Commercialization (commerce) can be described as the procedure of launching a totally new product in to the existing market.
An overview of Commercialization (commerce)
The final launch of the product is the last step of the new product development and involves very high expenditure. Intense marketing and advertising efforts have to be out in place which implies high cost expenditures. Prior to launching of any product in the market, funds have to be set aside to deal with this. Companies have spent up to $ 10 million on new product launches. It is important to point out that first impressions count and hence how you present the initial product in the market can either determine its success or failure. It is vital to consider many ideas so as to develop sustainability in the product that you are launching. Stakeholders and consumers are usually involved in new product development efforts.
The commercialization process usually involves certain processes in order for it to be successful. First and foremost the company has to make a decision on the timing. There product launch should be done in a timely manner. Select a time when the potential clients are expected to be receptive to it. Avoid developing a new product when the economy is hard hit. This would imply that the potential clients may not have the purchasing power required to try the new products.
The company has to then make a decision on the place where the new product launch should take place. This decision should be highly influenced by the target market that the product is aimed at. Other factors come in to play while making this decision such as; the available resource, managerial confidence levels and the operational abilities. The smaller organizations carry out their product launches progressively while the larger organizations will attack the market with a bang due to their strong financial muscle.
Through earlier research and test marketing, the target group can be identified and all efforts will be aimed at making a strong impact to this particular cadre of people. The target group should encompass all kinds of potential clients such as the laggards, early birds, users and also the opinion leaders.
The company will then have to come up with a suitable marketing mix in order to adopt the commercialization process effectively. A realistic budget has to be set aside so as to ensure that the new product launch is successful.
There are different strategies that companied have adopted in their commercialization efforts. For instance, a company that is penetrating into a new market may choose to sell its brand name first for around five years. That way, the clients get used of the name of the organization or its products. This approach is costly in terms of marketing and advertising but can provide worth it in the long run once the clients are comfortable with the particular name. Winning brand loyalty definitely requires a good amount of effort.