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New Product Development and Competitors - Assignment Example

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This assignment "New Product Development and Competitors" determines consumers' preferred commodities that are already available from the competitors. This means other than meeting customers’ needs, it has to be done in a way that is much better than alternatives offered by the competition…
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Extract of sample "New Product Development and Competitors"

Questions and Answers Table of Contents 1.0 New product development and competitors. 2 2.0 Six main populace relation techniques and their use by Victoria University in Australia Melbourne. 3 3.0 Compare and critique the low and high involvement models of consumer decision 4 4.0 Market research, the need and steps. 5 5.0 Consumer decision making model 6 6.0 New product in the market and factors for product development 7 7.0 Methods of developing Public relation 8 Q1: Brands can begin to lose market share or disappear altogether, and say that “all brands have their day.” 9 Q2: Quantitative Data Use in an Organization 10 Q3: Channel Conflict/Harmony: Stella McCartney 11 Q1: Longevity of Brands 11 Q2: Qualitative Research Data and Organization 12 Q3: Green Marketing and Consumer Behaviors 13 Q4: Channel Conflict/ Harmony: Levi Strauss and Company 15 References 16 1.0 New product development and competitors. In business, new product development (NDP) refers to the entire process of bring a new product in the market. New products and services must be beneficial and meets customers’ needs. Therefore, essential to discover what these needs are. NDP can be done easily by the help of competitors. The first step would involve a market research through surveys or focus groups to analysis market as well as the competitors. The information gathered is vital for the development of the new product. This is because the research will determine consumers preferred commodities that are already available from the competitors. This means other than meeting costumers’ needs, it has to be done in a way that is much better than alternatives offered by the competition. The new product must be having a unique selling proposition or a feature or a property that makes it stand out in the marketplace compared to other similar products. This can only be done by first analyzing competitors and getting to know what should be done in the new product to ensure it penetrates and lasts in the marketplace. The two main methods involved in NDP include the idea generation. This encompasses product design as well as engineering the product details. The other method is market analysis to determine how well the competitors’ products are doing. Thus, by looking at competitors in the market, a company will be able to determine the current customers’ needs, the reason that would make customers choose a company’s products rather than the rest, both now and the days to come, as well as helping in knowing what risks the NPD will bring. In view of the above, NDP relaying on the competition will drive sales and regulate demand for the product (INFO Entreprenuers 2013). 2.0 Six main populace relation techniques and their use by Victoria University in Australia Melbourne. According to Fleisher, Wright & Allard (2008) views, before any steps are made to market institutions, there must be a strategy to create ideal customers that will be reached through the promotional materials. This guides in the various techniques to use in order to reach them. Some of these are low cost or no cost at all methods. Specific methods can be used at different stages of institution cycle or utilize them all once for inception of new programs Looking at six of these techniques in detail may inform which marketing is for Victoria university in Australia Melbourne. Flyers are cheap advertising targeting an area where most clients can be reached out. The information provided should be brief to the point, highlight the services the university is offering and contact information. Key still, free appraisal or discount is necessary. Posters, on their part are important in public spaces Bulletin boards are efficient for announcements and advertisements. The posters have to be visible, and of different color to follow the most leads. The area which produces most lead enables targeting the campaign. Use of value additions would be a powerful selling point for the University. They may include discounts, guarantee attachments and referral rewards. Value addition should then be highlighted to make it sink. Referral networks can be invaluable which may integrate other national and international colleges. They may refer the courses to students in need which they do not offer at the time. An important technique involves follow up; a stronger tool of marketing. Questionnaires provide best feedback of why the students chose the institution, what is more satisfying and the least satisfying. Flyers may be slipped to their mailboxes to refer to similar people in need at the neighborhood. Finally, Internet through University website provides details such as location and programs. This enhance access to large number of people who Google and in need of fast decision. 