Stage 7: Test Marketing

Test marketing seeks to introduce the new product on a very small scale in a small market in order to validate the new offerings. If the new product is successful in this market, then it is introduced on a large scale. However, if the product fails in the test market, then the company finds out the reasons for its failure. It makes necessary changes in the new product and introduces it again in a small market. If the new product fails again, the company will reject it. Test marketing reduces the risk of large-scale marketing. At that stage, test marketing gives an essential consumer feedback.

Stage 8: Commercialization

If the test marketing is successful, then the company introduces the new product on a full-scale. The company produces and distributes the new product on a huge scale. The new product launch is accompanied by an advertising campaign on mass media such as TV, radio, newspapers and magazines, or social media. As the new product enter the market, it is necessary to ensure a regular consumer feedback in order to achieve complete customer satisfaction.

Stage 9: Review of Market Performance

The company must continuously monitor the market performance of the new product and review its marketing plans and strategies if necessary.

Tools such as Stage-Gate processes, Quality Function Deployment, Design for Manufacturing, and Computer Aided Design/Computer Aided Manufacturing may be useful on different projects in the NPD process (Schilling and Hill 1998).

< Prev   CONTENTS   Source   Next >