New product development process management system. Development of the concept of a new product in the marketing activities of the enterprise. Stage II. Concept development
Currently published schemes for new product development typically include the following stages: idea generation, idea selection, product concept development, marketing strategy development, production feasibility analysis, product development itself, market testing and commercialization. This sequence of stages is of a fairly general integrated nature and does not contain a detailed discussion of a number of significant blocks of the enterprise’s marketing activities, such as elements of product marketing development, including the shape, color and material of the product, assessment of the market adequacy of the product and its competitiveness, as well as forecasting the sales of goods and development of the enterprise's product policy. A more detailed study of these blocks of marketing activities is presented in the work, however, the methodological approaches presented in this study are fragmentary in nature and are convenient when used only for specific blocks of the general scheme for developing new products.
The important stages of product development should be the creation of the product design, including its shape, color and material; development of appropriate packaging and creation of a modern trademark. Serious importance should be attached to ensuring the quality of the product and assessing its competitiveness. The next steps, after ensuring all the necessary procedures for creating a product, should be an assessment of its market adequacy, understood as the compliance of this product with market requirements, as well as an assessment of the product by the company, that is, identifying the compliance of the economic parameters of this product with the production and financial goals of the enterprise.
1. Generation of ideas is a constant systematic search for opportunities to create new products. It involves highlighting the sources of new ideas and methods for creating them.
Sources of ideas can be employees, sales channels, competitors, government, etc.
Market-oriented sources identify opportunities based on consumer wants and needs; Scientific research is then directed towards satisfying these desires. Ideas to create light beer, roll-on deodorants and easy-to-open cans of carbonated drinks arose from this.
Laboratory-focused sources identify opportunities based on basic research (which aims to generate new knowledge and indirectly leads to new product ideas) or applied research (which purposefully uses existing scientific methods to develop new product ideas). This was the source of the appearance of penicillin, antifreeze, and synthetic fibers.
Methods for generating new ideas include brainstorming (small group meetings where open discussions stimulate the emergence of a wide range of ideas), analysis of existing products and surveys, morphological analysis, forecasting methods - scenario method, Delphi method, etc.
It should be noted that for the successful generation of new ideas, the broadest possible vision is necessary; you should strive to get ideas from different people; don't criticize them no matter how unusual they seem. In the practice of Japanese companies, it is widely used to involve all employees of the enterprise, and especially sales employees, in putting forward new ideas, and a reward system has been developed.
New ideas, including patented ones, can also be acquired from other firms. Acquisitions reduce risk and time, but require large investments and create dependence on the innovation activities of other companies.
2. Economic analysis of product ideas
Economic analysis of ideas can be carried out in the following stages.
1) Forecasting costs associated with product development, market entry and sales
The forecast is associated with a certain risk, since for analysis it is necessary to know the situation on the market, the time and area of sale of the product, and the attitude of consumers towards the product.
2) Estimation of sales volume (turnover, revenue)
The quality of the forecast depends on how accurately one can estimate market growth, achievable market share, and price, which in turn depends on costs.
3) Profit forecast
If we know income and expenses, or receipts of funds and payments, for a certain period of time, then investment calculation methods can be used to forecast profits. In any case, it is necessary to consider several periods because, as the product life cycle model shows, the first periods may be completely atypical from a profit point of view.
4) Accounting for uncertainty
For each situation, it is recommended to develop optimistic, average and pessimistic forecasts. Another possibility of taking into account uncertainty is to correct the target values in such a way that they are assigned coefficients expressing the degree of their reliability.
3. Development of the product concept
The product concept development phase is closely related to the method of functional cost analysis. The method evaluates product elements only on the basis of costs, without taking into account other criteria. Items that do not significantly affect the quality of the product must be eliminated or modified.
The product concept is studied in the following areas:
What functions should a specific product element perform?
What auxiliary functions does it perform?
What costs are associated with it?
Are the functions performed by a product element really necessary?
Can this function be performed by another, cheaper element and what savings can be achieved?
4. Product design development
The quality of a product is formed both by the functional features of this product, the development of which is the prerogative of designers and technologists, and by the external design, in the development of which a marketer must necessarily participate. The most important means used in product development and embodying the appearance of the product: shape, color and material of the product.
