Commercialization? - DEUkisi.deu.edu.tr/banu.atrek/MRK 4248 INNOVATION AND...In product commercialization, there are two different types of launch decisions. 1) Strategic Launch Decisions.

COM M ERCIALIZATION

• How to create a Launch Stra tegy

• Target Market Decisions• Brand Stra tegy• Positioning• Launch Cycle & Tactics• Pric ing• Market Testing• Distribution Plan• Post Launch Control

Top ics for Tod a y

Docum entation of the process by which a ne w p ro d uc t o r s e rvic e is in tro d uc e d

in to the m a rke t. It ta ke s in to a c c o un t the p ro d uc tio n , d is trib u tio n , m a rke ting , s a le s

a nd c us to m e r s up p o rt re q u ire d to a c h ie ve c o m m e rc ia l s uc c e s s .

Wh a t is Com m erc ia l iza t ion ?

In product com m erc ia liza tion, the re a re two d iffe re n t typ e s o f la unc h d e c is io ns .

1) Stra te g ic La unc h De c is io ns1.1) Stra te g ic p la tfo rm d e c is io ns1.2) Stra te g ic a c tio n d e c is io ns2) Ta c tic a l la unc h d e c is io ns

La u ch Decision s

- Typ e s o f De m a nd So ug h t( p rim a ry, re p la c e m e n t, s e le c tive d e m a nd )- Pe rm a ne nc e ( in to s ta y, in to s ta y if we m e e t o u r g o a ls , te m p o ra ry)- Ag g re s s ive ne s s ( a g g re s s ive , c a u tio us , b a la nc e d )

St ra t eg ic Pla t form Decision s

- Com p e titive Ad va nta g e ( d iffe re n tia tion , p ric e le a d e rs h ip )

- Com p e titive Re la tions hip ( Ma ke no re fe re nc e to s p e c ific c om p e tito rs , a im d ire c tly a t a s p e c ific

c om p e tito r o r a vo id a s p e c ific c om p e tito r)- Im a g e ( c re a te a ne w im a g e , twe a k a n e xis ting

im a g e , us e the a lre a d y e xis ting im a g e )

Th e Ta rg et Ma rk et Decision

Alterna tive Ways to Segm ent a Market1) End- Use Segm entation2) Geographic&Dem ographic Segm entation3) Psychographic&Behaviora l Segm entation4) Benefit Segm entation

Microm a rk et in g a n dMa ss Cu st om iza t ion

Posi t ion in g- Perceptual Positioning

Map

Crea t in g Un iq u e Va lu e for t h e

Ch osen Ta rg et

Bra n d St ra t eg y

INDIVIDUAL BRAND STRATEGY

Individua l brand stra tegy is when a whole new brand

c learly apart from the corporate im age is created.

UMBRELLA BRAND STRATEGY

Um brella brand stra tegy is when a com pany uses their corpora te

nam e for every product they produce.

Bra n d St ra t eg y : Loca l iza t ion

Pa ck a g in g

PAC KAGING TYPES:

• prim ary packag ing ( the m ateria l tha t first envelops the product and holds it, such as a p ill bottle)

• secondary packag ing( the box tha t holds the p ill bottle)

• tertia ry packag ing ( bulk packag ing tha t holds secondary packages for shipm ent) .

La u n ch Cy clePRODUC T LIFE C YC LE:

La u n ch Cy cleLAUNC H C YC LE

La u n ch Cy clePRELAUNC H & PREANNOUNC EMENT

La u n ch Cy clePRELAUNC H & PREANNOUNC EMENT

BEAC HHEAD

La u n ch Cy clePRELAUNC H & PREANNOUNC EMENT

BEAC HHEAD

EARLY GROWTH

La u n ch Ta ct icsPRELAUNC H & PREANNOUNC EMENT

BEAC HHEAD

EARLY GROWTH

LAUNC H

PROMOTION

SALES & DISTRIBUTION

PRIC ING

PRODUC T

TIMING

PREANNOUNC EMENT

La u n ch Ta ct icsLAUNC H

C o m m u n ic a t io n Pla n( C o m m u n ic a t io n M ix)

St r a t e g y St a t e m e n t

Pe r so n a l Se l l in g

St r a t e g ic A l l ia n c e s

A- T- A- R Mo d e l

Re la t iv e Ad v a n t a g eA p ro d u c t 's d e g r e e o f su p e r io r i t y a n d a t t r a c t i v e n e ss t o c u s t o m e r s o v e r s im i la r e xis t in g p r o d u c t s .

A p o t a t o sp ic e t h a t n e e d s t o b e g r in d e d v s p o t a t o sp ic e t h a t c a n b e d i r e c t l y sp r in k le d

C o m p a t ib i l i t yTh is i s h o w t h e c u s t o m e r s p e r c e iv e t h e n e w p r o d u c t . If t h e y b e l ie v e i t i s a m a t c h f o r t h e i r l i f e s t y le , p e r so n a l b e l ie f a n d e t h ic s t h is w o u ld r e su l t in h ig h c o m p a t ib i l i t y .

C a n 't se l l a c r e a m y - b u t t e r y p o t a t o t o a v e g a n .

La u n ch Ta ct ics

• Lo w - lo w• Lo w - Hig h• Hig h - Lo w• Hig h - Hig h

La u n ch Ta ct ics

La u n ch Ta ct icsC o m m u n ic a t io n Pla n

( C o m m u n ic a t io n M ix)

Ad v e r t i s in g Sa le s Pr o m o t io n Di r e c t & Dig i t a l m a r ke t in g

PR ( Pu b l i c Re la t io n s )

Pe r so n a l Se l l in g

LAUNC HC o m m u n ic a t io n Pla n( C o m m u n ic a t io n M ix)

St r a t e g y St a t e m e n t

Pe r so n a l Se l l in g

St r a t e g ic A l l ia n c e s

A- T- A- R Mo d e l

A- T- A- R Mod el

ATAR

w a r e n e ss

r ia l

v a i la b i l i t y

e b u y

Pric in gLAUNC H

Wh a t is Pric in g Stra te g y?

