The most important step in new product development is research and testing. Even though your product may appear as a smart idea, significant weaknesses can be revealed if you have a deeper look. For example, you may realize that there is a company that had earlier tried to release the same product but ended up unsuccessful. Additionally, when samples of a product are tested, potential dangers to users might expose. This step is also essential since you need to make sure that there is no one else that has a patent on your exact product. A patent protects your idea for a specific invention for a particular period.
Difference Between a Product Line and Product Mix
A product mix that is mostly defined as the collection of products that an organization offers compromises of both product lines and distinct product. Product mix comprises of three elements. The length which shows the number of products that a given line has. The width of assortment which refers to how many products lines an organization markets. Finally, there is the depth that touches on the number of a version that a certain product line offers. On the other hand, product line is a collection of products within the product mix which are related, either since they work the same, are sold to similar customers or are marketed through the same channels.
Why can an insignificant point of difference lead to new-product failure?
New product requires to have superior features which deliver unique benefits to the customer as compared to those of competitors. This is the only way you can attract consumers that are used to products of your competitors. However, if you fail to differentiate your product significantly, consumers will have no reason of leaving their current producer yet what they are being offered with is the same. Even though the product from your competitors lack unique features, consumers have built a strong relationship with your competitor, and as a result, your new product will not attract any customers and this the beginning of failure.
How marketing executives manage a product's life cycle
Marketing executives manage product life cycle in three ways. First, they can modify the product by changing the features such as the physical appearance and how the product performs. Second, they can come up with changes to the market by looking for new customers and carrying out activities such as the intensive advertisement. Lastly, marketing executives can position the product using an amalgamation of marketing mix elements. There some factors that can prompt the action of repositioning. The factors include reacting to the position of the competitor, exploiting a new market, keeping pace with the growing trend and altering the value presented to customers.
How do high-learning and low-learning products differ?
A high-learning product requires substantial customer education and there is a prolonged introductory period. For example, products such as personal computers require that manufacturers educate some clients on how to use them. Most of these products are unique, and competitors find it hard to imitate them and hence resolve to other strategies for competing. On the other hand, a low-learning product is one for which no noteworthy education to customers is needed, and the benefits of buying are readily understood and this result to immediate sales. This kind of product can easily be imitated by competitors, and most manufacturers engage in extensive advertising to attract customers.
What is the difference between pricing objectives and pricing constraints?
Even though supply and demand drive pricing decisions, there are other factors such as pricing objective and constraints. Pricing objective is a goal that guides an organization in setting the cost of a product or service to a possible consumer. It triggers the pricing process for a product, and it reflects the financial, strategic, and product goals of an organization. It also reflects the pricing expectation for consumers and available stock level and resources needed during production. On the other hand, pricing constraints are those activities that keep business from having flexibility in their pricing decisions such as the ceiling prices that consumers set and the break-even point of the firm.
In what ways do pricing constraints impact price setting?
Price ceiling can affect price environment in various forms. First, when there is increased competition, a firm may respond in various ways for it to remain competitive and one way is lowering the price of its items. Second, there is market demand. When the demand for a particular product is low, business tends to lower prices to reduce the amount of stock they hold, and when the demand increases, business tends to increase prices. Lastly, there is the brand strategy. Setting cost without the intensive handle of your image can affect any brand-building endeavors and hence you price your product basing on the image that your brand has on the market.
What factors impact the list price to determine the final price?
Increased demand might lead to changes in the final price hence forcing the retailers to alter the list price since they know that consumers will purchase the product. Seller information is also a factor since the dealer might go at a loss if he sticks to the list price that the manufacturer had proposed. Also, abrupt changes in the business environment play a critical role final pricing. For instance, the retailer might experience abruptly increased competition and sticking on using list price to sell the products might be the risk and hence lowering the final price remain an only option.
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