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MARKETING MANAGEMENT - New Products Development Strategies

Organizational Structure and Staffing - New Products Development Strategies

   Posted On :  18.06.2018 09:44 pm

Given a clear strategy it is necessary to build the organizational capability to meet the challenge.

Organizational Structure and Staffing
 
Given a clear strategy it is necessary to build the organizational capability to meet the challenge. At times this is simply appointing a committee. Other times it is creating an entirely new team and physically separating it from the ongoing organization. Selecting the right persons for such a team is difficult.

Concept Creation and Development

 
 
Once the enabling conditions of strategy and organization are identified, actual ideation can begin. First, the team must focus on one area of interest or activity – specifically, a product category, a group of team may study floppy discs and try to improve them. Another team may try to find better ways to solve the problems of teachers. Or they may work to develop improved gold balls or golf balls or golf clubs. They may focus on their design capability and find new applications. Or they may focus on combinations of two or more of these areas.
 

Concept Development

 
 
Concept development involves asking question such as the following:
 
Need: Do customers find a strong perceived need for the benefit offered?
 
Trust: Do they believe that the new product has the benefits claimed?
 
Communicability: Do customers easily understand the key benefits being offered?
 
Usage: Does it offer easy adoption?
 
Perceived Value: Do Customers see it as offering value at the price being considered?
 
After the working area is defined, concept generation begins, often at a hectic pace. Ideas flow fast and in most cases rejection is equality fast. The team looks for the few fast and inmost cases rejection is equally fast. The team looks for the few concepts the warrant concepts development – the evolving of an original ideation attempt into a specific statement of need, form and technology that can be evaluated.
 

Concept Evaluation

 
 
Often considered the heart of the new products process, the Evaluation State is long, involved, and difficult. Evaluation actually begins when the strategist evaluates the organization’s abilities. And it continues long after a product is marketed since a product often needs revision to remain competitive. Concept testing and other prescreening marketing research prepare the team for the actual screening evaluation. This evaluation is a full, detailed analysis of the proposal. If the concept passes screening, technical development begins. The technical work produces prototypes, which can then be evaluated and if all goes well, the finished product can be prepared for use testing. Next, the team joins the new product to its marketing plan for a test of them combined – called market testing. All of the above data combine to permit a full financial analysis near the end of development.
 

Commercialization

 
 
Management’s decision that the new item is worth marketing either in a test market situation or in a full – scale launch – is called the point of commercialization. Pilot processes are then converted to full-scale manufacturing. Final design specifications are written. Marketing strategy is finalized, including actual brand, packaging, service commitment etc. The team gradually moves the company from tentative exploration of a concept into production and marketing of a new product.
 

Review and Evaluation

 
 
After launch the entire project must be reviewed to see how successful the team was, those problems they faced and what they can learn to facilitate the next project. 
Tags : MARKETING MANAGEMENT - New Products Development Strategies
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