real potential to generate adequate profits to make the venture viable? |
Commercialization
License |
Does your product have more potential and greater returns in the form of royalties or assignment fees? |
Existing Business |
Can your product be suitably commercialized from within your own existing business? |
New Business |
Would commercial advantages be served if your products were used to establish a new business? |
Part-Time |
Could you effectively manufacture and sell your own product on a part-time basis? |