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New products and services have to offer benefits that meet your customers' needs. You need to discover what these are.
Market research, using techniques such as surveys and focus groups, will help you do this.
Remember that although the end user of your product or service might be your most important customer, you may have to take the needs of other parties into account.
For example, if you were planning a new product, you would need to consider how retailers would stock it as well as how it would benefit professional decorators.
Your competition
Not only must you meet your customers' needs, you have to do so in a way that is better than the alternatives offered by the competition.
Your new product or service needs a unique selling proposition - a feature or property that makes it stand out in the marketplace. Before entering the market you need to determine:
· how customers' needs are currently met
· why customers would choose your product or service rather than the competitors', both now and in the future
· what risks you are prepared to take to launch your product or service into this market
CREATING A PROJECT TEAM
Every potential new product or service requires a dedicated development team.
In creating your team you need to include people with a variety of skills. For example, as well as a creative ideas person you may also need a technical expert, a marketing specialist, someone who can source components and someone who understands the supply-chain difficulties you could encounter.
All team members should understand your business' objectives and be committed to them.
There are many forms of effective team working and the right one for you will depend on your business' needs. For example, team members might:
· work as a unit dedicated to one project, reporting to a project manager
· work exclusively on one project but remain in separate departments reporting to department heads who are under the project manager
· work on several projects at once with both a department head and project manager to monitor progress
Teams need someone in a project management role to lead, co-ordinate and motivate the team.
INVESTMENT AND COST CONTROL
Developing new products and services is an inherently risky process. You must plan any investment carefully and strictly control your costs.
You need to:
· factor any future investment in products and services into your strategic business plan
· plan exactly where this investment will be directed
· justify the expenditure on every project
· manage your costs
Before making investment decisions, consider how much your business stands to gain from a completed product or service. Weigh this against the risks you face.
Phasing new product development
One way to minimise your risks is to phase investments in projects. By reviewing a project at the end of each phase or stage of development, you can identify products or services that are unlikely to be successful before resources are wasted.
Finding support
A range of government grants is available for research and new product development.
Cost control
It's essential to keep a close eye on costs when you develop new products and services to avoid them spiralling out of control. You should:
· estimate development costs in advance
· monitor expenditure throughout the development process
· introduce phased investment
Remember that your costs could include staffing, materials, technology, product design, market research, prototyping and incremental overhead costs.
MANAGE A DEVELOPMENT PROJECT
Project managers are essential to ensure the successful development of new products or services. They'll be responsible for:
· controlling costs and allocating resources
· drawing up the key parameters for the product or service's specification
· co-ordinating the product development team
· timetabling the development process
· troubleshooting
However, flexibility must be built into your plans. Any number of unknowns can come into play and result in, for example, a change in the project's specifications or expected completion date.
Assignment 7. Translate into English. Make use of the words given in this unit.
Если вести разговор о создании и введении новой продукции, то основой маркетинга на предприятии являются потребности людей. Желания и вкусы человека переменчивы, так как на них влияет ряд экономических, социальных, национальных, природных обстоятельств. Исходя из этого, основа маркетинга все время меняется, и это отражается в особом направлении маркетинга: создавать такие новые товары, которые удовлетворяют новые потребности и дают возможность выиграть в условиях конкуренции.
Говоря о новом товаре, целесообразно определить, что это такое. С точки зрения маркетинга, новый товар – это:
Товар, не имеющий аналогов на рынке, так как является итогом новых открытий и изобретений, как следствие качественных прорывов в науке.
Товар, который имеет усовершенствование по отношению к товарам – аналогам, имеющимся на рынке.
Товар рыночной новизны, т.е. новый только для данного рынка.
Старый товар, который успешно нашел себе новую сферу применения.
Инновация продукции считается важной частью политики развития продукции. Новые продукты только тогда могут оправдать ожидания, когда к их развитию и введению марки фирма подходит системно.
Новые продукты могут терпеть неудачу – риск при введении новой продукции так же высок, как и ее шансы на успех. Ключ успешной инновации – во всеохватывающем планировании и систематическом процессе развития новых продуктов.
Процесс принятия решения проходит по следующим фазам:
Поиск идей продукции.
Источниками таких идей могут служить сами потребители. Все, что делалось, делается и будет делаться, должно отвечать их желаниям.
Начальным этапом все же является выявление запросов и их формулирование с помощью опроса потребителей, учета и отбора их предложений и критических замечаний.
Источником новой идеи могут быть ученые, так как, опираясь на результаты своих исследований, они могут подсказать идею. Помощь в разработке идеи могут оказать люди, работающие в торговле, системе сбыта, а также различная информация о деятельности конкурентов.
