Group Members: Malik Shan 0014

Khizer Rehman 0039

Adil Kamran 0038
Samar Abbas 0046

Class: BBA (Hons)

Assignment No: 3rd
Submitted To: Professor Saeed Waris
Subject: Marketing Management
Date: 06/26/2016
Day: Saturday

Challenges in New Product

Development
Product development refers to the entire process of conceptualizing ideas,
designing, developing and eventually introducing a new product or service in the
market so that it not only outshines competitors but also earn huge revenues for the
organization. Launch of a new product definitely raises the expectations of endusers who look forward to something which fulfills their needs and also does not
burn a hole in pocket.
Coming out with a new product is not that easy as it seems to be and requires
focus, vision, able guidance and working out even the minutest details. There are
many challenges involved in new product development and it is essential for the
organization and employees associated with it to overcome the same before taking
the final plunge.
The first and foremost challenge is to bring skilled people on board who can
contribute effectively towards the development of a new product. Launching a new
product requires thorough market research, surveys, meeting clients to understand
their buying behavior and preferences. Organizations need to do their homework
carefully in the beginning itself for long term success. Not many people are quite
comfortable moving out in the field, talking to end-users to find out what type of
product would be an instant hit among them. If such people are entrusted the
responsibility of developing new product, it would be extremely difficult for the
brand to find acceptance among target audience. Data collection, surveys, studying
market trends are extremely crucial in new product development and wrong people
doing the same would lead to wastage of company resources. Identifying the right
individual who has the passion to think out of the box and doing things differently is
a big challenge in new product development. Employees who work just for salary
would not be able to do justice in such a role.
Paper work, sorting out legal matters, necessary permissions from external
(government agencies), copyright issues requires undivided attention and pose to
be a major threat in new product development. Organizations need to ensure they
have individuals who are excellent in tie ups, liasoning and eventually getting things
done. Make sure you have someone who can arrange for permits, product licences
so that you do not land up in soup.
Before investing, it is essential for the organization to have the right technology,
machines, and infrastructure which support the manufacturing of new product. If
you do not have the right kind of machinery, delivering new product within the
stipulated time frame can be a major challenge. It is essential for the organization
to have experts who can operate high- end machines and also know their jobs well.

Believe me, it is foolish to think about developing a new product unless and until an
organization has individuals who are not only technically sound but also can design
product specifications and work on specific parameters.

Most of the times, problems crop up due to financial constraints. Organizations need
to allocate budgets carefully so that they do not fall short of money towards the
end. Remember, it is crucial for organizations to work on financial challenges before
even thinking of launching a new product in the market. Do not forget that
advertisements, brochures, pamphlets, promotional campaigns also involve a
certain cost.
Promoting a product can also be a challenge sometimes. You need to carefully
design your promotional material so that it does not hurt the sentiments of any
particular group or religion. Organizations need to be prepared to face criticism or
negative feedbacks from customers after the launch of their new product. In cases,
where the new product could not create a market for itself, you need to rethink and
relaunch the same. Be prepared for the worst and learn to face tough times with a
smile.

Organization Arrangement
New tactics are required to get the notice you deserve. So here are some steps for a
successful launch in these fickle times:

1. Start early. Dont expect reporters to write about you when you want. Get a
head start and begin preparing long before you plan to launch. A rolling
launch is a great way to keep the conversation going. Start your outreach
activities 6-8 weeks before the official launch date and then keep the news
going up to, and beyond the official launch date. The steps below describe
how to do this.
2. Make the product or service available to important influencers as a first step.
Influencers can be friendly customers, prospects, or even bloggers who have
an sizable online presence. Encourage these people to use your product or
service and then write review articles or posts. These folks are also great
resources to talk to analysts about your offering pre-launch.
3. Brief industry analysts during this early phase as well. Scheduling calls with
these folks takes time so do this early. Invest the time to write compelling
briefing requests. These guys are busy, so you will want to make sure your
meeting request clearly states why it is worth their time to hear about your
offering.
4. Seed the social space with "leaks." Target people who are naturally eager to
learn about your offering. For example, coming soon tweets and leaked
photos of your product create an aura of intrigue that builds interest. Apple is
a master of this technique.
5. Dont expect a "big bang" release unless your product or service is truly
revolutionary or if you are Microsoft or Apple. Unless you have a massive
launch event planned, the official launch date should only signify the day
your product is actually available.
6. Keep the release rolling. You dont know when reporters will have time to
write, so give them some opportunity to write about the offering after the
official launch date. Continue to produce fresh news like announcements
concerning novel uses of the product, customer stories, details about how the
offering provides return on investment (ROI) to customers, etc.