The form of the product is associated with both basic and additional qualities. Of the additional qualities, the most important is the aesthetics of the product. The physiological theory states that an image that is comfortable for the eye and involves a small number of movements is the most aesthetic. Forms should consist of simple, consistent, and, if possible, symmetrical lines and elements.
The perception of form is influenced by the personality and taste of the perceiver, traditions (familiar forms are perceived better), as well as the environment (in an environment corresponding to their functions, products produce a better aesthetic effect). Fashion also has a strong influence.
Color is the simplest and cheapest means of product variation. The palette of colors and shades is endless. There are about 2,800 color names in the world, and in total there are more than 7.5 million different colors and shades. The choice of color is determined by the material and a number of other factors.
Colors have a psychic effect, calming or exciting. They express sadness or joy, make the product easy or difficult to perceive, and influence the image of the distance to the object.
Colors can play the role of social symbol. For example, black is the official color of government officials and religious figures (black cars, suits, cassocks, etc.). White is the color of newlyweds and artists, etc.
Sometimes there is a legal restriction regarding the color of a product (for example, signal colors or the livery of a police vehicle). Certain color combinations are protected from competitors by patents.
When choosing a color, you need to take into account the requirements of corporate culture, since many companies adhere to a certain combination of colors.
The material of a product also greatly influences the perception of the product. Some materials evoke sympathy, others, on the contrary, repel.
Developing the appearance of the product should be a constant task of the marketing department. The next important element of product development is its packaging.
5. Development of packaging and trademark
Packaging design is a part of product planning in which a company studies, designs and produces its packaging, which includes the container in which the product is placed, the label and inserts.
Let us highlight the key factors in creating packaging that should be taken into account when making decisions in this direction.
1) Packaging design should influence the image that the company is looking for for its products. Color, shape, materials - all this influences consumers' perceptions of the company and its products. Simpler packaging creates an image of lower quality for generic brands.
2) Standardization of packaging increases global acceptance. For this reason, Pepsi-Cola and Coca-Cola use the same packaging in all parts of the world.
3) The cost of packaging must, of course, be taken into account. The relative cost of packaging can reach up to 40% of the retail price, depending on the purpose and extent of packaging.
4) Modern materials stimulate demand. A company can choose from a number of packaging materials: cardboard, plastic, metal, glass, cellophane, etc. In this case, compromises are necessary. For example, cellophane allows you to display products, but breaks very easily; cardboard is relatively cheap but difficult to open. In addition, you need to determine how innovative the packaging should be.
5) Then the company must select the size, color and shape. When choosing sizes, you need to take into account shelf life, convenience, tradition and competition. The placement, content and size of the label, as well as how prominent it should be, must also be determined. It must indicate the name of the company and the brand of the product.
6) Multiple packaging combines two or more units of goods. These can be the same products (for example, razor blades, carbonated drinks) or a combination of different things (for example, a first aid kit). The purpose of such packaging is to increase consumption, get consumers to buy a set of things or try new products (for example, a new product packaged with a well-known and purchased old one). Individually packaged portions of a product can create a competitive advantage. However, this can be expensive.
7) Finally, the company must ensure that the packaging design matches the marketing plan of the business.
An important part of product planning is brand definition, a procedure that a firm follows in researching, developing, and marketing its objectives.
A trademark is a name, sign or symbol that identifies a seller's products and services. By using or creating well-known trademarks, companies can usually gain public recognition, widespread distribution, and higher prices.
The importance of trademarks is determined by the following reasons:
Product identification is facilitated;
It is guaranteed that the product or service has a certain quality;
The company's responsibility for its products increases;
Instead of comparing by price, the buyer compares brands;
The prestige of products grows with the growth of public recognition of the brand;
A distinctive image of products is created during market segmentation;
A trademark can be used to launch a new product.
After developing a product trademark, a product quality assurance system should be created.
6. Ensuring product quality and assessing competitiveness
The formation of a product quality system at an enterprise can be based on three areas of management: quality assurance, quality management and quality improvement.
Quality assurance, in accordance with the ISO-9000 standard, can be defined as a set of planned and systematically carried out activities that create the necessary conditions for performing each stage of the product life cycle in such a way that the product meets certain quality requirements.
Quality management is the management of technological processes, the identification of various types of inconsistencies in products, production or the quality system itself and the elimination of not only identified inconsistencies, but also the causes of their occurrence.