3.0 Compare and critique the low and high involvement models of consumer decision In making decision to purchase a product, the involvement is either high or low. High involvement occurs when the consumer foresee the buying, that is personal related to it but has high risk to it. These are valuable items that are rarely purchased but have many involvements. The risk mentioned is financial risk although risks come in many forms. A product selected on the basis of social risk, that defeats buying decision, may show high involvement. Consumer spends much of his time in search of the buying; hence increase the risk and gathering information about the product. On the other hand low involvement, involves purchasing a product that a consumer needs less or no information about it. However, high involvement may have post buying dissonance particularly when a customer was not sure of their purchase or had a very difficult time choosing between the alternatives. There is also an extensive problem solving a customer engages in as they consider other brands. Since most high cost products have their own poor reputation for quality, a good brad might be more appealing and important to a customer. This means that manufacturers of these products with typical high-involvement decisions in a way can become complacent of the value of their goods. On the other hand, low involvement may limit engagement of consumers in routine response behavior. This attachment with a certain brand is seen to save search time and evaluation periods. This tends to be an impulsive buying and purchases may be made without previous thought or planning (Erasmus, Boshoff & Rousseau 2010). 4.0 Market research, the need and steps. Market research involves getting into the marketplace to test and determine the recognition and recognition of a product or a service, particularly amongst diverse demographics. It tries to confirm the portion of the consumers that does or will purchase a specific product based on gender, age, income level and location among other variables. Market research is imperative as it helps companies to know and learn more about past, present and potential customers, including their specific preferences, likes and dislikes. Moreover, market research helps producer companies with information on new products or products lines, as well as having an idea of how well the new production will be received and how the public reacts towards a comparable product already in the market. Accordingly, suppliers are able to know where to concentrate their resources most effectively. Also, by so doing a company can develop a “target audience”. This is a specific group of consumers who have a distinct need or desire for a product or service. By analyzing marketing research information, supplier gets to know how their target audience well; like how often they buy a product, the much they are willing to pay for it, their overall satisfaction with it. Conducting a market research involves six steps. Firstly, the problem ought to be defined; the decision alternatives and then research objectives are spelled. This aids in acquiring the specific outcome of the research. Second step is developing a research plan that involves efficient planning to gather the information as well as determine the cost of the same. Third step is collecting the information from the various market targets. Fourthly, analyzing the information is the needed to determine the way forward. The fifth step is presenting the findings to the right authority. Finally, the sixth step is making a decision. This is based on the presented findings from the research. 5.0 Consumer decision making model Over the years three decision making models have been brought forth to explain consumer decision making when buying a product. Utility Theory was the earliest model that suggests that, consumers make decisions based on the expected outcomes. The model claimed that consumers are rational actors and able select outcome which capitalized on their well being. However, some scholars argued that consumers are not completely rational or consistence. Indeed, consumers find it difficult to translate frequencies into probabilities. Thus, the utility mode had so many shortcomings it could not explain. Therefore, a simple model called “satisficing” was proposed in the mid 50s. This theory proposed that consumers stopped the search for a product or service after they get the best available within their reach, and hence stopping the decision making process. This model too did not go very well with various scholars who termed it as unsatisfying satisficing model. In a bid to develop better understanding of consumer decision making, psychologists Kahneman and Amos Tversky develop the third model know as the “Prospect Theory”. This model expanded the previous Utility and Satisficing theories. The prospect theory encompassed the best aspects of the previous two theories, while solving the as many problems from them as well. The prospect theory added two major elements; firstly the element of value was developed which replaced the utility contained in the utility theory. Value also offered a reference point as well as evaluating both gains and losses relying on that specific reference point. Moreover, gains and losses involve a marginally decreasing increase from a specific reference point. For instance, the first incremental gain from the reference point there is much value than for the subsequent gains. Secondly, element of endowment was developed. This meant that a commodity is more precious when owned by one person rather than if owned by someone else (Richarme 2013). 