New product development involves a series of steps that mainly entails the conceptualization of the ideas, designing, development and marketing of the newly created goods or services. The main aim of product development and diffusion is to ensure that an organization maintains, cultivate and mostly importantly increase their market share by meeting the demands of their customers. Sometimes, not every product appeals to the customers or clients even if the target market is well researched and developed. This paper, therefore, delves into the main issues affecting successful product launch and their subsequent diffusion into the market. Additionally, it will examine how effective innovation management in organizations can maximize the chances of successful commercialization.
Diffusion of new products plays a critical role in innovation management in an organization. First, innovation leads to a process of change in the organization and the market as well (Hall, 2004).This is because it is used as a key marketing strategy to win customers and market niche hence creating a sustainable competitive advantage. Additionally, innovation uses assets and competencies that bring about a different or new market offering. This helps in bringing immense value to the firm as there is the creation of patents, trademarks, and industrial designs. The organization is also able to focus on building its organizational capabilities such as new skills along with co-creation of customers’ values (Peres, Muller& Mahajan, 2010).
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However, the diffusion and innovation of new products are not possible because of various reasons. In most cases, the product launched defines a new category that requires substantial consumer education. The customers sometimes are not aware of how to use the product due to lack of proper education, which becomes toast. A strong educational campaign is therefore very essential as it helps in building its brand. In some instances, the product may be revolutionary, but there is no market for it ( Batra& Keller2016). In such a situation, the management is mandated with the task of innovation should engage various teams such as the advertising, sales, and marketing in getting valuable feedback about public perception of the product. The feedback may be opposing and painful – but it cannot be much painful as launching products that are not right for the target market.
Batra& Keller (2016) asserts that products launch fails as most of the organization cannot support the fast growth associated with the innovation of the product. The organization is unable to meet the demand of the high consumption in the market. The consumers, therefore, become angry and decide to forego other similar products in the market. Moreover, the product may fall short of claims and get bashed by the people with no grounded claims. The innovation management should recognize the power of negative feedback as it helps in understanding how the nature of the product should be designed before it hits the market.
According to Holzleitner (2015), commercialization stage of any new product development process is where the new product becomes introduced into the market. Commercialization is the final stage of the development process. Marketing impacts product launch in the following ways. It is during commercialization that the organization identifies its target consumers. The target customers are identified during commercialization and earlier during research and test marketing. The target consumers in most cases comprise of the heavy consumers as well as the early adopters. The launch of the new product, therefore, becomes easier as the market is well established ensuring the growth of the product during the period it is in the market.
Commercialization enables the organization to identify the product launch location. The location may be in the international market, single location or nationally. The launch of product location is strongly influenced by the organization resources, managerial confidence, and the operational capacities. The successful launch of a product is dependent on how the organization identifies its location. The more the organization identifies a strategic and accessible location, the more likely the product launch will be successful hence faster diffusion of the product into the market.
Getting a perfect product in the market is a daunting task. But there are successful strategies that can be utilized to ensure that the product launch goes off without a hitch. Testing is the most appropriate way of maximizing successful product launch (Kanagal, 2015). The organization can bring trusted customers to test whether the product is good or bad. This can be replicated as many times as possible before the actual product launch to understand how the iteration of the product performs within the different test products.
When launching a new product, the biggest mistakes that organization makes is failing to establish positioning and trust in the market. Right positioning in the market is essential in the product launch as it makes the product to sell in the long run. Positioning play a critical as it shapes the way consumers will evaluate the product launched and that of the competitors, driving their purchase decision regarding preference (Kanagal, 2015). Positioning also helps in establishing additional market segment hence determining the needs of each of each different segment and how they differ.
In conclusion, new product development is essential to a growing organization as it helps it in stabling newer markets and maintaining competitive advantages of others. However, successful product launch is very critical as it determines how the product will fare in the competitive market. Effect strategies must, therefore, be utilize to maximize the successful launch of the new product.
References
Batra, R., & Keller, K. L. (2016). Integrating Marketing Communications: New Findings, New Lessons, and New Ideas. Journal of Marketing , 80 (6), 122-145.
Hall, B. H. (2004). Innovation and diffusion (No. w10212). National Bureau of Economic Research.
Holzleitner, R. (2015). A comprehensive framework for successful commercialization of technology pushes innovations.
Kanagal, N. B. (2015). Innovation and product innovation in marketing strategy. Journal of Management and Marketing research , 18 , 1-25.
Peres, R., Muller, E., & Mahajan, V. (2010). Innovation diffusion and new product growth models: A critical review and research directions. International Journal of Research in Marketing , 27 (2), 91-106.
