A product development strategy is a plan that sets the direction and focus for new products or the steps to revise existing ones. It includes objectives and goals, funding, marketing and market penetration tactics. The process covers product development stages across the entire product lifecycle, from idea generation and development to testing and launching to customers. A product development strategy joins up existing market and customer research data, and the marketing strategy and business strategy with the product development cycle, resulting in a high-level guide for activities.

A product development strategy is crucial for several reasons. It can improve product sales, business growth, support moves to new markets, diversify the product portfolio, and enhance the customer experience. For start-ups, a product development strategy lays the foundation for future activities, while for larger organizations with a more mature product portfolio, it helps them to identify new opportunities to leverage.

The steps involved in product development are similar in each type of strategy. They include identifying a product concept, seeking market feedback about the idea, creating a prototype, preparing marketing and sales campaigns, building the product and releasing it to customers, and making adjustments based on market feedback.

In summary, a product development strategy is a process of bringing a new product into an existing or new market by doing continuous market research, thorough testing, and creating a plan that sets the direction and focus for new products or the steps to revise existing ones.