CHAPTER 2: LITERATURE REVIEW 2.1 Literature review 2.1.1 Product launch process Product launch not only helps company increase the sale revenue but also expand their customer base by targeting new segments. A successful launch involves the contribution and collaboration of all departments, from R&D, Logistic, Sale, Marketing and so on. There are many elements affecting to the success of a launching. The basic factor is to develop product that satisfies consumers’ demands and maintain the brand promise. However, consumers are not only looking for the quality of product but also concerning about the price, the promotion and so on. To successfully launch new product into market, company should master product launch process. There are many concepts …show more content…
It involves the vital process of researching, promoting and offering products or services to a company’s target market. Marketing is an important business process where the company can inform, attract and convince people that its products or services are of value to them. Without Marketing, many businesses would be unable to exist or operate well in the market. They could offer the most amazing product or service in the market, but if nobody knows about its existence or understands its value, these companies are unable to make a single sale thus they may have to be out of …show more content…
The research on consumer behavior assists the organization recognize and forecast the purchase behavior of the consumers while they are purchasing a product. Thus, the study of consumer behavior helps the marketers not only to understand what consumer's purchase, but helps to understand why they purchase it (Kumar, 2004). There are a lot of elements which can influence the purchase decision of consumers such as social influences, cultural influences, psychological factors and personal factors (Super Professeur, 2011). Understanding these factors helps the company to market the product on right time to the right consumers in order to generate more profits. On the other hand, if the marketers fail to understand these components that might influence consumers, they will fail to convince the consumers to purchase that product or will fail to meet the demands of consumers. However, consumer behavior is one of the stimulating and challenging areas in marketing studies being a human activity focused on the products and services. Thus understanding the behavior of the consumers is a great challenge. Moreover, it is not easy to get a full picture of consumer behavior as customers make plenty of different buying decision every day and they usually do not know exactly what influences their purchase. In short, basing on all
We also focus on product life-cycle of the business goods. The stages the product undergoes from manufacturing packaging until the final stage where it focuses on time, cost and revenue generated. In the initial stage of the product, promotion is done to create awareness of the product. In this juncture profits are not a big concern of the company.
Entering a new market is always a big challenge. And a company should pay attention to how its market strategy can be perceived by the customers and influence their awareness and loyalty to the products.
To start off, launching the product by analyzing the behavioral aspects of the public, was a calculated metric to decide on the launch. Then targeting the deepest strata of Social influencers,
Product lifecycle management can supply a good line of communication between all sections of product development. This results in seamless data capturing and supply, analysts’ and those working in the development sector can co-ordinate with people in marketing to ensure that ideas such as marketing strategies which might boost sales are utilized and not overlooked [2]. This approach could include improving the product and re-launching the “new improved” version, although this involves a cost to the company [2].
However, this vision generates an overlapping problem between the marketing department and the product development department. The marketing department, among other duties, is responsible for the identification of new opportunities and also to assure the development of new products. Unless these activities are extremely well coordinated with the product development department, there will be misalignment in the strategy of the EPD. Ultimately, this misalignment will affect a third department, i.e. the manufacturing department, since it is directly involved in the product development process.
In product development strategy, a company tries to create new products and services targeted at its existing markets to achieve growth.This involve extending the product range available to the firm 's existing markets. These products may be obtained by:
In meeting the demand of product-specific, product managers must be able to address product requirement, product life cycle management as well as to monitor the daily execution of the production team (for instance, design, progress). As for market-specific, managers of product department have the responsibility to provide training and education awareness in explaining the product features to internal stakeholders and consumers, to perform competitive analysis, product position and launch campaign such as social media marketing.
Market is changing all the time and product differentiation is the only factor that maximizes the firm’s profit. But once-off expenditure on product differentiation is not enough to maximizes the profit. When the market is changing, the demand, taste and preference of the consumer also changes. So, the firm should make the product differentiation according to the demand, taste and preference of the consumer. Unique product alone doesn’t guarantee higher sales and maximizes profits. In any market, a product must satisfy the wants, taste and preference of the consumers.
In order for a new brand to establish itself in its market and for its
While planning is an important part of any successful campaign, there are some considerations which are vital to the successful launch of a product domestically and globally. Some instances are identified in the following table:
emerging or new market. It can originate from new technology or new market opportunities (Eliashberg, J., Lilien, G. L., & Rao, V. R. 1997). Literature defines product development as exploiting an untapped market opportunity and turning it into a value product for customer satisfaction. Development and introduction of a new product requires extensive research on understanding customer needs, market structure, emerging trends and analysing the internal & external competitive market environments. To evaluate customer satisfaction previous researches provide strong relationship between customer satisfaction and product quality, product features and value for money. ***
First of all, product strategy. It is absolutely important to plan strategically, as in a long-term product strategy. One possible definition of strategic planning is ‘the company’s plan for long-run survival and growth that makes the most sense given its situation, objectives, resources and opportunities.’ (Brooks,J.R. 2004) In order to increase the acceptance of our products, we need to increase product differentiation.
The main objective of this report is to develop and provide a sales and marketing plan for which the company will help to generate more profit and acquire more customers to patronize the product. This report will cover the period of 2016 to 2017 which will serve as guidelines that needs to follow of the employees, managers and management team to reach the desired goals and target for the company.
When a business aims to be as successful as possible in selling its products and services, it must examine in detail whether or not the products will be attractive and necessary; if the price is optimal; if the product is being distributed in the best locations; and finally, how interest and awareness can be created for the products. In order for a business to target all of these elements at the right people at the right time, it must employ the right type of marketing mix: Product, Price, Place and Promotion.
It is important that the marketing department functions well with research and development, production, and finance. In conjunction with the research and development team, marketing should add input concerning when products are launched and whether old products need to be repositioned. Production works with marketing to forecast future unit sales and subsequent areas that are affected by unit sales, such as contribution margin. Besides the research and production divisions, marketing also works with finance to create sales projections and the marketing budget (Art