Product Development: What It Is and the Process Involved

Written by Coursera Staff • Updated on

Learn more about product development and potential careers in the industry alongside a step-by-step guide to the product development process.

[Featured Image] A businessman in an office is leading a brainstorming session with a team about new product development.

As a potential professional in the product development industry, your goal is to develop products that increase your company’s market share while satisfying the needs of your customers or clients. You'll need to be creative and strategic as you design and develop a product, ensuring it will benefit both your company and your customers. 

You'll use innovation and creativity to drive product development for end-user and market research. The process of developing a product consists of specific stages to keep you and your team organized and on task as you complete the specific deliverables designed to prepare the product for market release. 

What is product development?

Product development is the journey a product makes from the initial idea, design, development, and commercialization or market release to customers. It can include the creation of new products or the enhancement of older products; either way, its intended purpose is to increase market value for the company. The different stages are crucial to the success of a newly developed product. 

Why is the product development process important?

The product development process is important because, without it, the product would not have the proper framework to ensure its readiness for market release. This process is essential for the product to even begin. It guarantees increased customer satisfaction because its purpose is to enhance or design products specifically made for customers’ needs and to increase the company’s market share. The following is a step-by-step guide on product development.

Step-by-step guide to the product development process

1. Ideation

The first step of the process involves brainstorming and design thinking either for a new product or to enhance an older product. In addition to brainstorming, this is the stage where you will need to conduct market research to determine the plausibility of your new product, how it may compete with other products, and if it is in high demand. 

2. Concept development

The next stage of the process is concept development. This step refers to you and your team deciding if the product will meet the needs you are expecting it to. You may want to ideate a few different potential products to attract your target audience. You must also determine if your product is the solution to a market problem or demand. 

3. Prototyping

Your next step is to begin prototyping your product. This refers to the development of concept products that will act as a stand-in for the real thing. A prototype can be a drawing, computer rendering, or first attempt at the product; any sort of initial markup will allow you to test its feasibility.

4. First design

The first design refers to the second stage of prototyping which is a minimal viable product (MVP). The initial design will typically use the materials of the envisioned final product and will serve as a functional product that can perform all the same actions as the final product. This design can take a few tries to create as it is more realistic than the prototype.

5. Testing

Now that you have created your initial design from the prototype, you can begin testing the product. Prototypes and MVPs allow you to run tests on the products to determine if it has any issues that need fixing before their market release. You will need to ensure that your product is functional and stable for launch by checking the quality of the materials or software.

6. Final design

Once you have successfully tested your product and assured its quality level, you can create the final design. You should be continuously improving your product based on customer feedback from testing trials and market research in preparation for its official release. 

7. Product release

Finally, you release your product to the market. Ensure your customer support, sales, and marketing campaigns are all in order before launching your product. You will need to determine which channels will be most beneficial for promoting your product to the public and continue to track and measure its success after the release. 

Product development careers

Careers in the product development industry can correlate with the different specializations required of each stage in the process. Below are a few potential careers in product development, along with their average annual salaries. 

Read more: A Guide to Product Development Jobs: Roles, Skills, Salaries

Researcher 

Average annual salary (US): $64,953 [1]

As a researcher, your role is crucial to the product development process. You are responsible for studying market trends and determining when there may be a need for a certain product. You will also assess whether a specific market your team wishes to enter can support more competitors and how developing a new product will satisfy customers. 

Read more: What Is a Market Research Analyst? Guide

Product development engineer

Average annual salary (US): $119,799 [2]

Product development engineers are the ones actively designing the new product. If you choose this career, your role will be to design new products from scratch, and you will use computer software and prototyping tools to work alongside the graphic designers in developing the products. You will use data from the researchers to ensure your product will meet the customer’s needs and create 3D models and prototypes.

Product development manager

Average annual US salary (US): $148,518 [3]

As a product development manager, your job is to oversee the product development team and ensure everything is running smoothly. You will arrange the testing of prototype products developed by the engineers and are responsible for the final performance of the product at its market release. 

How to get started in product development

To begin your career in product development, you can start by researching the specific positions or careers and their prerequisites in the field that you want to apply for. Most product development companies require their managers, researchers, and engineers to have bachelor’s degrees in business, computer science, marketing, or mechanical engineering. You should be creative and analytical and have experience working in the field or certifications to demonstrate your specialized knowledge. 

You can take online programs that will provide instruction and hands-on training to hone your skills in product development and management. Be sure to develop communication and critical thinking skills and use your experience to craft a strong resume when applying for product development jobs.  

Earn Your Degree

Georgetown University

University of North Texas

University of North Texas

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Getting started with Coursera

The product development process requires a number of different skills and specializations to create or enhance successful products. On Coursera, you can explore new courses to improve upon marketing and product development skills, such as the Product Ideation, Design, and Management Specialization. This course covers how to create prototypes and turn them into viable products, as well as understand your target audience and their needs. Upon completion gain a shareable certificate to include in your resume, CV, or LinkedIn profile.

Article sources

1

Glassdoor. “How much does a Researcher make?, https://www.glassdoor.com/Salaries/researcher-salary-SRCH_KO0,10.htm” Accessed January 22, 2025.

Updated on
Written by:
Coursera Staff

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