6.0 New product in the market and factors for product development One of the procedures in bringing a new product to the market is idea generation. This requires collecting of ideas to be assessed as potential products options, contributions are internal and external. Second is evaluating the ideas generated by to isolate the best options from the rest. Mostly, screening is done in round with the executives given the priority to judge the feasibility of ideas. On the other hand, successive rounds may require more advanced research tactics. Third step is concept development and testing where the marketer attempts to obtain feedback from customers, distributors and the staffs. A concept board displaying the drawings of a product notion or the advertisement featuring the product is shown to customer. In stage four, the process depends much on market research as various methods are employed to analyze the capability of the product ideas. The most important aim here is to get projection of market size. In fifth stage, the researchers are directed to make a sample of the idea. A marketing plan is made for the product as the customer experiences it. In step six, the products are tested and marketer instigates the idea as a product that is fully marketed. Commercialization is the last stage in new product development, after the test shows a promising results, the product becomes ready to wider market introduction. The company should produce products that are not subjected to any law limitation. The product produced should be safe, even when used properly, and also should not contribute in any way to degradation of the environment. A company’s product should always benefit the society. Price of the product in the market should also be considered. The company should consider the demand of the Product in the market, whether it will last to help get the revenue (Fuller 2011). 7.0 Methods of developing Public relation Various methods are employed to develop public relations. Firstly, many companies have created PR department as way of keeping the company at pace as far as public relation is concerned. This department develops and manages relationship of the company and the public. Through monitoring of the public’s attitude towards the company, they are able to develop and distribute the right image for the company that creates friendliness. Secondly, marketing public relation is vital method of developing public relation. This aims at creating publicity for the company. Moreover, public relation is developed through mass advertising. This is carried out through news papers, televisions among other mass media campaigns. The relation can be as well enhancing through posting press releases on the website and the internet. As well, developing a mission statement showing the company`s reason for being and the value that it provides to customers will speak volumes of the company’s image to the public. Branding the company is a key ingredient to influence memorable in the minds of the public. This means that it’s not only about the name recognition but also the perceived value of the firm. Furthermore, public relations can be developed through establishing the company`s brand by frequently updating the financial position and value or any potential value associated with the company. Quantifying the achieved results and adding them to companies brand value enhances its image. In other words, all methods that communicate the company`s brand to the outside world are highly recommended (Mckerns 2013). Q1: Brands can begin to lose market share or disappear altogether, and say that “all brands have their day.” According to Groucutt (2006), brands can disappear immediately after launch or at relative time in the market. One critical elements with most brands that disappear from market is that the owner of the brand has very little of research. It is estimated through market research firm that about 75% of most consumer packed goods fail within the first year. One of the critical factors for this is the unawareness of the consumer shopping habits. Most consumers repeatedly buy an item which mostly constitutes of largest consumption of households needs. This makes it hard to get new brands on the radar. The benchmark for most brands does not exceed a certain limit and a number of them end up off the market. Failure to manage aspects like value for money, choice, health and convenience also accounts for disappearance. Brands can fail due to various reasons, and the most significant being lack of continuous preparation. A company may focus on design and new product manufacture as an integration of innovation and technology, but fail to prepare enough. The hard work is failed due to their failure to market them until it is too late. When less is done on launching, marketing and sale of such brand a frequent and fatal flaw lead to brand disappearance. The brand may also lack to be efficient and precise to its market. The development of product may define new categories and thus consumer may need considerable education to have a continuous sale. The brand may fail to meet the value by remaining on its traditional lines or transforming itself to a complex and different forms. If sales channels involved with the brand are less informed about it, the brand disappears and its relevance in the market is lost. Q2: Quantitative Data Use in an Organization An organization dealing with club services for women looking for information of what women are looking for in their choice of joining a well-being club may require choosing the quantitative research agencies. As Gelo, Braakmann & Benetka (2008) argues, it is possible to measure various variables and aspects and quantify them according to the most important to the least one. Quantitative data would promote a lot of functionality in the organization as it would take account of the age of its users, lifestyles, social status, and residences and be able to determine other relevant information interrelated. This data identifies specific information that wide consumers may demand and prefer. This may promote its relevance and priorities of improvements. Keen interests are identified and have interplay towards exclusive improvements and services. This will delineate unique services compared to what the current trends in the market offers. Specific information may establish vital details of pricing and service positioning. It would be possible to set average prices for their services. This would also precisely determine future improvements as the quantitative data is applicable for long-term purposes. Such data determine supporting