Quality improvement is a constant management activity of an enterprise aimed at increasing the technical level of products, the quality of their manufacture, improving the elements of production and the quality system of the enterprise itself.
The enterprise's quality system must also take into account the assessment of the competitiveness of manufactured products. The competitiveness of a product is the ability to compete on equal terms with similar products on the market and bring sufficient profit to its manufacturer.
7. Assessment of the market adequacy of the product
The economic success of an enterprise directly depends on the extent to which its products satisfy certain needs. Therefore, product compliance with market requirements can be determined based directly on economic indicators. Indicators can be sales volume, profit, coverage of fixed costs.
However, in most cases it is not possible to evaluate a product based on economic indicators, for example:
· when the decision to innovate is made before any data on the market reaction appears;
· economic indicators are influenced by many side factors;
· identifying the market adequacy of a product is important for its improvement and modification.
In such cases, it is important to find out how well the product (product) or production program meets the requirements of the market and consumers. In the future we will call this the market adequacy of the product.
To assess the market adequacy of a product, various approaches can be used:
a) field marketing research to determine the activation of consumer needs and preferences when purchasing certain goods;
b) laboratory marketing research, which determines the possibility of assessing the emotional impact of a product on consumers;
c) analytical modeling, which ensures the identification of an assessment of the subjective quality of a product;
d) multivariate computer modeling, which provides comparative assessments of different products according to a variety of characteristics.
Field marketing studies of the market adequacy of a product are based on studying the product’s compliance with the needs of buyers in natural conditions at different stages of specifying needs.
A more comprehensive and objective assessment of the market adequacy of a product can be carried out using laboratory marketing research that records the emotional impact of products on consumers.
The data obtained as a result of marketing research is necessary in order to change the unsuccessful characteristics of the product and, ultimately, adapt it to a specific market.
Given the rapid changes in tastes, technology and competition, a firm cannot rely solely on existing products. The consumer wants and expects new and improved products. And competitors will make every effort to provide it with these new products. Therefore, each firm must have its own new product development program.
When developing new products, you can follow one of the following strategies:
- Modification: changing the characteristics and properties of a manufactured product;
- Imitation: product development based on successful developments of competitors;
- Innovation: development of a new product for the market.
Stages of new product development:
1. Search for ideas. At this stage, it is necessary to collect the maximum number of ideas for improving the product - a bank of ideas. These searches should be carried out systematically, and not occasionally.
Sources: competing products (eg foreign); market and consumer research; own scientific and technical developments; technical marketing; system of innovation and invention at enterprises; creative methods of searching for ideas (special techniques and methods for stimulating the innovation process).
According to Toyota, its employees annually generate 2 million proposals, of which 85% are used.
2. Selection of ideas - critical evaluation of ideas. Everything that cannot be implemented today in principle, that is contrary to the law, does not correspond to the fundamental strategy of the company, or ideas with low potential profit is discarded.
3. Product concept development and testing
If an idea is a general description of a product, then a concept is an idea detailed in terms of characteristics that are significant to the buyer.
For example: the idea of creating a new small car with low fuel consumption.
Concepts for this idea:
- A small-sized car intended as a second family car, for trips of the housewife for shopping, children, etc.;
- An inexpensive small-sized car for young people, indispensable for traveling and meeting with friends;
- A car designed for environmentally conscious people who are interested in a low-pollution means of transportation.
Testing – checking their impact on target consumers. Most often, at focus groups, consumers are introduced to verbal descriptions or prototypes, and based on the results of their expressed preferences, one of the alternative concepts is selected.
4. Development of a marketing program (description of the target market, positioning strategy, determination of costs and prices, volume and nature of advertising, sales channels, forecast indicators for sales volumes and profits, market shares);
5. Creation of prototypes (prototypes) and their testing.
6. Test marketing: The product and marketing program must be tested under conditions close to market conditions. 2 test marketing options:
- Standard: several typical test cities are selected in which the full marketing concept of the product is implemented. The most reliable method, but very expensive and time-consuming, competitors have the opportunity to familiarize themselves with the new product.
- Simulated: the company displays its products in artificially created conditions (cheap, but disadvantage: small sample, unnatural environment).
7. Commercialization: after successful trial marketing, mass production is mastered and the product is released to the market.
Submitting your good work to the knowledge base is easy. Use the form below
Students, graduate students, young scientists who use the knowledge base in their studies and work will be very grateful to you.
