In-depth research and analysis needs to be conducted on other companies that have created similar successful programs. They need to determine what the breakeven point will be, and when these new products will start generating a profit and then make the decision on whether or not it’s worth the investment. Issue 5 Lack of planning CanGo is in rapid development, but at the same time lacks of any sort of planning. CanGo's management team cannot seem to reach a viable solution for the future development of the company. Recommendation 5 CanGo needs to make a comprehensive analysis and then decide on a long-term development plan.
This process is essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from the SWOTs. Marketing Strategies One of the first steps in the consideration of new product development and penetration of new product development is to analyze the market opportunity. Basically, we need to find out whether or not this venture is worth it. Our engineering team will need to determine the technical feasibility of the product idea. Once this is complete, our marketing team will need to determine the idea’s prospects in the marketplace.
Without prior market penetration of an organization’s competetitors, the usefulness and effectiveness of properly marketing a new product or service can be quite burdensome. This is due to the fact that an organization runs a major risk of constantly striving to maintain its customer base, as the new type of product or service has not yet been introduced into the maintstream. Additionally, pricing may be an issue based upon: Should pricing be very low to attract new buyers?, or Should pricing be set high to offset initial entry into a new marketplace? These are the questions that an organization must face, but for the most part, being a
First, the reactors are more of the go-getter, they put the product out first. This could be both positive and negative, you want to be able to get a head start but if consumers aren't willing to buy then sometimes you won't make profit off of certain products. "Prospector competes primarily by stimulating and meeting new market opportunities, but may not maintain strength over time in all markets it enters" (Muller pg 28). The prospector is always ahead of the game and is willing to re-structure if necessary to continue to be a top
Also how these areas will play an important role and if any additional area of research is needed. Importance of Marketing Research The best way for
The pricing will be decided based on the demand for the product. Bury will focus on pricing the reader at the highest possible price to ensure sale of all available product. Due to the lack of competition, Bury does not have to worry that consumers will find a similar product elsewhere, therefore he can charge a higher price to maximize profit. Under a monopoly the pricing is elastic, which means that Bury offers a luxury item which the consumer will want to contemplate before buying. Also, Bury can change pricing based on demand which is inelastic.
Making sure that product is manufactured on time (taking into account any delays that may arise from overseas manufacturers) and ready for distribution when the consumer needs it. It is very hard for the dealerships to be able put their names behind a product that is difficult to keep in stock as todays consumers are on a “I want it now” basis. The advantage to this strategy is that if you have marketed and advertised properly, there will be demand at the dealerships from your product. If you are able to keep the dealerships properly stocked, then they will be pleased, as well as the customers and you will make your money back from all that costly advertising. A disadvantage would be that it will take resources to be able to keep items in constant stock and staff to ensure that logistics is running
Without customers, there is no business or sales. Without sales, there is no reason to create new products or services. These are just a few reasons marketing is an important factor in the success of a business. Marketing is the process that a company performs to get the word “out” about new products and services. Notifying potential customers through advertising and promotional sales provides current sales of products and increases the future success rate for the company.
Defining Marketing By Robert Kearney MKT/421 July 2, 2012 Robin Reis The product will move slowly through the product introduction phase. This is an important phase because it is used to make the public aware of the new product and answer as many questions about the product that that the company anticipates the public will ask. This period is used to develop a market for the product and sell consumers on the brand. During this phase the company has time to develop the product and address any manufacturing issues and consumer wants and desires for the product. If the introductory phase is conducted successfully the product will grow quickly but move slowly through the growth stage.
Just as physical products are open to innovation and change, so are new services. An example of this type of innovation is Frederick Smith who is the American entrepreneur responsible for the multi-million dollar international company, Federal Express. He created a new and better way of moving packages between people. New services, like physical products can also have positive movement due to branding. It is beneficial for entrepreneurs to think more along the lines of all product and service aspects instead of in silos and just thinking about producing “products” alone or “services.” That concept is imperative for entrepreneurs to understand as customer service can be added as an additional component as well to a physical product.