activities like launching, marketing campaign as the organization may assert its benefits. The target audience also precisely informs of seasons and influencers of that data promote its efficacy. If clients are clear about the demographic geared toward the service, they always know more which would refine the services. Key advantages and differentiators are also easily articulated with clear services description. This will enable the services to define a new category and assure the clients in that line. It is the basis for an objective advertising and precision on the market. However, basing on qualitative data would only capitalize on fad which soon fizzles and create discordant data. Q3: Channel Conflict/Harmony: Stella McCartney Stella McCartney fashions; Target and those sold in mid-and high-tier boutiques may exhibits a myriad of implications in channel harmony/conflict. In some of their operations there will be conflict. Among them are the distribution networks causing stress in relationship. This will effectively turn them into both partners and competitors simultaneously. The chain of business processes and relationships will become confusing also. Resellers will be alienated in a way. However, it is possible to manage channel conflict and turn it for the company’s advantage. One of the ways to reduce conflict is offering commission to distribution channels. An incentive program can be identified through the parameters that focus on channels. Adding value to channel partners can be enhanced by mixing up and experimentation of various programs. As channels deliver better services and has a higher lifetime value for customer, the company should pay them and reward them who take the renewal. Communication is very paramount and the company communicates the truth about their undertakings and their vision to agents. This means that many channels will continue to re-organize their distribution. This eliminates speculation and fear as channels are aware of the benefit highlighted (Chang & Gotcher 2010). Q1: Longevity of Brands Brands do not just disappear from the market without certain factors behind it. There therefore factors which ensure that a certain brand survive and dominate in force. The new insight can be attributed to brand longevity. Brands can then live forever, and long-term success will depend on skills and insights in the markets involved. The age when a certain consumer engages with a certain brand is critical. This implies that, a brand which is very much visible in house and on TV when a certain consumer is a child will develop an emotional attachment to it. The customer will stay on regardless of its future prices, performance and convenience. At first, the parents introduce, but as time goes, becomes a personal choice. However, emotional engagement is very easy demanding a sort of ‘creative destruction’. A brand continues to dominate the market for centuries through radical transformation which a company does through innovation time and time again. Application of technology, combined with materials makes a brand remain more effective and cheaper. Based on the leap of technology, genuine innovation, dominant brands just react (McKay 2010). Strong brand management depends on how a brand stays relevant adapting to macro customers trends. Otherwise, without shift a brand may not survive in long-term. Skilled brand management and macro consumer trends involve value for money, health, choice and convenience which dominate consumer behavior. Price premium positioning also affects brand longevity as a brand has a higher value compared to volume market share. Finally, brands that dominate the constant emerging channels go on winning in long-term. Currently, the brands which market themselves well on the on-line retailers and platform will finally be dominant in future. Most of the assertions are justified by brands like Colgate, Lucozade and most detergents which have survived in decades (Twyford, 2010). Q2: Qualitative Research Data and Organization The brief for this kind of research undertaking would take sides with qualitative research methods involved with the two agencies. This is strongly supported by the fact that, the chemical prove for ant killing product has already gone its most critical analysis following the quantitative data methods. The other fact follows that it would be less effective as it would provide precisely on the number of customers with complaints with the product. However with the need of diverse information from different customers, it is best o settle for qualitative research. The outcome of such research will be rich and holistic as the customers will give responses according to their own view. As participants are allowed to speak in their own viewpoints, the information can then be compared from a number of respondents to mark specific and important information. The agencies have the potential to give information strongly potentially of revealing complexity. There are more aspects of product that are outside its chemical composition, such as prices, packaging and others that might have motivated complaints. Furthermore, this information can be grouped into primary and secondary data, according to its relevance and applicability with the current situation. The data will also enhance an understanding of the latent issues. As much it would provide more detailed information, it will be specific and this allows tracing the source of problem. The divergent techniques of problem analysis, possible with qualitative research, will have strong impact on the organization. This is because, at the convergence of this information, it will be possible to get the most probable application (Gelo, Braakmann & Benetka 2008). Q3: Green Marketing and Consumer Behaviors Green marketing would really be challenge as it affects the competitive advantage of a