Marketing Management

Steps in the New Product Development Process

The new product development is significant and innovative process of bringing a new product in the market place in an effective and proper manner. The main steps in the development of a new product are discussed below:

Idea generation: It is the first step in the development of a new product. As per this, new and innovative ideas are generated by conducting market research and finding the actual need, wants and desire of the customers (Kahn, 2006).

Idea screening: Basically, business organization has an “Idea Committee that examines the ideas in order to introduce a new product in an effective and proper manner.

Concept testing: It is done after the screening of ideas. As per this step, the business organization analyzes that the potential consumers understands the benefits of the new product and services (Rafinejad, 2007).

Business analysis: This is one of the most significant steps in the development of a new product. The management of the company analyzes the cost, benefits, demand, competitors associated with the product.

Product development: At this state, the management of the company has decided to launch a new and innovative product in the market (Kahn, 2006).

Test marketing: According to this step, the company brings a new product on a very small scale in a very small market.

Commercialization: If the test marketing is successful, then the organization launches the new product on a large scale to fully satisfy the needs of the customers.

Review of market performance: As per this, the company reviews the performance of new product effectively (Rafinejad, 2007).

Factor Affecting Channel Strategy

There are various types of factor that directly or indirectly affect the channel strategy. For example, nature of the market, organizational objectives, distribution expenditures, reputation of the product, payment cycle, financial and human resources are the major factors that directly affect the channel strategy. On the other hand, it should also be noted down that, these factors also influence a company’s channel choice. For instance, the nature of the market and product affects the channel of distribution. In this case, the manufacture can directly sale the goods to the industrial consumers. Financial and human resources also affect the company’s channel choice because for the large quantities of goods would need more finance and human resources (Cravens, 2010).

Factors Affecting Choice of Promotional Mix

There are various kinds of factors that affect the choice of promotional mix. For example, stages in the product life cycle, advertising, personal selling, sales promotion, public relation, directs marketing, types of product and regulations are the important factors that affect the promotional strategy. Apart from this, competitors, needs of consumers, characteristics of the target market and purchase decisions are other important factors that also affect the promotional mix (Withey, 2013).

Factors in Setting the Price For a product

Product cost, price of competitors, consumer demand, product positing, bargaining power of the customers, profit, market demand, industry standards, and business strategy are the important and significant factors that should be considered by the business organizations in setting the price for a product. All these factors directly of indirectly affects the pricing strategy adopted by the company. For if a company follow price skimming strategy, the cost of the product will force the company to increase the price. Hence, it can be said that, these factors affects the pricing strategy (Cravens, 2010).

Strategic Alternatives in Ansoff’s Strategic Opportunity Matrix

There are four alternatives in Anoff’s strategic opportunity matrix. These are discussed as below:

Market Penetration

Market Development

Product Development (Rafinejad, 2007).

Diversification

References

Cravens, (2010). Strategic Marketing. USA: Tata McGraw-Hill Education.

Kahn, K.B. (2006). New Product Forecasting: An Applied Approach. USA: M.E. Sharpe.

J Ross Publishing Series

Rafinejad, D. (2007). Innovation, Product Development and Commercialization: Case Studies

and Key Practices for Market Leadership. USA: J. Ross Publishing.

Withey, F. (2013). CIM Coursebook 03/04 Marketing Fundamentals. UK: Routledge.