The Need to Develop Newer Products and Services - Essay Example

? Assignment Individual assignment/ Case study in Advertising Effectiveness Contents Contents 2 Introduction 3 Sketching Success for the Product Produced 4 Feasibility Analysis of a New Product 7 Marketing Mix Strategies 10 Sales Forecasts along a Three Year Time Period 11 References 13 Introduction The need to develop newer products and services emerges for the companies as the product life cycle for the existing products and services portfolio starts showing a declining trend. The quality of the products and services can also be enhanced based on certain evaluative stages which can be divided along four main parts. The first part is focused on developing the right product or service by endeavouring to assess the needs of the customers through considerable market research activities. Herein the views of the customers are gained through the conducting of interviews or through the reviews and complaints generated at different stages. These views thus obtained are tracked along the demographic characteristics of the population in the region to understand the effectiveness of the products produced. Through the above process the features of the product and services produced are matched to the desires of the customer profile in the new and existing markets. The needs of the customers being successfully assessed in the first stage the second stage proceeds where the manufacturer or producer plans to device the right product to meet the stated needs. In that effective planning is needed to be rendered to design a feasible production process which would help deliver adequate quantity and quality of the product in the market however at reduced cost. Further the third stage commences where the producer or service provider is required to design an effective process for the successful accomplishment of the above objective. In that the several functions adhered to meet the desired ends is properly evaluated to help gauge the bottlenecks that may emerge in due course. Strategies are underlined to help in the proper countering of such obstacles. In this stage specific targets are also set which act as benchmarks and are used to measure the effectiveness of the processes underlined. Finally in the fourth stage of the planning process the available resources and organisational systems are properly tuned to help in the steady fulfilment of organisational objectives. (Finch, n.d. p.131-140; Monczka, 2000, pp.1-9; Perreault, 2006, p.288-289). The age of information technology has made the need for typewriting machines quite obsolete. However as the marketing director of a computer peripherals manufacturing company I worked on the concept of developing a typewriter which would have other additional features to compete in the information technology market. This typewriter developed would meet the needs of both business and would also enhance the educational and domestic work processes. (ibmtypewriters.com, 2010). Sketching Success for the Product Produced To evaluate the parameters of success for the new products produced the product developer is required to function on the following parameters. Firstly it is required by the product developer to conduct large amount of campaigning and promotional activities to help in the effective introduction of such in the new marketplace. Secondly the product producer is then required to render small samples in the market place to help the consumers have the initial feel of the product. Rendering of free samples tied with existing products would help the customers have the feel of the product or service who can proceed to make the initial purchases. In the third case the rate at which the consumers tend to make repeated purchases of the same measured along certain time periods. In the fourth case the revenue accruing from per unit sales of the products is also measured which helps to generate a quantifiable image of the success of the product or service in the market. Fifthly the success of the product in the market can also be measured in respect to the increase in market share of the product or service company in the external market. Sixthly the product developers need to reduce the cost at the different stages of the operational paradigms and also in marketing and promotional domain to enhance the profitability. An efficient return obtained on the investments rendered measured along a period of time effectively reflects the success of the product in the new market. (Clancy, Krieg & Wolf, 2006, p.76; Meyer, 2002, p.179; Brown, 2005, pp.388-389). The region of United Kingdom is identified as the target market for the marketing of the new age typewriters developed by us. Considerable amount of market research activities show that demand for typewriters in United Kingdom are gradually rising owing to the development in the product features making it compatible to the computers. Again people in this region tend to prefer these products owing to the accessibility to better quality at reduced cost. Innovative typewriters produced in foreign markets like Japan are gaining a huge market in United Kingdom. (Hallows, 2008). After conducting the market research the planning for promotion and advertising activities is commenced for three types of markets in United Kingdom viz. commercial, domestic and educational institutions. The promotional and advertisement activities are rendered to highlight the enhanced features of the innovative typewriters in the targeted markets and also to reflect the cost efficiencies in such. The promotional and advertisement campaigning was developed based on both print and visual media to gain the attention of large number of consumers. Different leaflets were prepared showing the pictures of the innovative typewriters which were given to the separate target groups. This helped