After concept testing, a firm would engage in which of the following stage in developing and marketing a new product?
Marketing strategy development
Understanding the New Product Development Process
The question asks about the next step a firm takes in developing and marketing a new product immediately after the concept testing stage. The development and marketing of a new product typically follows a structured process involving several key stages.
Stages in New Product Development
The generally accepted stages in the new product development process are:
- Idea Generation
- Idea Screening
- Concept Development and Testing
- Marketing Strategy Development
- Business Analysis
- Product Development
- Test Marketing
- Commercialization
Let's look at the stage that follows Concept Development and Testing based on this standard process.
Analyzing the Stages and the Question
The question specifies that the firm has just completed concept testing. In concept testing, potential customers are shown the new product concept to gauge their reactions and determine if the concept is appealing and meets customer needs. This helps the firm decide whether to move forward with the idea.
Following successful concept testing, the next crucial step is to develop a detailed marketing strategy for the product. This stage is known as Marketing Strategy Development.
- Marketing Strategy Development: This stage involves designing an initial marketing strategy for introducing the product into the market. It typically includes three parts:
- Describing the target market, the planned value proposition, and the sales, market share, and profit goals for the first few years.
- Outlining the product’s planned price, distribution, and marketing budget for the first year.
- Describing the planned long-run sales, profit goals, and marketing mix strategy.
Let's consider the other options provided:
- Test marketing: This stage comes much later, after the product has been physically developed. It involves testing the product and the proposed marketing program in realistic market settings.
- Business analysis: This stage follows marketing strategy development. It involves reviewing sales, costs, and profit projections for the new product to find out whether they satisfy the company’s objectives.
- Product development: This stage also comes later, after the business analysis. It involves developing the concept into a physical product.
Based on the sequence of the new product development process, the stage immediately following concept testing is Marketing Strategy Development.
Sequence Summary
| Stage | Follows | Precedes |
|---|---|---|
| Concept Development and Testing | Idea Screening | Marketing Strategy Development |
| Marketing Strategy Development | Concept Development and Testing | Business Analysis |
| Business Analysis | Marketing Strategy Development | Product Development |
| Product Development | Business Analysis | Test Marketing |
| Test Marketing | Product Development | Commercialization |
Therefore, after concept testing, the firm would engage in the marketing strategy development stage.
Revision Table: New Product Development Stages
Here's a quick look at the relevant stages in sequence:
| Stage | Key Activity |
|---|---|
| Concept Testing | Testing new product concepts with target consumers |
| Marketing Strategy Development | Designing an initial marketing strategy (target market, positioning, marketing mix) |
| Business Analysis | Reviewing sales, cost, and profit projections |
| Product Development | Developing the concept into a physical product |
| Test Marketing | Testing the product and marketing program in realistic markets |
Additional Information on New Product Development
The new product development process is crucial for a firm's long-term success. Each stage serves a specific purpose:
- Moving through the stages helps filter out poor ideas, reducing risks and costs.
- The process ensures the company considers the product's market potential, profitability, and the best way to reach customers.
- Skipping stages can lead to product failures, wasted resources, and damage to the company's reputation.
- While this is a general model, firms might adapt or combine stages depending on the industry, product type, and market conditions.
Important Questions from Marketing: Concept and approaches
Arrange the following stages in the marketing process of an enterprise:
A. Marketing Mix
B. Marketing program implementation
C. Marketing planning
D. Market research
E. Control and evaluation of marketing programs
Choose thecorrectanswer from the options given below:
Statement (I): The mindset which is commonly associated with a long-ago era when the demand for goods generally exceeded the supply, and the primary focus in business was to effectively produce medium quantities of products; finding the customers was viewed as a relatively major function.
Statement (II) : The firms with product orientation typically focus on the quality and quantity of offerings while assuming that customers will seek out and buy reasonably priced well-made products.From the above statements indicate the correct code of being statements correct or incorrect The statements relate to concepts of marketing.
The ability to change human needs into wants is called
_______ believes that the consumers will favour those products that offer the best quality, performance and features and therefore the organisation should devote its energy to making continuous product improvements.
The model of the modern complex marketing system outlines that _______ participate(s) and facilitate(s) a firm’s marketing function.