Similar documents
The concept, essence and role of new products in marketing, the need for its development and the reasons for failures. Product life cycle. Stages, features and methods of developing new products. Efficiency of organization of planning of new products at OJSC "UltraPak".
course work, added 12/02/2010
The concept of a new product as an economic category, the reasons for the need and the main stages of its development. Analysis of the organization of planning "new products" at the studied enterprise OJSC "UPAKMASH", ways to develop recommendations for its improvement.
course work, added 03/02/2010
The concept of a product and its classification according to the degree of novelty. The role of the marketing service in the creation of new products. Stages of creating a new product. Analysis of successes and failures during its development. Suggestions for reducing the risk of new products failing in the market.
course work, added 04/24/2010
Basic concepts and features of the new product development process, its life cycle. The main risks and mistakes when developing a new product and introducing it to the market. Analysis of the process of developing a new product using the example of the MediaMaster publishing house.
course work, added 12/24/2013
The main goals and functions of planning new products, the influence of the external business environment on its success or failure in the market. Features of the product life cycle. Step-by-step process of developing a new product, its functional and cost analysis.
course work, added 04/05/2012
The essence of the concepts: product, product unit, product range; classification, consumer properties, “hard” and “soft” parameters for determining competitiveness. Product life cycle; new product planning process; brand designation.
lecture, added 01/20/2012
Study of theoretical and practical aspects of the development and introduction of new products to the market. Review of criteria for identifying new products. Stages of introducing a new product to the market. Analysis of consumer preferences in the Russian passenger car market.
course work, added 11/18/2013
An organization can obtain a new product in two ways: by purchasing a company, a patent, a license, know-how, or through its own developments.
New product development- this is the development of original products, improvement of products and their modernization, creation of new brands of products through the organization’s own R&D.
The new product development process consists of eight stages:
§ idea generation;
§ selection of ideas;
§ concept development and testing;
§ development of a marketing strategy;
§ business analysis;
§ development of the product itself;
§ test marketing;
§ commercial production.
Idea generation- systematic search for ideas about new products. The search for new ideas is carried out mainly on the basis of internal sources of the organization (in the department of new technology, in the R&D service, in the marketing and sales department, etc.), studying the opinions of consumers, competitors, suppliers and distributors, consulting organizations, exhibitions and various printed publications, through the use of special methods of generating ideas.
Selection of ideas- analysis of all put forward ideas about a new product in order to weed out unpromising ones at the earliest stage of development. As a result, ideas about a possible product that the organization can offer to the market are selected (Figure 9.8).
Rice. 9.8. The path from idea to successful commercialization of a new product
As can be seen from Fig. 9.8, the number of ideas accepted and developed into a real product decreases over time, and the costs of their search and selection increase.
Concept development and testing- the idea of a new product is transformed into a product concept, which is tested on a group of target consumers in order to determine the degree of its attractiveness. The concept can be presented to consumers verbally or through illustrations.
Development of a marketing strategy- determination of a marketing strategy for entering the market with a new product. The following questions are addressed here. First of all, the size, structure and nature of the target market are described, and the positioning of the new product is carried out. Next, estimates of sales volume, market share, price, profit are given, and distribution channels are selected. Of course, in most cases such forecast estimates are very indicative. However, using even rough estimates is better than not using them at all.
To obtain information about a new product, surveys are conducted (consumers, employees of trade organizations, individual experts). Forward-looking information about the possible market fate of a new product can also be obtained based on an analysis of sales volume (say, by studying life cycle curves) of similar products, or from an analysis of the situation in the field of competition.
Business Analysis- assessment of the expected sales volumes, costs and profits for a new product to determine their compliance with the goals of the organization. In other words, we are talking about assessing the attractiveness of a given new product for the company.
Direct product development- transformation of the concept of a new product into a material product; the goal is to ensure that a product idea can be developed into a working prototype.
Product development, a broader concept compared to R&D, represents the transformation of the concept of a new product into a tangible product that has a finished marketable appearance, i.e. it also includes the marketing development of the product.
When choosing the best option for a new product, various methods can be used, the simplest of which is presented in table. 9.2. Checkmarks in the table. 9.2 indicates the degree of compliance of each of the two new products being evaluated with the required characteristics (criteria). It can be seen that the first product has a higher integral rating compared to the second.
