Answer to Question #244403 in Marketing for Sthando

Question

Assume you are part of the Sneaker Shacks marketing team. The company wants to
diversify its product and service offering. You suggest that the new product development
process is used. Provide a practical application of each step of this process to come up
with a new product / service that The Sneaker Shack can implement and whether this
idea would be feasible in the market. (This means that you need to provide examples of
what you came up with at each step and not provide any theory in your answer – give a
description of what you would have discussed in your team during each stage – any
reasonable scenarios / assumptions can be made when answering this question.) (10)
i. Idea generation (2 marks)
ii. Concept development and testing (2 marks)
iii. Marketing strategy development (2 marks)
iv. Product development (2 marks)
v. Commercialisation (2 marks)

Answer 1

i.Idea generation

This is the process of creating, developing, and communicating ideas that are abstract,concrete or visual.Company analyses and examine market trends to generate hundreds or even thousands of potential product ideas. Employees and the research & development department of the company are great internal sources. whereas external sources are also very helpful.these are customers, suppliers, competitors, distribution channels, government,educational institutions and focus groups.

There are so many methods of idea generation

the storyboarding method

sketching as a group

creating word banks

the thinking hats techniques

trust your employees

give your team flexibility etc...

ii. Concept development and testing

Concept development and testing is a crucial stage in the new product or service development.It takes place early on in the process and helps to identify hey perceptions, the user needs and wants to be associated with the product or service.

o-phase stage in the development of a new product in which potential buyers are presented first with the ideas of the new product and later with the product itself in final or prototype form,in order to obtain their reaction.

there are some steps for concept development and testing

list the benefits of the product and problems it solves

analyze the target audience or buyer persona

conduct competitors analysis

iii. Marketing strategy development

It is a strategic step taken by a company to develop the existing market rather than looking for a new market. The company looks for new buyers to pitch the product to a different segment of consumers in an effort to increase sales.

some features of marketing are

it involves activities with the transfer of goods from the producer to the consumer

it aims at customer satisfaction

it deals with product planning, development, pricing, packaging, branding, advertising, selling, etc..

Product, price, promotion, place, and people are key marketing elements used to position a business strategically.

iv. Product development

The first and most important for any new development is to provide new value to the customers. It is the process required to bring a product from being a concept to reaching the market.

The seven stages of the new product development process are as follows

idea generation

idea screening

concept development and testing

building a market strategy

product development

market testing

market commercialization

v.commercialisation

It is the process of bringing new products or services to market.

Three common methods are used for commercialization

joint research contracts

exhibitions

spin-offs

below are some reasons for commercialization

reduction in operational inefficiency

revenue generation