1. Commercialization

2. New-Product Planning Process
1.
Idea
Generation
2.
Product
Screening
3.
Concept
Testing
4.
Business
Analysis
5.
Product
Development
6.
Test Marketing
7.
Commercialization
Long-term planning is required
to launch a successful new
product.
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3.  This step is the final step in New Product
Development Process by which you are
implementing your full marketing plan, and
launching your product in the marketplace to be
available for your target segment.
 Once this step comes, you can’t modify, change
on your product (because your product passes to
the production stage in this step and become
commercialized product).
Commercialization or
Product Launch
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4. Commercialization
Commercialization
The product’s introduction to its
full target market, corresponding
to the introduction stage of the
product life cycle
1 Great product
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5. Commercialization
Commercialization is the introduction
of the new product into the market
 When to launch “ Timing”
 Where to launch” Location”
 Planned market
rollout over time.
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6. Commercialization
Production
Inventory Buildup
Distribution Shipments
Sales Force Training
Trade Announcements
Customer Advertising
Ordering Materials
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7. Commercialize the plans and prototypes from
development phase, begin distribution and sale
of the new product (maybe on a limited basis)
and manage the launch program to achieve the
goals and objectives established.
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8.  Burger King’s French Fries
• Regional Rollouts
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9.  Speed as a Factor in New-Product Success
• Time to Market (TtM)
• Parallel Development
• Fast Prototyping
THE NEW-PRODUCT PROCESS
STAGE 7: COMMERCIALIZATION
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10. Why Speed to Market?
 Markets are getting more specialized
 Intensified competition
 Changing technology
 Changing tastes
 Rampant copying
 Gaining shelf space early
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11. COMMERCIALIZATION
 A public offering of the product to the
marketplace
 Two forms
 Commercialization - Nationwide
 Roll Out – limited geographic areas – one at a
time
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12. Roll out – example
 Tio Sancho rolled out its
new non-fracturing taco
shell against the largest
Tex-Mex food
manufacturer – Old El
Paso.
 Tio Sancho was small
with few resources
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13. Roll Out vs. Commercialization
Commercialization Roll Out
 very Costly
 Complex
 Hits the whole market
simultaneously
(Comprehensive)
 Less expensive
 Simpler
 Risks being copied in
the regions not
covered
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14. Commercialization
Production
Inventory Buildup
Distribution Shipments
Sales Training
Trade Announcements
Customer Advertising
Steps in
Marketing a
New Product
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