It is possible to convert this method into a quantitative scale. To do this, it is necessary to assign a quantitative measure to each gradation of the scale and weigh the criteria; then, by summing the weighted assessments for each criterion, integral assessments are determined for each product.
21. Product attributes are an integral part of the thesaurus of American consumer psychologists, economists, and managers. In American psychology, a product attribute is understood as its property, element or characteristic of functioning that is important to the consumer. We understand product attribute as a significant feature of a product that determines its perception by the consumer as suitable for him. Not all characteristics of a product are considered an attribute, but only those that are important to the consumer. Attributes in consumer psychology are the starting points to which attribution occurs. If the attribution of personality is characterized by the attribution of any characteristics, then the attribution of a product as a simpler entity is characterized by attribution only in the plane of “suits - does not suit me,” in other words, “mine - not mine.” Based on the attribute, properties such as importance, uniqueness, necessity, etc. are assigned to the product. Let’s say that Italian fabric is attributed to the characteristics “quality”, “reliability”, “durability”. Attribution in consumption is closely related to associations, myths (in the interpretation adopted in PR), image
22. Product policy- this is a marketing activity associated with the planning and implementation of a set of activities and strategies to create competitive advantages and create such characteristics of a product that make it constantly valuable to the consumer and thereby satisfy one or another of his needs, providing corresponding profit to the enterprise.
Product policy accumulates in a single complex marketing management of the product life cycle, its consumer value, brand strategy, development "new items".
The quality of a product as a measure of its utility reflects the aggregate characteristics that can satisfy the needs of society.
The consumer value of a product is determined by the extent to which, thanks to its properties, it satisfies specific human needs. You can depict a specific product and a specific human need in the form of circles, and the consumer value of the product in the form of the degree of their combination. The figure shows that product A does not satisfy need X, product B partially satisfies it, and product C completely. In this case, product B has the greatest consumer value, i.e. high consumer loyalty.
Rice. Three degrees of need satisfaction
The main regulator of market demand is the consumer properties of the product, which are shown in the figure:
Rice. Consumer properties of the product
The physical properties of a product express material characteristics that reflect the shape, dimensions, weight, volume, service life, and the material from which the product is made.
Functional properties must ensure consumer satisfaction from the main purpose of the product, its target function. So, the refrigerator is obliged to keep food fresh, medicines to treat the sick, etc. Or a flawless TV is unlikely to be successfully sold if it produces poor sound.
In contrast to the functional properties inherent in the product by the manufacturer, symbolic properties express those qualities that the consumer attributes to them. These properties reflect the commitment of customers to this particular brand. These products give a special status to their owners. Symbol products include watches, cars, real estate, etc.
Economic properties reflect the price of a product, the cost of its operation, energy intensity, and time savings when used relative to similar products.
Aesthetic properties are organically connected with the level of consumer culture, lifestyle, specifics of upbringing, traditions, and social status. The main components of this feature are design and styling.
Design- aesthetic perfection of the external appearance of the product, which makes it attractive.
Styling- artistic design of a product within a certain style, taking into account elements of grace, beauty of decoration, compliance with fashion, retro.
Ergonomic properties are an expression of the combined characteristics of the convenience and safety of using a product, caring for it, water resistance and breathability.
Ergonomic properties are associated with service, including home delivery of goods, warranty and preventive repairs. In this case, packaging plays a big role.
Package- the shell of any product to preserve the quantity, quality of products, ease of transportation, loading and unloading. Packaging, as a rule, reflects the “image” of the product in the eyes of the consumer. The packaged goods must not pollute the environment.
Based on the study of the market and the prospects for its development, the enterprise receives initial information to resolve issues related to the formation, planning of the assortment and its improvement.
The set of goods offered by a manufacturer on the market is called an assortment. In general, a product assortment is characterized by breadth (the number of product groups), depth (the number of items in each product group) and comparability (the relationship between the product groups offered in terms of consumer community, end use, distribution channels and prices).
The process of regular updating of the product range is inextricably linked with the company’s innovation policy.
Innovation policy is a set of strategic decisions to update the product range, develop the concept of a new product or modernize an old one.
The process of updating the product range involves the development of a comprehensive system, including an innovation strategy, areas of modification, variation and differentiation.
