Strategic Marketing: Forecast and Budget - Essay Example

? Strategic management Product development The development of a new product is a complex process requiring finance and research. Research on the demand for the proposed product or a market gap to be filled by the product is vital. It is vital of the market research to establish the difference in the current products in the market. However, the main challenge can be in product designing and factoring of the response of the consumers. The proposed product is the Portable Emergency Button. The role of the product is improving personal security by linking the person to the security organizations in the area. The portable button will reduce cases of insecurity but the current challenge is to design. Product Development and Testing Hire expertise to develop product 45 Prototype development costs: 140 Labour 240 Materials 130 Subcontracting 210 Special Purpose Equipment 300 Miscellaneous 230 Fees for lab testing 212 Field Trial costs 125 Patent Application Fees 43 Legal Fees re IP 233 Additional marketing research activity 50 Development of technical manuals 65 Development of User training manuals 210 Packaging Design 65 Travel Costs 120 Staffing Costs 230 Update business plan 50 Search for Venture Capital 210 Other related costs: 250 The product marketing and promotion programs are not captured in the product development because they are under the marketing budget. These components are not part of the development process. The development of a gadget connecting security organization with the people demands that the bodies must understand how the system operates. The role of security organ is to develop the necessary security structure support workability of the product. The success of the whole process depends on the ability to address pertinent issues affecting the product. The trial costs must be monitored because trials are very expensive to address or handle leading to serious challenge for the product development process. There are several sources of risks exist in IT projects. The risks include inadequate executive sponsorship and insufficient time allocation. Insufficient time allocation will allow several risks to occur in the company because of short time for the operation to be addressed. Loss of key team members may change the outlook of the skills in the group leading to failure to address several issues that are may very complex to the team. The product is an IT related programs that must be addressed in issues of communication and the issues of security of the communication practice Market Research & Technical Feasibility costs Product Management Training $100 Other HR training costs $100 Focus Group Costs $100 Brochure Development $145 Costs gathering market intelligence $350 Product mock-up costs $230 Staffing Costs $340 Consulting Costs (idea evaluation, marketing assistance) 210 Technical Review of Product Concept 120 Legal/Professional fees 120 End-user visits 230 Other related costs: 300 New product launch support services New product development and completion do not guarantee success of the product, unless the implementation process is undertaken in a way that will encourage the target market to try out the product. Several launching programs exist, but the company needs to engage in tactical launch of new products. During the process of planning of new product launch, support is required from the top management on the dates of launch, and the facilitation required, in the process to achieve success (Sandhusen, 2000, p. 34). In order to support the tactical and the strategic launch of products, market research must be conducted so as to determine the efficiency of the method chosen for the product launch. Market testing is vital throughout the new product development process. Market testing will allow the organization to finalize the planning process of the product launch. Additionally, the feedback collection process will be efficient if the customers are allowed to give their opinion during the product launch leading to the ease of product improvement in the process (Shaw, 2011, p. 54). The failure of the process depends on several management issues that can be addressed through the use of cross functional teams. The development of strategy requires the combination and use of the cross functional teams because it facilities the development of activities that are in line with the company’s set objectives. It has been observed that successful and unsuccessful launches differ significantly with the set strategic and tactical launch activities. The success of the product launch is dependent on the actions of all other departments in the organization. It is vital for the management to facilitate the use of cross cutting function in the development of the new system of development of new products. The management must ensure participation from all the functional units of the organization. Total management participation will facilitate easier transfer of information on issues such as distribution channel among other issues (Malaval and Benaroya 2002). The success of the product in the market will continually depend on the activities of all the departments in the organization. Therefore, after the launch, management must continue to monitor performance and should not leave the work to the marketing department. Maintaining a project based marketing team The project based marketing team is a sub group of the marketing department with their focus on the marketing of new project to be established. They deal with all issues associated with the marketing of the project. Several problems are associated with the project based marketing team making their work extremely hard. First, they may be isolated because of their focus and believe of their independence. There is a tendency of isolation for the team from other functional units of the organization as a result of perception differences. The relationship and group cohesiveness between the project team and the company’s marketing department can have problems as a result of the lack of coordination between the two teams (Crawford 2000, 67). It is essential for the management to highlight the differences between the two teams and the role of the project marketing team. In addition, their association with all the other departments should be stipulated to reduce crisis in the marketing operations. It is advisable that the project based marketing team be derived from the marketing department to facilitate continuity in the marketing strategy for the company. The management of the project based marketing team is done by the marketing manager in charge of the company’s marketing department. The success of the project does not lie on the team selected for the purposes of marketing the project, but on the corporate actions taken by the business in the project marketing process (Smith 2002, 89). Project marketing is dependent on the nature of the project; some projects are short term thereby requiring short term marketing strategy. Bibliography Crawford, Merle. "Marketing Research and the New Product failure Rate." Journal of Marketing, 2000: 51-78. Malaval, Peter, and Charles Benaroya. Aerospace marketing management:manufacturers, OEM, airlines,airport,satellites. Berlin: Springer, 2002. Sandhusen, Richard. Marketing. New York: Barron's Educational series, 2000. Shaw, Stephen. Airline Marketing and Management. London: Ashgate Publishing Ltd, 2011. Smith, Jonathan C. Stress Management: A Comprehensive Handbook Of Techniques And Strategies. New York: Springer Publishing Company, 2002. Read More