Running head: MARKETING FOR A NEW PRODUCT Marketing for a new product Albert Arseneault MKTG630 5/2/2018 1 MARKETING FOR A NEW PRODUCT 2 Introducing a new product in the market require that the marketing and the sales managers to play a critical role in coming up with strategies that could allow the products to penetrate into the market thereby making more sales. Marketers need to consider different issues in the market such as the nature and kind of product, the place that the product sold, the advertisement which the organization is planning to use, before pricing a new product (Armstrong et al., 2015). Marketing strategy For the management to enhance optimal marketing for a new product, considerations should be aligned to focus on the acceptability of the product by a more significant percentage of customers hence increasing the products' market sales thereby recognizing higher returns. Pricing is one of the components that the management consider on the verge of expanding the number of sales of a product in the market (Armstrong et al., 2015). Organizations reliably price lower for new products in the market notwithstanding spending a lot of money developing the product. The reality of the matter is that organizations and private customers alike are requesting more for less. Worldwide competition, expanded estimating straightforwardness, and lower obstructions to a passage in a considerable lot of the most appealing businesses have added to the pattern. These are by all account not the only issues. Numerous organizations need to make a fast snatch for a piece of the overall industry or quantifiable profit, and with high costs, the two goals can be harder to accomplish (Armstrong et al., 2015). Price Skimming Skimming is one among the many forms of pricing strategies that organizations consider before placing a price on a product especially a new product. Price skimming is characterized by MARKETING FOR A NEW PRODUCT 3 placing a higher price on the product at the first instance and later gradually reduce the costs of the commodity to suit those of the competitors. Introducing a new product in the market with the skimming pricing strategy could win the market because customer like new products and would like to try. When the customers try to buy the product to try new product increases the sales of the product in the market. Skimming pricing is a cordial strategy in the sense that in the event of the time when the customers have become fond of the product, and that they can now buy other company's products, then the company reduces the price of the commodity (Armstrong et al., 2015). Psychology pricing Additionally, the company could adopt the use of psychological price strategy where the product's price is used trying to prick the mental, emotional and psychic directions of the customers. In this kind of approach, the market concerned with the formation of prices that lure the customer unknowingly to get attached to a specific product. For example, this pricing mechanism could place an amount on a commodity at $499 instead of $500. At a glance, the customer could rush and buy the product at $499 other than what it could have been $500 and yet the difference between the two id non-significant. Distribution networks-Vendor-management inventory Distribution of a product is one of the most crucial regarding intensifying the marketing of a product to increase the sales (Hu et al., 2015). For a new product on the market, the best and most optimal mode of distribution is the vendor-management inventory. It is where the vendor is managing the stock of the retailer’s stores, and hence once the stocks hit the reorder level, the vendor prepares to restock. Vendor-management inventory is a form of distribution that is MARKETING FOR A NEW PRODUCT optimally advantageous since it keeps the management of the stock levels of the retailers. Whenever the customer could want to purchase the product, they could find it in the market hence increasing the levels of convenience. 4 MARKETING FOR A NEW PRODUCT References: Armstrong, G., Kotler, P., Harker, M., & Brennan, R. (2015). Marketing: an introduction. Pearson Education. Hu, M., Li, X., & Shi, M. (2015). Product and pricing decisions in crowd funding. Marketing Science, 34(3), 331-345. Tabatabaei, S. R. M., Sadjadi, S. J., & Makui, A. (2017). Optimal pricing and marketing planning for deteriorating items. PloS one, 12(3), e0172758. 5 Deliverable Length: 12–15 slide PowerPoint with 100–150 words of speaker notes per slide Description: Michelle has told you that the board is now ready to see the final presentation of your plan for MM’s new product. "They are very eager to see what we have been working on during the past few weeks," she says excitedly. "I am sure they will love the plan and am looking forward to your presentation." "Thanks," you respond, feeling a few butterflies in your stomach. "I am looking forward to the presentation also. I think we have covered all of the bases and I am sure we have a solid plan. I have jotted down the order of items to cover that I think will be best for the presentation. What do you think?" 1. Objectives of plan 2. Marketing research used to select target market 3. Product 4. Pricing 5. Distribution 6. Promotional Strategies 7. Measuring results 8. Contingency Plan "This looks like a solid format for the presentation. Let me know if you have any questions and I will be happy to help," Michelle says exiting your office. You close the door of your office so you can fully concentrate on preparing your presentation. You have a lot of material to cover, but you have been working on this plan for weeks. Now it's just a matter of formulating a cohesive strategy and anticipating any questions that may arise during the presentation. • • • • • • What might somebody else say to show your proposed solution is wrong? What could you say to show s/he is wrong? What alternative solution might someone else recommend? What reasons might someone provide to support their solution? How would you respond to their reasons? Is there a compromise or creative solution?
Purchase answer to see full attachment