Product development is the process of creating a new product or improving an existing one. It involves several stages, including idea generation, market research, design, and testing. The goal is to meet customer needs and preferences while ensuring the product is feasible and profitable for the company. During product development, teams often use tools like prototypes and focus groups to gather feedback. This helps refine the product before it is launched in the market. Successful product development can lead to increased sales and customer satisfaction, making it a crucial aspect of business strategy.