Product planning & Market research
Product planning & Market research
Introduction to Product Planning
Product Planning is the on-going process of identifying and articulating market requirements that define a product’s feature set. Product planning serves as the basis for decisions about price, distribution and promotion. Product planning analyses the product features like what the product should be? The target users of the product, expected demand, competition etc.
Product planning and development process
Every product starts as an idea. But all new product aides do not equal merit or potential for economic or commercial success. To develop a new product the following steps must be realized and they are Idea Generation, Idea Screening, Project Planning, Product Development, Test Marketing, and Commercialization
Every product starts as an idea. But all new product aides do not equal merit or potential for economic or commercial success. Some estimates indicate that as many as 60-70 ideas are necessary to yield one successful product.
The primary function of the idea screening process is twofold: first, to eliminate ideas for new products that could not be profitably marketed by the firm and second, to expand viable ideas into full product concepts.
It is here that the new product proposal is evaluated further and responsibility for the project is assigned to a project team. The proposal is analyzed in terms of production, marketing, financial and competitive factors.
Product development, also called new product management, is a series of steps that includes the conceptualization, design, development and marketing of newly created or newly rebranded goods or services.
Now management goes outside the company and submits the product candidate for customer’s approval. Test marketing is a controlled experiment in a limited geographic area to test the new product or in some cases certain aspects of the marketing strategy, such as packaging or advertising.
This is the launching step in which the firm commits to introducing the product into the marketplace.
Introduction to Marketing
Marketing can play a key role in integrating supply chain processes and promoting collaboration between different stakeholders. Similar to manufacturing environments, marketing supply chains rely on the creation, production, warehousing, and fulfilment of materials, as well as the collection of feedback for continuous refinement, all of which can be seamlessly integrated into the larger supply chain. If so then what is the deal with researching market.
After the manufacturing of the product, now the product has to be launched into the market, but before that we have to look over the behavior of the market, nature of the market etc, therefore a detailed research has to be done prior to launch. Market research relies on surveys, focus groups, interviews, libraries, government agencies, trade associations.
Market Research- Porter’s 5 Forces model
Porter’s 5 Forces model in Marketing Research developed the so called 5 Five Forces Analysis model to better identify factors that shape the character of competition, to assess the structural attractiveness and business value of any industry and to pinpoint strengths and weaknesses in a company.
Competition within an industry relies upon the bargaining power of suppliers, bargaining power of customers, threat of new entrants, threat of substitute products and rivalry among existing competitor.