Marketing Essay Sample on New Product Development

Part I: Introduction

The new product development (NPD) is a process, which organizations carry put as they prepare the launch of new commodities in the market (Bhuiyan, 2011, p.748, para.1). With proper planning and coordination, it is possible to go through the new product development launch successfully within the first trial. This is because there is a coordination of the resources of the organization in the right direction, making the marketing department avoid making costly mistakes (Burnett, 2008 p.12 para.3). Hence, the pricing will be within the range of other products in the market while the design will be attractive, enough to catch the attention of potential customers (Burnett, 2008 p.8 para.4).

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Order now

Part II: Discussion

Critical Consumer Marketing Dynamics

One of the most important considerations is the identification of the market needs by conducting research (Loch & Kavadias, 2008 p.30 para.4). This means that designing products will be easier since the marketer already has an idea of what the market needs and will also modify the product to surpass the needs of the customers. Conducting customer surveys online and through physical means will help identify specific requests and desires of customers, which acts as a feasibility study on the market trends. Developers of a new product must consider the industry within which they operate, as well as the strength and influence of the firm, and the process of implementing the item in the market (Loch & Kavadias, 2008 p.1 para. 2). The process differs across industries and firms since it should match the resources of the company and needs of the target market (Bhuiyan, 2011 p.748, para. 1).

Methodology to Launch a Consumer Cereal Research Project

Launching the cereal product will adopt the conjoint analysis method, which is a statistical technique. This method determines how perception and attributes of individuals affect the value attached to a product (Green & Srinivasan, 1990 p.3 para.2). Therefore, it will focus on the perceived and actual benefits, the special features that make the product stand out in a market full of substitutes, and the functions of the commodity. Data collection will involve introducing a research survey, which will facilitate the experimenting process. When performing a survey, it is important to consider the size of the sample, which forms part of the target market, and the accurately analyzing

The methodology adopted in launching a cereal research project requires the careful examination of the market, then adopting a model in the project that will help address the specific needs. This means that the marketer will align the identified needs of customers with the objectives of the firm. Over the years, scholars have conceptualized different models used in NPD. However, the BAH model represents the idea development until the last step of launching a product in the market, which the new cereal product can embrace. Hence, the marketers need to link the process of NPD to the core functions and objectives of the firm. This becomes the applied strategy which will guide the entire process. The strategy adopted helps in the generation of an idea of what the new cereal product wants to fulfill after the successful implementation. This is a brain-storming session where marketers suggest possible ideas but have to single out suggestions that will work with the new product (Bhuiyan, 2011 p.749 para.2). Screening of ideas allows the market focus the attention and resources on one or two suggestions that have a high probability of generating better results.

The critical features needed to fit the multiple market segment is identifying the needs of each potential customer and designing products that will satisfy their demands. It is important to understand that customer needs are diverse depending on the economic status, availability of competitors in the market, and pricing. The best target audience depends on the results of the feasibility study and identification of the needs of a market. Data collection will involve handing out questionnaires in the targeted market segment. A maximum of ten questions will capture all the areas the cereal marketer needs to know about the potential market. Respondents will take a short time to answer the questions which will allow the marketer distribute and collect a large number of the responses (Al-Azzam, 2014 p86 para.1). In addition, the online surveys will supplement the data collected through the questionnaires. This will target the online users and their preference to have their products delivered to their premises. For instance, social media marketing reaches a wide audience (Hawkins & Mothersbaugh, 2013. p.6 para.2)

The desired results for the client company will be information about the buying patterns and pricing that customers are comfortable with to avoid overcharging or undercharging (Loch & Kavadias, 2008 p.231 para.1). The information collected will also contain the preferences of customers and their perceptions towards a new product in the market. The economic and bargaining power of customers will also be important for the client company as it will determine the packaging and weights to offer to the customers. The information collected will also help the marketer determine the best option for advertising the goods to the market, and positioning the products in the market, which has substitutes.

Scope of Research

The scope of research will cover the highlighted stages of an NPD while focusing on the cereal product. This will help specialize in the needs of the specific target market. The target customers are within the locality, which is important to understand the buying patterns, economic strengths, the presence of competitors, and pricing. The evolution of technological ideas in NPD allows companies to have a competitive advantage (De Meyer & Loch, 2008 p.28 para.4). There is also the need to evaluate ways to improve the channels of distribution that the product will use after the successful implementation. Communication at all stages of the NPD process is important as it helps all marketers understand the results of their input, as well as identify solutions to issues that may arise during the generation of ideas.

Part III: Conclusion

In conclusion, it is evident that price is one of the factors that attracts or retains customers since they compare with the competitors (Al-Azzam, 2014 p.84 para. 1). This means that the price offered in the initial stage should accommodate both high and income earners. It is also important to set up a price range with the aim of accommodating the different economic strengths of all customers. Al-Azzam (2014 p.83 para. 1) argues that a positive relationship exists between the consumer purchasing decisions and their reference group. A reference group is a person or group who influences purchaser's buying behavior patterns. Therefore, the beliefs, attitudes, values, and norms of a group affect the thinking and perception of a customer before deciding to purchase the cereal product. When the client marketer identifies the reference group for its potential customers, it will influence more people to purchase items.

References

Al-Azzam, A. F. M. (2014). Evaluating effect of social factors affecting consumer behavior in purchasing home furnishing products in Jordan. British Journal of Marketing Studies, 2(7), 80-94.

Bhuiyan, N. (2011). A framework for successful new product development. Journal of Industrial Engineering and management, 4(4), 746-770.

Burnett, J. (2008). Core concepts of marketing.

Green, P. E., & Srinivasan, V. (1990). Conjoint analysis in marketing: new developments with implications for research and practice. The journal of marketing, 3-19.

Hawkins, D. I., Mothersbaugh, D. L. (2013). Consumer behavior: Building marketing strategy. McGraw-Hill Irwin.

Loch, C. H., & Kavadias, S. (2008). 1 Managing new product development: An evolutionary framework1. Handbook of New Product Development Management, 1.