Выбор идеи.
Нельзя отказываться от тех идей, которые могут принести коммерческий успех. Для этого необходимо выяснить:
Насколько идея согласуется с коммерческой целью предприятия.
Соответствует ли идея производственным, сбытовым, кадровым и технологическим возможностям предприятия.
Развитие концепции.
На данном этапе разрабатывается проект, затем конструируется, строится модель, затем следует построение опытных образцов и выпуск серии.
Разрабатывается проект рекламной кампании, прогнозируется цена и объем сбыта.
Развитие стратегии маркетинга и развитие продукции.
Сначала испытывается товар на ограниченном рынке до его выхода на большой рынок. Прогнозируются и оцениваются шансы на успех.
Апробирование рынка (тестовый рынок).
С помощью маркетинга производится апробирование элементов маркетинга (реклама, упаковка, цена, сбыт), выбирается масштаб ограниченного рынка, длительность проведения продаж, оценка результатов.
Введение в рынок.
Положительная окончательная оценка результатов дает возможность принять управленческое решение начинать массовый выпуск товара.
Новинка рынка – это совершенно новый продукт, который является новым на рынке или представляет собой новое решение проблемы для другой продукции.
Новинка предприятия – продукт, являющийся новым вариантом уже имеющейся продукции других фирм.
Assignment 8. Study the Active vocabulary and give the Ukrainian equivalents of the words and word combinations
| 1.After-sale service 2.At the bottom of a range 3.Brand-switcher 4.Broad meaning 5.Competitor’s niches 6.Credit facilities 7.Distinguish 8.Growing, stable or declining sales 9.Holiday resorts 10.Life cycle stages 11.Line-filling 12.Line-stretching 13.Maintenance 14.Manufacturing company 15.Market growth 16.Market share 17.Multi-brand strategy 18.Product line 19.Soap powder 20.Store 21.To augment 22.To carry out 23.To constitute a product mix 24.To dilute a company’s image 25.To fill shelf space in shops 26.To market various products under individual brand names 27.To offer for sale 28.To produce variations on existing items 29.To reach new customers 30.To re-evaluate 31.To satisfy a need or want 32.To utilize excess production capacity 33.Vending machine 34.Warranty (guarantee) |
Unit 10. Marketing
Part 1. Defining marketing
Assignment 1. Here is a definition of marketing. Complete it by inserting the following verbs in the gaps.
design, develop, identify, influence, modify, persuade
Marketers have to (1)................ or anticipate a consumer need; (2)................ a product or service that meets that need better than any competing products or services; (3)................ target customers to try the product or service; and, in the long term, (4)............ it to satisfy changes in consumer needs or market conditions. Marketers can (5)............. particular features, attractive packaging, and effective advertising, that will (6)..............................................consumers’wants. Marketing thus begins long before the product or service is put on the market; it combines market research, new product development, distribution, advertising, promotion, product improvement, and so on.
Here is a second definition of marketing (as opposed to selling):
There will always, one can assume, be a need for some selling. But the aim of marketing is to make selling superfluous. The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself. Ideally, marketing should result in a customer who is ready to buy.
(Peter Drucker: Management: Tasks, Responsibilities, Practices)
What do you think of this definition? Can selling really become superfluous, even if the customer is ready to buy? Or is there one important aspect of business that this definition overlooks?
Can you think of any examples of products for which marketers anticipated a consumer need (i.e. products you had never imagined needing before they were developed)?
Assignment 2. Match up the words or expressions with the definitions given below:
1 distribution channel
2 to launch a product
3 market opportunities
4 market research
5 market segmentation
6 packaging
7 points of sale
8 product concept
A all the companies or individuals involved in moving a particular good or service from the producer to the consumer
B an idea for a new product, which is tested with target consumers before the actual product is developed
C attributes or characteristics of a product: quality, price, reliability, etc.
D dividing a market into distinct groups of buyers who have different requirements or buying habits
E places where goods are sold to the public - shops, stores, kiosks, market stalls, etc.
F possibilities of filling unsatisfied needs in sectors in which a company can profitably produce goods or services
G someone who contacts existing and potential customers, and tries to persuade them to buy goods or services
H collecting, analysing and reporting data relevant to a specific marketing situation (such as a proposed new product)
I to introduce a new product onto the market
J wrappers and containers in which products are sold
Assignment 3. Look quickly throughthe following text and decide which paragraphs are about these subjects:
- identifying market opportunities
- the marketing mix
- the selling and marketing concepts
- the importance of market research
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