Introducing a New Product to the Market - 550 Words

Introducing a New Product to the Market (Essay Sample) Content: Introducing a New Product to the MarketNameInstitutionInstructorCourseDate of submissionIntroducing a New Product or Service to the MarketFor a business to stay ahead of competition, it must introduce new products or services to its target markets to increase revenues, cover costs and make profits. New products or services are introduce to meet consumer needs and wants. Johnson, Scholes, and Whittington (2008) argue that successful product development requires high-quality information about changing customer needs and the creativity to know how better to provide for these needs. Before introducing a new product to the market, the business should identify the needs and wants, product features, pricing, and distribution channels by carrying a thorough market research.Why Segmenting, Targeting and Positioning Are Useful TargetsJohnson, Scholes, Whittington (2008) states that market segmentation is whereby a group of customers have similar needs that are different from c ustomer needs in other parts of the market. An understanding of markets is crucial because there is a wide diversity of customers needs, so the concept of market segments can be useful in identifying similarities and differences between groups of customers or users. According to (Tanner, J. F., Raymond, M. A. 2012) after segmenting buyers and develop a consumer insight about them, the business starts to see those target markets that have more potential.An attractive market has the following characteristics: it is sizable enough to be profitable given the operating costs; the market should have a higher demand of the products or services and the markets its growing products competitors have not entered. If the middle class is growing rapidly it means that the market is very attractive for consumer products, competitors do not already swamp it, or you have found a way to stand out in a crowd. IBM used to make PCs. However, after the marketplace became crowded with competitors, IBM so ld the product line to a Chinese company called Lenovo. This is part of accessing a competitive market, it is accessible or a way of reaching it established. It fits in the businesss objectives and missions.Why Target Markets are AttractiveTarget markets are attractive because they help companies attract different customers by seeking new users, going after different market segments or finding new uses for a product in order to attract additional customers Tanner, J. F., Raymond, M. A. (2012). According to Johnson, G., Scholes, K., Whittington, R. (2008) target markets involves getting much closer to customers and improving the flow of marketing information, target markets also provide the opportunity to discontinue products or services that are either not targeted on those markets eating up management time for little return or not making sufficient financial contribution. There may also be opportunities to outsource such peripheral areas of activity. Young, L., Burgess, B. (2010 ) argues that target markets assist suppliers to have a clear knowledge of the target markets in detail, the attributes and benefits that the buyers will value and the mix of components that will most appeal to buyers.The Positioning StrategyTanner, J. F., Raymond, M. A. (2012) suggests that positioning strategy involves tailoring a product or its marketing so that it stands out from the com...