Date post: | 15-Apr-2017 |
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Business |
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Product Commercialization
Commercialization : Commercialization is the process or cycle of introducing a new product or production method into the market. The actual launch of a new product is the final stage of new product development, and the one where the most money will have to be spent for advertising, sales promotion, and other marketing efforts
The 3 key aspects of Commercialization : 1. Ideation Stage - It is essential to look at many ideas to get one or two products or
businesses that can be sustained long-term 2. Business Process Stage - It is a stage-wise process and each stage has its own key
goals and milestones
3. Engage Stage - It is vital to involve key stakeholders early, including customers
Product Commercialization
The Commercialization Process
Commercialization of a product will only take place, if the following three questions can be answered:
1. When - When the company has to decide on the introduction timing 2. Where - Where the company has to decide where to launch its products 3. Whom - To Whom the primary target consumer group will have been identified earlier by research and test
marketing
Flow to Product Commercialization
Key Questions to Answer
• Is there a Product? • Can the Product Win in this Marketplace ? • Is Entry Worth It? [Customer & Market Data is Key] • How will we reach your target customer? • How will the Customer become aware of our product? • How will the Customer buy it? • How will we deliver it?
Product Commercialization The Commercialization Action Plan
a. Develop the Marketing Mix : The marketing mix is a broad concept which includes several aspects of marketing which all inquire to obtain a similar goal of creating awareness and customer loyalty. The marketing mix is not only an important concept, but a guideline to reference back to when implementing the price, promotion, product, and distribution.
b. Address the 7 Key P’s 1. Product [Tangible / Intangible] 2. Place 3. Price 4. Promotion 5. People 6. Process 7. Physical Environment
c. Design the Product pre-launch planning and preparation
• Product business case development and general business planning
• Commercial roadmap including launch planning, detailed resources and budgets
• etc
Product Commercialization
The Commercialization Action Plan
d. Budgeting
e. Managing the Product launch and Post-launch Management • Direct sales into strategic buyers and opinion leaders • Contracting of distributors and other commercial partners • Ongoing management, expansion and optimization of the channel • Support marketing activities, including conference participation
and materials • Manage in-field support, professional education and clinical
specialists • Oversee customer service, warehousing and product import
Product Performance Analysis [NM example]
Load time review
Including workshops and interviews to Establish roles and activities Identify non-value add activity (such as double-
entry), and Identify key barriers to efficient or effective
loading time.
Review of technology
Including review of whether • It is fit for purpose in relation to processes that
lead into it, • what are the user-centered strengths and
weaknesses, and • are the current metrics it provides, useful for
management decision-making and improvement.
Process mapping
Including • Identification of all core product management
functions • Stakeholder identification end to end • Dependencies and chokepoints
Providing recommendations for consistent approach to product loading
Including • Product. Simplify and/or prioritize the
complexity of products/ itineraries. • Queue response time. Up skill and produce
tools to reduce queue of unresolved questions • System difficult to use. Recruitment to include
systems use, expand viewing function and enable feature to include copy and paste.