The development of an innovation strategy involves planning and management decisions on the production of genuine new products to meet consumer needs. To gain a sustainable competitive advantage, the process of product development, promotion and sale must include two blocks - a basic set of properties and the unique advantages of the product.
23. The essence of marketing communications policy
Marketing communications policy is a set of activities that an enterprise uses to inform, convince or remind consumers about its products or services. Often in specialized literature this block of marketing elements is called “promotion”. But it's far from the same.
If promotion is one vector information influence of the commodity producer on the consumer, then marketing communications also provide for feedback between them. Thanks to such feedback, the enterprise receives valuable information, which gives it the opportunity to correctly navigate the business environment and make appropriate adjustments to its activities, including regarding the tools and actions of the communication complex.
Marketing communications policy is implemented using an appropriate process of many elements placed in a certain, logical sequence.
The main elements of this process are:
- sender (source of information) - an enterprise that offers its goods or services and sends relevant information about them, addressing it to its target market;
- encoding - transforming information into a form that is convenient and understandable for the consumer, effective from the point of view of communication tasks;
- appeal is, on the one hand, a set of symbols (words, images, numbers), and on the second - the moment of their transmission to the target market;
- communication channels - means of disseminating information, its specific media;
- decoding - deciphering the message, when the symbols that come through communication channels acquire specific meanings in the minds of the consumer;
- recipient - the consumer to whom information about the goods or services of the enterprise is transmitted;
- feedback - consumer reviews, their actions in response to receiving and decoding the appeal;
- feedback - part of the feedback that becomes known to the sender;
Obstacles - possible unwanted or unaccounted for interference in the process of marketing communications (quality of printed publications, transmission time of radio messages, consumer appeal to advertising, ambiguity of appeals, etc.).
After reviewing the material in this educational element, you will be able to answer the following questions: what is the concept of a new product; what is product positioning and what criteria is it advisable to carry out? how to define general principles for developing new products; classification characteristics of consumers according to their attitude towards innovations; principles for developing ideas for innovative products.
Taking into account the practice of marketing activities, the concept of a new product is understood as a scientifically based and detailed idea not only about the product itself, its consumer characteristics, market potential, life cycle, but also about factors and conditions external to it.
We are talking about production factors that form the cost indicators of the product, its quality characteristics, scale of production, and factors that create needs and the market, which are on the side of the consumer and the market (the nature of demand for the new product and its analogues, the state of the market and trends in the development of the segment market). The concept of a new product is that it must meet the needs that will be formed by the time the product enters the market.
The concept of a new product is based on the fact that it must meet the needs that will be formed by the time the product enters the market.
A special place in the concept of a new product is occupied by its positioning - a system for determining the place of a new product on the market among other products, taking into account the nature of consumer perception of all competing products. Positioning involves determining the characteristic features of a product that distinguish it from competing analogues. It is aimed at strengthening the competitive position of a product in a specific market segment by developing preferred incentives for potential buyers to purchase it.
Before deciding on product positioning, the manufacturer needs to determine the positions of competing products and their manufacturers, which will make it possible to choose two such areas of positioning:
1) positioning with one of the existing competitors;
2) creation of a product that has no analogues on the market. Making a decision on a positioning strategy is accompanied by a detailed study of the marketing mix.
An enterprise can position a product in the presence of competitors, taking into account the following factors:
It can create a more competitive product;
The market is large enough to accept new competitors;
The enterprise has significant resources at its disposal;
The chosen position most fully meets the competitive capabilities of the enterprise.
Creating a product that has no analogues on the market can allow an enterprise to “win” consumers in the absence of competition. To make such a decision, you must ensure that:
Technical capabilities to create a unique product;
Economic opportunities for creation and production within the boundaries of a reasonable price level;
A sufficient number of potential buyers who prefer the product.
Creating a product that has no analogues on the market can enable an enterprise to “win” consumers in the absence of competition.
General principles for new product development
Countries with developed market economies have accumulated a wealth of experience in combining production capabilities and consumer demands, developing a product strategy, including product quality management, market research, choosing the best channels for selling products, forecasting and meeting consumer demand, pricing, advertising and other forms of demand stimulation. , functioning of wholesale and retail trade, development of foreign economic relations, including new forms of cooperation.
The main problem of modern marketing is the creation of new products, mastering production and their timely entry into the market. The success of a new product on the market contributes to the prosperity of the enterprise (company, firm); failure entails bankruptcy.