7. Do something unusual during the release cycle. Some examples include

creating a funny video, doing a stunt centered around an industry event,
publishing a survey that supports the value of your product, or creating an
interesting infographic that describes the need for your product. As an
example, for a recent product launch, I created a mock public service
announcement (PSA) website that warned of the dangers of using our new
mobile product while walking. The irony created an enormous buzz around
the launch and even led to a huge spike in free product downloads. You can
check it out here.
8. Get partners involved. Channel and marketing partners who have a financial
stake in the success of the launch are natural allies. The more people that are
talking about the release, the better chances it will get pickup.
9. Make it easy for people to learn more about your product with free trials,
downloads, product videos, and demos.
10.Ignore the elements of the launch that do not drive business. Unless your
offering appeals to a mass consumer audience, dont focus on the number of
Facebook likes and Twitter followers you collect. Rather, use these social
channels for more meaningful engagement. See who is talking about your
offering online and then make contact with them. See how these folks can
help you further promote your offering within their social circles.

The 5 Stages to Consumer Adoption Process

Stage 1 Product Awareness
This first stage is about creating awareness that your product is in the market. It is
important that your company develops a successful avenue for your consumers to
become aware of your product. If consumers do not know your product exists, than
it might as well not exist! Create marketing material. These can be one-sheets,
video teasers, images, and landing pages. Make these marketing materials easily
accessible. Utilizing creativity and wit is a great way to engage consumers in this
awareness stage. I recommend creating a strong social presence for said product.
In the era of social media, many tools are available in the market that provide
companies with the techniques and methods to increase product awareness through
social channels enabling them to reach a large number of customers at a low cost!
Stage 2 Product Interest
In this stage consumers are ready to learn more about your companies product
and / or service. Your organization must guide the consumer through the interest
stage by providing easily accessible information on your product. Among the
methods used in the todays business landscape include a website describing the
product, blog posts, tutorial or instructional videos, white papers, and other sources
of info that the potential consumer can discover and review.

Stage 3 Product Evaluation

Prior to purchasing, consumers examine, compare and evaluate the product. Such
behavior increases in intensity and need once the item in question is more
expensive, sophisticated and complex, or critical. Consumers are searching for
information. We are now finding that consumers go online and utilize social media
channels to ask other individuals about your product or service. In addition, they
find online reviews and recommendations. In order to simplify a customers search
and evaluation of your product, I suggest creating information that outlines the
difference between your product and other similar products, or differences within
the different products and services you sell. Outline what separates your product
from others, and emphasize on strength. Another great system to utilize is the
webinar. This platform allow you to communicate with potential customer in depth
information about your product and provides time for Q&A.
Stage 4 Product Trial
This is the stage where the consumer kicks the tires. Nothing helps a consumer
make a decision about your product more than actually trying your product out!
There are many ways this is accomplished. For example, your company can provide
your consumer with a free trial or a proof of concept campaign. In this stage it is
very important to set the customer expectations correctly and deliver on said
expectations.

Stage 5 Product Adoption

When the consumer enters the product adoption phase, he/she is ready to purchase
your companies product. This is the critical stage that businesses need to get their
consumers to. When the customer is here, you need to make the payment process
simple, intuitive, and pain free. In addition, you need to ensure that the consumer
can easily obtain the product. If you make it to and through this last phase
successfully, than you can take money to the bank A job well done!