The pric ing strategy is the m odel used to determ ine the bestprice for a product or service. This strategy helps com paniesto set the best prices to m axim ize profit.

PRICING STRATEGIES

• Value- based pric ing• Cost- based pric ing• Cost- p lus pric ing ( Markup pric ing)• Com petition- based pric ing• Skim m ing pric ing• Penetra tion pric ing• Prem ium pric ing

Va lu e - b a s e d p ric in gFull Sale Value based pric ing is the custom er driven pric ing s tra te g y tha t s e ts p ric e b a s e d on b uye rs ’ p e rc e p tion o f va lue ra the r tha n on the s e lle r’s c o s t.

Co s t - b a s e d p ric in gCo s t b a s e d p ric ing is the p ro d uc t d rive n s tra te g y whic h s e tsp ric e s b a s e d on the c o s ts fo r p ro d uc ing , d is trib u ting , a nd s e llingthe p rod uc t p lus a fa ir ra te o f re turn fo r the c o m p a ny’s e ffo rt a ndris k.

Co s t - p lu s p ric in g ( Ma rk u p p ric in g )Cost- p lus p ric ing is a n a p p roa c h whic h ta ke s the to ta l c o s t o fp ro d uc ing the p rod uc t o r s e rvic e a nd a d d ing s om e a m ount toa llow the b us ine s s to m a ke a p ro fit

Co m p e t it io n - b a s e d p ric in g

In th is s tra te g y, c om p a nie s s e t p ric e s b a s e d on c om p e tito rs ’c os ts , p ric e s , s tra te g ie s , a nd m a rke t o ffe ring s .

Sk im m in g p ric in gPrice s kim m ing is a p ric ing s tra te g y in whic h a s e lle r s e ts ac om p a ra tive ly hig h e a rly p ric e fo r a p rod uc t o r s e rvic e a t firs t,the n lowe rs the p ric e o ve r tim e . Exa m p le s : Mob ile p hone s , g a m ec ons o le s

Pe n e t ra t io n p ric in g

Pe ne tra tion p ric ing c o nta ins s e tting the p ric e low with the g o a lso f a ttra c ting c us tom e rs a nd g a in ing m a rke t s ha re .Ne tflix e xa m p le 7,9 9 $ a t firs t, the n 9 ,9 9 $

Pre m iu m p ric in g

This p ric ing s tra te g y a ls o kno wn a s luxury p ric ing is thep ra c tic e o f ke e p ing the p ric e o f one o f the p ro d uc ts o r s e rvic ea rtific ia lly hig h in o rd e r to e nc o ura g e p o s itive p e rc e p tio nsa m o ng b uye rs , b a s e d o nly o n the p ric e . Exa m p le s : Ro le x,Po rs c he

Ma rk e t Te s t in g

Definition of Market TestingTyp e s o f Ma rke t Te s ting

• Ps e ud o Sa le• Co ntro lle d Sa le • Full Sa le

Zim a Liq u e u rs

Typ e s o f Ma rke t Te s t in g

• Speculative Sale • Sim ulated Market Test

1) Ps e u d o Sa le

Situations where the speculative m ethod is used: 1. Whe re ind us tria l firm s ha ve ve ry c lo s e d o wns tre a m re la tions hip s with ke y b uye rs . 2. Whe re ne w p ro d uc t wo rk is te c hnic a l, e n tre nc he d with in a firm ’s e xp e rtis e , a nd o nly little re a c tio n is ne e d e d fro m the m a rke tp la c e . 3. Whe re the a d ve nture ha s ve ry little ris k, a nd thus a c o s tlie r m e tho d is no t d e fe nd a b le . 4 . Whe re the ite m is ne w a nd ke y d ia g no s tic s a re ne e d e d .

• b us ine s s - to - b us ine s s m a rke ts • d ura b le p ro d uc t

• A Sp e c u la t ive s a le fo r:

“If we m ake this p roduct ava ilab le as we have described it, would you buy it?”

1

https ://www.youtube .com/watch?v=Hatmm84sqm0

• B Sim u la te d Ma rke t Te s t :

• Inform al selling• Direct Marketing• Minim arkets

2) Co n tro lle d Sa le Me th o d

3.A) Te s t Ma rke ting

3) Fu ll Sa le Me th o d s

Marketers a s k va rious q ue s tions fo r m a rke t te s ting a nd c o nd uc tre s e a rc h . The m o s t c o m m o n q ue s tions a re “Whe re s hould we te s t? ”And “Ho w lo ng s ho uld the te s t run? ”

• Pic king Te s t Ma rke ts• Dura tio n o f Te s t

Te s t Pa ra m e te rs

Your com pany’s fulfillm ent partner should offer a ra ng e o f c a p a b ilitie s , inc lud ing :

• Stra te g ic Wa re hous e Loc a tions• Ac c ura te Ord e r Fulfillm e nt• Ad a p ta b le Proc e s s e s• Re a l- Tim e Ins ig hts• Pe rfo rm a nc e Monito ring

Dis trib u tio n

- Why p o s t- p ro d uc t la unc h is im p o rta n t?- Ho w to im p ro ve ne wly la unc h p ro d uc t?- Po s t- La unc h Re vie ws