in creating the first phase of introduction of the same to the potential market. Further samples were generated for the same to both the commercial and educational institutions at reduced prices which helped in ease of market penetration in United Kingdom. The investments rendered in regards to the advertisement and promotional activities are monitored on the basis of the revenue being generated at different stages starting from introducing the products in the market to the growth at maturity stages. This process helps in understanding the return on the amount of investments rendered. Successful promotional and advertisement campaigning helps in enhancing the revenue and market share of the products in the market. The same can be reflected through the generation of a graph as follows. Figure 1 (Source: Iamratanakul, Patanakul & Milosevic, 2008,p.177). Marketing plan that was devised also focused on reducing the cost of operations and other transactions to help enhance the profitability factor. The distribution and research and development departments were instructed accordingly to devise means to help in the better accessibility of the products to the ultimate consumers, however at reduced cost. (Iamratanakul, Patanakul & Milosevic, 2008, p.177-178). Feasibility Analysis of a New Product The feasibility analysis in regards to a new product tries to assess the effectiveness of such in meeting the needs of the customers in the newer markets. The feasibility analysis of the product can be conducted by the product or service provider mainly depending on two aspects. The assessment of the product done in the market focusing on the conceptualisation part of it helps to serve three main purposes which can be underlined as follows. In the first case of the feasibility analysis the concept for the product is assessed depending on the desires of the consumer. To test the above condition effective processes are rendered in which the views of the consumers are gained through conducting interviews on phone or at personal levels by dividing the entire population on focus or target groups. Effective conceptualisation is possible for the products produced only if the feature of the produced matches to that of the desires and interests of the final consumers. Feasibility study generated based on assessment of conceptual effectiveness is also rendered through the evaluation of the market share. This analysis helps in understanding the effective area which the product produced has efficiently gained to help the business organisation gain potential revenue. In the second stage of the feasibility analysis the manufacturer hovers around the physical development of potential models to help the customers have a feel of the benefits accruing from the same. This stage of feasibility also gains the views of the internal people who suggest on the right designs of the products and services. Tentative designs are rendered by the research and development team and tested in the external market. Thus the final designing of the product or service requires an expanded time period in which several models are spontaneously developed and changed to render effectiveness. Potential research is rendered in this stage where the products or services produced are rendered into an external market area such that the views of the customers can be tested to render considerable modifications in the same. These types of modifications would help in expanding the utility of the same in the external market. Feasibility analysis of the products produced conducted at the utility level can be further innovated by the product developers through the rendering of special team of people who would conduct visits to the homes of the people having bought such product or availed such services. These groups of people on paying visits to the homes would mainly divulge to understand the level of effectiveness and utility generated by the product to them. These people also endeavour to draw in potential information as to the requirement of any changes to be brought about in such produces to help enhance its utility paradigm. (Barringer, 2008, p.57-59; Baron & Shane, 2007, p.105; Sorli & Stokic, 2009, p.19). Feasibility structure prepared for the typewriters produced depends on evaluating the marketing conditions and thereby enhancing on the product paradigms through the working of the research and development teams and other marketing and distribution systems. To make a new entry in the existing market for typewriters in United Kingdom sophisticated features are enabled in the machines which would conduct automatic spelling checks and also perform required corrections. The typewriters developed would also help the writer to develop the manuscript through the rendering of automated formats thus helping the writer to better focus on the body. In the process of feasibility study generated firstly the entire market is divided into several target groups such that each of these groups reflects a separate demand scenario. Further technological and economical parameters are also evaluated and enhanced to counter the competition in the external market. The entire process of development of the typewriters is completed through the testing of the samples produced in the target markets. However the cost factor pertaining to the research and development activities and other marketing and distribution functions are reduced through the rendering of economies of scale by manufacturing the products in large numbers. Effective designs are also rendered to make the products portable and more users friendly which would help address the marketing research needs. Feasibility analysis in regards to the typewriter products also ponder in countering the marketing challenges which require sophistication and major innovations to be rendered to help address potential