Implications of Launching a New Product Internationally - Research Paper Example

Based on the commercialization plan a company should establish when the product would be launched (launch timing), where it will be launched (location of launching), and the target customers of the new product.

The international launching process is a challenging experience and has both positive and negative implications. Stages involved in new product launching are logistics, identifying strategy of marketing, proper placement of product and target advertising and marketing is the main step in international launch of a new product, (National Research Council, 1993). A successful launching implies increased production and sales while unsuccessful launching implies significant company loss.

On the international market side the evaluation and participation of the customers are crucial for successful new products commercialization; therefore, how customers evaluate, participate, and view the product is crucial, (Gisser, 2008). Companies experience various challenges when launching a new product internationally, for instance, the existence of different cultures and intra multicultural countries development. Many firms are under excessive pressure to quicken the commercialization of their new products to enhance the lifetime and cost-effective value of products and to bear the changing economic trends.

The greatest challenge in the launch of a new product internationally is to ensure the company effectively and securely delivers accurate and current brand marketing materials to channels of distribution, retailers, customers, and sales teams. Handling decentralized costs, supporting public relations across different markets, and ensuring that international requirements of products for engineering, sales, and marketing are satisfied is a challenge, (Kono & Lynn, 2007). Planning for diverse language press tours, conferences, presentation of products, and sessions of training as well as ensuring consistency in product qualification and testing is a challenge. Therefore, following a better commercialization plan helps a company handle such challenges.

Companies may experience problems in meeting growth targets due to changes in demographic traits of customers, high competition in established markets, and high spending on services as well as an increase in price labels and reduced new brands' success rate, (Morley, 2008). Experts agree that providing standardized products for diverse national markets may allow firms to attain fast development of products and multi-national rollout as they benefit from substantial cost-benefit. Nevertheless, not all producers in multinational markets are able and willing to adopt a standardized strategy of products. In cases where technological demands, standards, and procedures of approval differ substantially among nations, manufacturers invariably should adapt the brand techniques that fit the unique requirements of each nation. Similarly, extensive customization may cause increased development of new products, rollout times, and enhance the chances of the entire project delays, thus adversely affecting the entire outcome of the new product. Adopting a better commercialization plan will enable the company to adopt strong marketing strategies to prevent project failure.

International launching of new products in the market – based on commercialization plan - is a necessity for gaining competitive advantage. International launching of new products has some key benefits to the companies with innovative products and services. They benefit from increased sales via a prolonged sales life and increased profit margins as customers a longer premium purchase price to increasingly innovative products, (Brooke & Mills, 2003). The company also benefits from increased product loyalty because products get a chance to attract clients and increase sales. Products have also increased resale opportunities as brands and commodities that other firms can label privately, can aid ensure sales in different channels. Greater market responsiveness is another advantage because innovative companies can offer products that satisfy evolving customer needs and the increased chance to capitalize on such brands for the lift of margin and enhance product recognition.

Conclusion
In conclusion, therefore, for the successful launch of a product internationally various aspects must be considered. For instance, the content development, selection of the site, product registration, and tracking, involvement of salesforce opportunities, preproduction, and postproduction, technologies of communication, customer feedback, and enduring materials must all be geared towards the effective international launch of the product. Therefore, a commercialization plan is crucial to ensure the success of a new product launch.
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