Time to market with respect to the commercialization plan and value creation
Commercialization is a process where the organisation introduces new products in the market. It also refers to the process through which the organisation or the company introduces a new production process in the market. When the company is introducing the product in the market, time is a crucial factor to consider. On the other hand marketing refers to the process through which the company communicates the value of the products that it is producing or the services that it is offering to the public. The chief reason behind the marketing by the company is to create awareness among its customers and other would be customers for the sole purpose of selling the products they produce (Withers, 1992).
Therefore it remains one of the most critical functions of any business which must be timely to attract huge volumes of customers. The link between the material requirements of the society and the pattern of response economically is the societal point of view with regard to marketing. Marketing can be viewed from a different perspective where it may be regard as a organisation function. As such it will therefore involve a number of processes for instance creating value on the products, delivering the product to the customers and finally they communicate the value created in the product to the customers. The organisation on its part will have a duty of maintaining the good customer relation so that it can accrue benefits on its self and benefit the other stakeholders.
The rationale of this paper is to evaluate how marketing should be done. The paper addresses the concept of marketing and commercialisation, and discusses them into details and how effective the two concepts are important with regard to the commercialisation plan. In addition to that, the paper addresses the issue of value creation on the products to achieve the customer’s satisfaction.
Marketing can be said to be a science that every organisation must learn to effect at the right time if they are to achieve maximum benefits for the organisation. The target market for the product for which value has been created must be well chosen through market analysis which will also involve market segmentation. Marketing also call for the organisation to understand the customers or consumers behaviour in relation to the way they make their purchases such that the customers will be supplied with goods that are superior in value. Market help people who want to buy the goods that are being marketed come across them and interact with them since markets are systems of many varieties procedures and institutions which allow different parties for instant the buyers and sellers to engage such that a fruitful transaction will take place. In addition to that, it also includes the infrastructures and social relations that aid the parties to the transaction to engage.
In the process of commercialisation, the luncheon of a product takes place. After launching the product several other activities takes place such as advertisement and promotional activities which are carried out with a high level of intensity. The pipelines of distribution on their part will receive many products that are meant for the specific target market. Basically the luncheon of a new product in to the market marks the end of the development stage of a new product. It is in the commercialisation part of the product where value in the product is communicated to the customers that a lot of resources are used. Lots of money is used for the purpose of sales promotion, advertising and other marketing efforts (Whitbread, 2002).
For commercialisation to be effected in the right way and in the right time, several issues have to be satisfied. Among the crucial issues that have to be factored in is the timing of the launch. In this case, the welfare and the environment that surrounds the organisation must be factored in. For instance, if the company luncheon of the new product will mean that the sale of the other products that the organisation is producing then the luncheon should not take place first. This is to allow the management address the issues that will lead to such a situation. If there is time such that the quality of the product can be improved such that the value of the product can be improved, the timing should be delayed to ensure that the product becomes the most valuable of all other products in the market. Another issue that have to be factored in before launching a new product into the market is the state of the economy. To this extent, if the market economy is down, it shall be deemed to be the most in appropriate time to launch the product. Commercialisation should be done when the market economy is on its better part (Australia, 1996).
Another issue that require to be addressed for an effective commercialisation is the launch location. A product may be launched in different location depending on the resources that the company has. Launching can be done in one place, in several regions, international and national fronts depending on the company’s operational capacities, managerial confidence and the resources at disposal. The small companies will launch their products in the attractive cities and maybe to several regions while the large will try to venture into national and international markets at once. Multinational companies will conduct a global roll out of their products where they introduce their products in different regions and countries. They have the capacity to do this because they have the resource and the capacity to uses distribution system that operate internationally to market their products.
The target consumers is the other issue that have to be addressed if commercialisation of a product is to take place. In this case, test marketing will be conducted to establish the viable market for the products. Innovators, opinion leaders, heavy user and early adopters form the primary consumer groups. This help in ensuring that the buyers in the market place adopt the product during the growth period of the product. Formulation of an action plan by the company will be inevitable if the above decision have to be implemented.
Value creation with respect to the commercialisation plan is another issue that is of great importance and therefore require to be addressed. For a proper market mix to be achieved, it requires that the value be created with respect to customers. Customer value refers to the perception that the customers have with regard to what they receive from the company. The customers will evaluate what they are required to sacrifices to what they are going to obtain from the company. Research has it that there are two aspects in relation to customer’s value. There is the perceived value and the desired value. Desired customer value refers to what the customer desire from the product or the service that they acquire.
On the other hand perceived value refers to what the customer believes to have benefited from after purchasing the product and using it. For the organisation to be able to formulate the customer’s value proposition, they are required to assess the offerings in the markets currently. After assessing the current market proposition, the organisations will develop solutions that will meet the market need and provide the goods and services that are required in the market.
Before an organisation set an appropriate time for marketing, value addition strategies have to be developed with respect to the commercialisation plan. The organisation or any other company will have to first identify the different kinds of values that the customers are seeking. After the organisation have identified the different area that value should be added, they embark on the process of providing these benefits. There various values that the organisation can create for their customers.
Functional value-Functional value of a product is one of the values that the firm can add to the product for the sake of their customers. The functional value requires that the product itself be useful to the customer and to have the capacity to fulfil the desires of the customer.
Experiential value-Experiential value refers to the ability of the product to create appropriate experiences to the consumer. The product should evoke some memories to the consumers when they come across it.
Expressive value- The organisation should add value to their product such that they will be timely in the market. Expressive value will make the customers attach a psychological meaning to the product they are using. The organisation therefore has a duty to create product and deliver them to the customers in a hassle free manner which will create great consumption experiences (Pindur, 2007).
Sacrifice value- the organisation can attach a sacrifice or cost value on their products such that the sacrifice will be worthy to be associated with the product. The sacrifice value factors in the prices of the product to. The organisation have a responsibility of making sure that the customers feel they are paying for a price that is fair with regard to the value of the good or services they get from the organisation.
In conclusion, for the commercialisation plan to be effective, it requires that several factors be addresses comprehensively. In addition to that, it requires that value creation be done by the firm on their product and services. When these issues are well addressed, then it will be an ample time for the commercialisation process to begin and this time it will be successful.
Australia. (1996). Guide to commercialisation in the Commonwealth public sector. Canberra: The Dept.
Withers, J., & Vipperman, C. (1992). Marketing your service business: Plan a winning strategy. Vancouver: Self-Counsel Press
Whitbread, D., & Australia. (2002). Commercialisation. Canberra: Dept of Agriculture, Fisheries and Forestry
Pindur, D. (2007). Value creation in successful LBOs. Wiesbaden: Deutscher Universitäts-Verlag.