Introducing new items is a typical strategy for many organizations to maintain core capability and market share, but those organizations face a problem that can be very expensive and risky. A product is whatever that can be offered to a market for consideration, use or utilization that may satisfy a need or want. The main objective of marketing is to fulfill customer needs and need at a profit.
The reasons for a company to introduce new items can be:
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- To make the most of market opportunity.
- To fight rivalry.
- To extend overall market through division.
- To utilize excess capacity.
- To use up outdated materials.
- When an item is at decline stage.
After the organization has carefully fragmented the market, chosen target clients, different kinds of needs, advertising positioning, bringing new items is better arranged to launch new items. Each firm should create and launch new items, since they may impact the fate of the company. Clients want new items and the competitors will do anything to give them.
Key objectives of this paper is to convey a structure regarding to the new item launch.
Getting to Know the Consumers
The first thing to know is the customer needs based on the past product processes and then developing new items that address those needs. It is basic practice to acquire knowledge based on buyers’ attitudes towards the new item and their buying intention. Gathering knowledge from marketing tells the buyer intention to launch of new product. While marketing, three issues that have been well examined and are good for future:
- Buyer Innovativeness. Those are divided into socio-demographics and psychographics. The first one studies about how old the buyer is, what the salary is, highest level of education, and so on. The latter include about recognition of the brand, confidence on themselves, value and so on. The feature of new product should match what the buyer use to assess a new item.
- Development of new products. Nowadays, the main objective of the managers is growth and most of the organizations launch new items in the market for growth. We can see the development of new items can be critically determined by the preference of the buyer to adopt them.
- Network externalities. The feature of adopting new products can have an impact from network externalities. This exist only when more buyers adopt the new item and the utility of the item got increased. It can be direct and indirect. If the utility is increased by the other buyer of same item, then it is direct network externalities. If it’s got impacted by other buyer of other item, then it is indirect network externalities.
Getting to Know the Organization’s Perspective
Till now, we were looking for the buyer needs and wants, now we will see from the organization’ view of point for the launching of new products. There can be different factors influencing the ability of the company.
Resources
It has been seen that the main element that drive an organization is resources. Communication is the basic requirement for sharing and gathering the data related to marketing, environment which helps with new ideas for the new product within a firm.
Environment
Organization must gather data and opportunities through innovation so that they can use launch of new items as a protective shield to defend themselves from uncertainty. A competitive market will always make you seek new ideas, look for better way to compete and understanding the survival method that can be a launch of new products in the market.
Demographics
The innovation level is influenced by the demographics. But as the company grew old, they get addicted to keep the same method of doing the work and don’t welcome any new changes, but this same thing can be seen in new firms also because it can impact the resources.
Structure
The structure can be seen as the footsteps which is kind of mandatory for the innovation process to be complete. There should be complexity in the firm to see the change which is required, promotes new ideas and group discussion among the employees.
Conclusion
Introducing new items in the market by the firms is very common tact to keep a good share in the market and also give a competitive advantage over the others. The three factors which are buyer innovativeness, development of new products, network externalities should be checked and identified to make a better future of the firm. The firm should make some really important decisions regarding the launch of new products which bring the factors that promote the firm’s capability in introducing the product those are resources, environment, demographics and structure. To conclude, the new product launch consist of various things which can be decisions, strategy, actions which highlight the context of launching of new products and the operational approach.
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