needs of the developing market. The entry of the company in the market by producing innovative models would help accrue certain potential business advantages in respect to the competitors measured in terms of manufacturing costs. The following graph would considerably reflect the above situation. Figure 2 (Source: Iamratanakul, Patanakul & Milosevic, 2008,p.178). Marketing Mix Strategies The marketing mix strategies based on 4 Ps must be devised by the product producer to enhance the utility aspects of the same in order to gain the recognition of large number of consumers spread along a larger geographical base. The four Ps of product marketing which needs to be properly addressed constitute elements like product, price, place and promotion. In regards to the first paradigm the companies need to adequately manage the innovation paradigm rendered along with working to formulate licensing agreements with effective business partners. Moreover product producers are also required to work on patents and trademarks to protect the ownership rights of the innovations rendered. Further activities closely related to the product parameter hint on enhancement of the branding and packaging aspects to help cultivate a more attractive image of the products in the eyes of the consumers. (Trott, 2008, p.33). The typewriters produced consist of additional features which would help the writer in making automatic adjustments to the literary works. Similarly the writer can also get the reprint of the same write up from the typewriter when needed. The typewriter can be innovated to render automatic formats to the writer while writing letters and reports. (ibmtypewriters.com, 2010). The producer or manufacturer is also required to set the prices in such manner as to generate optimal margins for the same when marketed along the different distribution channels. Pricing techniques in regards to the typewriter involve rendering the products at low price points to penetrate large market bases. This would help the company in generating huge revenues. (Kelly & McGowen, 2010, p.202; Michael, 2010, p.135). Focusing on the promotional aspects the producer of the goods and services must adequately work through the media and advertising firms to help generate a larger market for the products. This cultivation of a larger market base would help the firm in drawing high amount of revenues from the market. Promotional campaigning focus on creating mass awareness of the new product launches through using both top and bottom line activities. (Lamb, Hair & McDaniel, 2010, p.254; Ball, 2004, p.483). Finally the place aspect of the marketing mix must be closely dealt with wherein the producer endeavours to make maximum utilisation of the stated resources to render enhanced distribution dynamics to the goods and services produced. Again further development of the distribution networks is enabled through the innovation brought about by the internet communication paradigm which also helped in this case for creating an increased market for the innovative typewriters. (Mohr, Sengupta & Slater, 2009, p.7; Contos, Crowell, Derodeff &Dunkel, p.2). Sales Forecasts along a Three Year Time Period The sales forecasts along a three year time period is generated in regards to the bulk amount of expenditure rendered for advertisement and packaging the innovative typewriters developed. It is observed that advertisement activities conducted both below and the on the line by advertising the innovative typewriters through television, printed materials, direct mailers and through the internet paradigm amount to around $1,050,000. Further packaging expenditure rendered amount to $200,000. (admedia.org, 2007). Totalling the above expenditures would finally amount to $1,250,000. The sales revenue measured along the first three years reflect that in the first year it amounted to around 40 percent of the total revenues amounting to around $500000. In the second year the product having better penetrated the market would accrue around 70 percent of the total expenditure coming to around $8, 75,000. Finally in the third year the amount of sales revenue would finally accrue around 105 percent thus achieving both the break-even and a 5 percent profit. The amount would accrue to $1,312,500. Thus the firm would gain a profit of around $62500 in the third year which also catches a growth trend in the years to come. References Finch. (No date). Operations Now (Bk Only) 3E. Tata McGraw-Hill Education. Clancy, K., Kreig, P. & M. Wolf. Market new products successfully. Lexington Books. Barringer. (2008). Enterpreneurship: Successfully Launching New Ventures. Pearson Education India. Mohr, J., Sengupta, S. & S. Flater. (2009). Marketing of High-Technology Products and Innovations. Jakki Mohr. admedia.org. (2007). Advertising Media Planning: A Primer. Available At: http://www.admedia.org/. [Accessed on May 7, 2011]. Trott. (2008). Innovation Management And New Product Development, 4/E. Pearson Education India. Kelly, M. & J. McGowen. (2010). BUSN (Book Only). Cengage Learning. 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Springer. ibmtypewriters.com. (2010). Batchelor Business Machines. [Online]. Available At: http://www.ibmtypewriters.com/newwheelwriter.htm. [Accessed on May 10, 2011]. Hallows, N. (2008). Why typewriters beat computers. [Online]. Available At: http://news.bbc.co.uk/2/hi/7427237.stm. [Accessed on May 10, 2011]. Iamratanakul, S., Patanakul, P. & D. Milosevic. (2008). Innovation and factors affecting the success of NPD projects: Literature explorations and descriptions. International Journal of Management Science and Engineering Management. Vol. 3, no. 3, pp.176-189. [Pdf]. Available At: http://www.stevens.edu/ses/documents/fileadmin/documents/pdf/Peerasit%20Supachart%20Dragan%20Published%20.pdf. [Accessed on May 10, 2011]. Read More