MBA Distance education learning/ Product Launch

Q: What are the types of new products?

Ans: Followings are the types of the new products.

1. New for mankind.

The new discoveries and inventions like Television, telephone, bicycle and more recently the computers, have been the new products.

1. New for the country

The few products or brands launched for the first time in a country

1. New for the industry

Like flat television is first time launched in the Indian market by Philips, The laptop computers were launched in the computer industry.

1. New products in the product category.

A cigarette is a product category if a cigarette for women is launched, will be called new product in the product category.

5. New product in the product class.

Like cold drink company launches a cold drink with lemon flavor.

1. New product for the company

Like a company offers a new product or brand to the market like Airtel has launched its T.V. cable which was a new offering from Airtel.

Q: Explain marketing objectives for the new product?

Ans: The typical marketing objectives for the new product should contain:

1. Unit or Rupee value sales of the product by the year.
2. Market share by the year, and
3. Product profitability in terms of percentage margins.

Q: Explain situation analysis?

Ans. It studies the Microenvironment of the situations of economic, the political-legal, and the demographic and social trends in relation to the launch of the product.
The importance of this analysis is to assure the success and determine the early steps of product launch and brand building.

Q: What is Market analysis?

Ans: Following concepts will help us understanding Market analysis:

• Market overview- The market size and growth is studied in quantitative and qualitative aspects.
• Segment overview- it studies the kind (class, income group etc.) And size of the market segment for the new product.
• Consumer overview- it studies the who are the buyers, age, gender, qualification etc. the influencers, needs, wants, preference etc.

• Competition overview- it includes the pricing strategy, advertising, competitors etc.

Q: Explain the criteria for selecting the target market.

Ans: Some common criteria for selecting the target market are:

1. Segment attractiveness: the marketer sees if the market size, growth and future potential are available in the chosen market segment.
2. Accessibility: the market segment should be such that it could be served by the marketer.
3. Degree of fit: It implies that the company should have some prior experience so that it can serve the market segment efficiently and profitably.
4. Competitive situation: A company should target such market segment where there is less competition.
5. Profitability: The company should offer service to that market segment from where it can get maximum profitability.

Q: Explain the Product strategy for the new product?

Ans: Whenever a new product is launched the important emphasis is put on pricing and promotion of the product.

Let us discuss each of them in detail.

Pricing the new product

A new product is priced in such a manner that it provide the company with-

1. Reasonable profits

2. Reasonable and continued market share

3. Reasonable unit wise sales.

The two pricing strategies are:

1. Skimming pricing: Usually distinctly new products are priced high in the initial stage and then lowering the price for the rest of the market and to face competition.

Examples are Dove soap, Woodland footwear, Daewoo cars.

Such pricing policy works well when

1. The market is large and no of segments is available to target with a new product.
2. When competition follows the launch of the product in the market.
3. The objective is to earn profit immediately than market share.

Penetration Policy

It suggests to price the product low so that most of the market can be captured. Such launches were

1. Nirma washing powder,

2. Peter England shirts,

3. and Maruti 800 cars.

Q: What are factors that affect the price of the new product?

Ans: the factors that affect the price of the new products are:

1.Demand for the new product

2. Costs of offering the product

3. Marketing and sales objectives.

Q: Explain the Promotion of the new product?

Ans: In the promotion of the new product Usually AIDA model is used

• Awareness
• Interest
• Desire and
• Action

The promotional mix used is:

• Advertising
• Publicity
• Sales promotion, and
• Personal selling

The promotional activities also witness other activities like Distribution and launch in simultaneously.