company. The trends with the most prominent companies are always followed by the consumers as compared to environmentally safe notion. This has been due to the tendency of companies engaged in the practice failure to implement, overexposure and lack of credibility. The premium prices involved with green products adds to products’ price and the value for money takes the first position for most consumers. The company has to carry out both primary and secondary research, interact with consumers to gather much information and other information collected by others before the move. As Pickett-Baker & Ozaki (2008) argue, consumer behavior will directly reveal the buying tendencies of product consumers. Since there are several stages a consumer passes to pick a product which is available in the market, it is important to account for other various factors involved. As much as green products may be a personal desire, account for some score of consumers may adversely affect the market for its products. This is because, other factors such as social, cultural, psychological must have their part as well. This also influences the buying decision of greater number f individuals. However, with an understanding of the buying behavior of the consumers, green product may do well and the company can take the role of determining. As the marketer identifies the target consumers, understand their income, spending abilities, psychologies and lifestyles and mentalities, they can be able to offer them the product they will deem right. This implies that consumers are the dictates of the market place. Green products can be a hit among higher and middle income group. These individuals are conscious of their fitness and health. On the other hand, those who live hand to mouth may never spend on green products. To strongly advance, the company requires providing consumers with complete information to the end-users. No information should be hidden from them as it is unethical. The relevant warning is meant to familiarize with both the benefits and side effects of those products. In move toward this, company would assume the responsibility by taking account of geographical location, social status and lifestyles of their target consumers. Q4: Channel Conflict/ Harmony: Levi Strauss and Company The move by Levi Strauss and Company has various implications. Both the selective distribution and intensive distribution will be involved with aspects of harmony and conflict. The SWOT analysis would mean that distributional channels will assume specific product suitable with their customers. This would be followed from consumer background and other primary influence to a product. Selling Type 1 to individual who does not have much money would be pointless. Consumer will show interest if the jeans are of use to them or are used by members of their family. Among the higher and middle income earner, individuals will be conscious about quality and this would make it efficient for the channels. However, those who cater for both products might lose their customers and have to keep the consumers aware of the differences (Chang & Gotcher 2010). There is however some actions can enhance harmony and minimize conflict in channels. First, it is important to give the relevant information to consumers. They should not be hidden as this would not be ethical. Individuals will then be aware and familiar with such separation and reduce the side effects brought along the channel lines. Secondly, the geographical location of channels can be identified for one type of jeans in relation to the social status of the consumers living around. The lifestyles of consumers are important in guiding in this. Channels can be enhanced to build their reputation and restrict its clientele. When every channel is very clear of its audience, they understand the power at access points and this can advance consumer appeals. References Chang, K H, & Gotcher, D F 2010, ‘Conflict-coordination learning in marketing channel relationships: The distributor view, Industrial Marketing Management, 39(2), 287-297. Erasmus, A C, Boshoff, E, & Rousseau, G G 2010, ‘Consumer decision-making models within the discipline of consumer science: a critical approach’, Journal of Family Ecology and Consumer Sciences/Tydskrif vir Gesinsekologie en Verbruikerswetenskappe, 29(1). Fleisher, C S, Wright, S, & Allard, H T 2008, ‘The role of insight teams in integrating diverse marketing information management techniques’ European Journal of Marketing, 42(7/8), 836-851. Fuller, G W 2011, ‘New food product development: from concept to marketplace’, CRC Press. Gelo, O, Braakmann, D, & Benetka, G 2008, ‘Quantitative and qualitative research: Beyond the debate’, Integrative psychological and behavioral science, 42(3), 266-290. Groucutt, J 2006, ‘The life, death and resuscitation of brands’, Handbook of business strategy, 7(1), 101-106. INFO Entreprenuers 2013, Develop New Products or Services. Retrieved 01 30, 2013, from http://www.infoentrepreneurs.org/en/guides/develop-new-products-and-services/ McKay, P Z 2010, ‘A Review of “Brand Immortality: How Brands Can Live Long and Prosper”, Journal of Business & Finance Librarianship, 16(1), 96-98. Mckerns, L 2013, Best Tips for Branding Your Company, Retrieved 01 30, 2013, from http://aboutpublicrelations.net/ucmckerns3.htm. Pickett-Baker, J, & Ozaki, R 2008, ‘Pro-environmental products: marketing influence on consumer purchase decision’, Journal of Consumer Marketing, 25(5), 281-293. Richarme, M 2013, Consumer Decison-Making Mdels, Strategies and Theories, Retrieved 01 30, 2013, from http://www.decisionanalyst.com/publ_art/DecisionMaking.dai. Twyford, C 2010, March, ‘What Makes Big Brands Stay Big?’, Retrieved Jan 29, 2013, from nielsen: http://es.nielsen.com/news/documents/BigBrandsFI.pdf Read More
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