The reputation management company New York knows all about the marketing strategy implications of the product life cycle since a marketers goal is to extend the product life cycle for as long as possible. Marketers can use it to design a flexible marketing strategy that can adapt to the changing marketplace and their objective is to not only extend the product life, but to make the product the most profitable as possible. A firms competitive activities may involve developing new products, lowering prices, increasing distribution coverage, creating new promotional campaigns, or any combination of these approaches. Marketers goals involves increasing customers frequency of use, adding new users, finding new uses for product and changing package sizes, labels and product designs.
There are stages in new product development that include first being able to generate new product ideas, screening, concept development and business analysis, product development, test marketing and commercialization. Any new product development can be expensive and risky, but it is a key strategy to excite a company’s product mix and product lines. Each stage is important as there is a no-go or a go decision to be made in order for the company to keep moving forward.
The product development stages are important since ideas come from many sources, including customer suggestions, suppliers, employees and competitive products. The most successful ideas are directly related to satisfying customer needs. The screening eliminates ideas that do not work with the overall company objectives or cannot be developed due to the company’s resources. The concept development involves further screening as well as assessment of potential sales, profits, growth rate, and competitive strengths. The product development, functioning prototypes or detailed descriptions of the product may be created including the designs. Next is introducing the new product into the market to see how consumers react with the product. The final step is the product made available in the marketplace and the firm’s distribution, promotion and pricing strategies are all geared to support the new product offerings.