Tuesday, January 19, 2010

Developing a New Product

It is common to see enterprises SMEs, usually family, which as always worked together to seek improvements have great passion for what they do, what they say usually have the shirt on. This sometimes makes it to invent new products or services more or highly innovative technology. They invest money, develop the product and when they go to sell it is a failure, all the passion was put into a "great product". This typical product launch dismissed the market, outside both the consumer and the competitor.
When a company plans to develop a product must look at what he has or is making competition and clearly see the competitive advantage the new product will offer to consumers to substitute what they are consuming by the new, or changing the habit consumption and take the time to develop a new process of making purchasing decisions.
It is important to understand the definition of competition, competition is any company that develops a solution that meets the same need that will satisfy the new product we develop. What does this mean? Not necessarily be the same product but the solution to the same need. For example, if you develop a new bra to produce wooden furniture called "rejected" because nobody produces and sells studs does not mean we do not have competitors because they assemble furniture today with some other subject, namely that competition address that there otherwise meet the need of armed furniture. The competitive advantage and is fundamental when developing a new product but also the concrete foundation that we will use when communicating.
I propose, develop competitive advantages and then new products instead of backwards. This means that instead of the trigger is creating a new product that is a competitive advantage, some need not being met, then instead of developing a new product we're developing a new longer-range solution.
Set pricing
Price is an important issue for employers because of course the result of the business pattern, or if the business does or not. The price patterns must consider many aspects, but mainly based on competition and looking to the consumer, quite the opposite of price fixing cost + margin expected or desired. In this aspect should be done as a habit to check the prices of competitors constantly, if the competitor improves its production process and low price business scrolls quickly.
Once that is done reviewing the pricing strategy and determine a way forward, depending on the macroeconomic situation should not change or touch up until the next review. While the price in a flexible factor, it is very possible that if the pricing strategy is not clearly defined, we have problems with the different marketing channels because they arrive more or less advantage to the final consumer. It is therefore essential to clear guidelines discounts on different channels.
Another action to follow is the program of promotions, many times if the products are seasonal, the company can overtake the competition and before the consumer launch period with a reported price promotion strategy and thus win the market. This rate portal marketing a habit, and every year take the same action or similar, always one step ahead of the competition.
Product Strategy
The product strategy should always be scheduled from the time of the life cycle the product is going through, but as it evolves and changes it or do we change the marketing strategy. So it's important to have a habit of reviewing where the product is launched and change the period of greatest growth then you have to identify actions that drive business to achieve higher growth, sustained over time.
Market research
Another habit that can be acquired is the market research, often feared by the companies because if they do, specialized companies are so expensive, if we talk about statistics and probabilities not everyone understands. However, sniff the market is to do market research. A small round of visits in the final outlets to see how it moves the end user, the search for indices that determine the movement of areas of interest of the company.
Customer Loyalty
A more complex activity but no less effective is the measurement of customer satisfaction that will result in improving aspects of the products but more important is to measure customer loyalty. A satisfaction greater fidelity, less possibility of changing the product by the competition.
With a satisfaction survey that can be sent once a year where only takes three minutes to answer with a scale of one to five (from dissatisfied to very satisfied) a series of questions to help us determine what works well and the we must improve the fidelity can be measured successfully.
Article Source: http://EzineArticles.com/?expert=Jonathan_Wong