Today, competition in the field of wholesale products is increasingly moving to the sphere of new products, their range, quality, scientific and technical level, and prices and production costs cease to play a decisive role.
The main difference between modern marketing is the novelty of products. The new is not the philistine “well-forgotten old”, but materialized in consumer goods and means of production, achievements of science and technology. Product novelty is an objective and subjective category, the manifestation of which is as diverse as a large assortment of products, their groups and modifications.
The feeling of consumer novelty is the most important incentive for the development and dissemination of innovations. Innovations are new consumer products associated with changes in fashion, style, and taste of consumers: new styles of clothing, household appliances, car models, brands of personal computers. The rapid changes in these innovations are followed by long-term trends in the quality of products and the improvement of their consumer properties. Innovations are also fundamentally new products, equipment and technology, the emergence of which satisfies the new needs of manufacturers (aviation, television, new generations of computers, etc.).
The feeling of consumer novelty is the most important incentive for the development and dissemination of innovations.
In countries with developed market economies, in business, especially small business, marketing is identified with the specific market activities of the company (studying demand, identifying potential buyers, advertising activities, determining sales and service methods, pricing policy, etc.), that is, a narrow interpretation of marketing is used. At the same time, in the conditions of modern development of scientific and technological progress, in connection with the broad interpretation of marketing, the concept of marketing covers the activities of creating and developing new products, ensuring their production, i.e. all types of enterprise activities aimed at identifying needs and meeting market demands, creating and producing a new product, organizing wholesale distribution, retail sales, and servicing consumers. This definition reflects the essence of the concept of marketing, the most important principle of which is “customer orientation.” In the conditions of modern scientific and technological progress, knowledge-intensive competition, rapid obsolescence of products, frequent replacement and a huge variety of consumer products, to implement this principle it is necessary to constantly modify, develop and restore products or services to meet the rapidly changing demands, tastes and preferences of customers or clients. The company must take into account not only short-term needs, but also anticipate long-term ones. Thus, scientific and technological progress fits organically into the concept of marketing, because without a constant search for something new, a company cannot achieve its goals.
In general, the concept of marketing today is characterized by flexible and dynamic adaptation to the preferences and demands of society, which are changing rapidly. The features of “social responsibility” are most clearly revealed in it. For example, in response to this new and very important trend, the American company Stop and Shop Supermarket, which operates 144 stores in Massachusetts, has developed a Facts and Products program together with the Federal Food and Drug Administration (FDA). The program aimed to educate consumers about healthy eating and used yellow food labels to provide information on more than 1,000 low-calorie, low-fat, low-saturated fat, low-sodium and low-cholesterol grocery, dairy, and frozen products. It should be noted that supermarkets are also taking an active part in the fight for a healthy lifestyle in the United States.
However, it should be noted that most people are conservative, which causes certain difficulties in implementing innovative marketing programs. For example, a study conducted by the American Marketing Association showed that only 2.5% of buyers are innovators, that is, people who are risk-takers and are willing to experience newness. The results of this study are shown in table. 7.1.
It is especially necessary to emphasize the factor that has radically affected all aspects of the functioning of the economy as a whole, each specific enterprise, and the consumer - this is the scientific and technological revolution. Modern scientific and technological revolution has radically changed the operating conditions of an enterprise (firm, company), transformed its spheres of activity, structures and management functions, in particular, the role, place and significance of such established links as the marketing service.
The theory and practice of marketing are of particular importance at the present stage of the scientific and technological revolution, the main features of which are new opportunities for increasing the efficiency of industrial production and modernization of traditional products, a sharp increase in knowledge-intensive competition, rapid updating of the range of products for industrial and consumer purposes based on the development of fundamentally new achievements science and technology. Today, the proposition that close contact, which is ensured by marketing, cooperation of supply and sales services with production and research departments, determines the success of a new product and the entire enterprise (firm, company) no less than the creation of this product (service) no longer requires proof. , intellectual property).
A new product is the subject of many entrepreneurial decisions. It is created with the support of various marketing activities, introduced into the market, modified if necessary and, if economically feasible, discontinued. In a period of saturated markets and fierce competition, the main task in the field of working with a product is the creation of new products.
In a period of saturated markets and fierce competition, the main task in the field of working with a product is the creation of new products.
