New product development is an essential key for a company to survive or stay competitive in the highly changed business environment nowadays(Annacchino, Marc A, 2003). Although technology plays an important role in the development of new products, the role of marketing should not be underestimated. A result illustrates that companies with a marketing department which has strong capabilities and skills are more likely to be more successful with their new products(Drechsler et al.,2013). Hence this essay will investigate the role of marketing played in the different stages of new product development and launch. And this paper will use the new energy drink brand Wakee as an example to see how marketing mix can be applied to support the marketing …show more content…
According to the definition gave by Kotler and Keller(2006), marketing is a process for an organization to create, communicate and deliver value to their customers, and at the same time manage customer relationships to benefit stakeholders and the organization itself. The definition above illustrates the importance of value exchange between customers and companies. From the definition, the role played by marketing is to help company create value and make sure it is delivered to their customers correctly. There are many reasons which can lead a company to failure in the development and launch of new products. And some of the reasons behind those unsuccessful products can be categorized into one major reason, that is, the company just fail to bring value to customers. For example, the product may be launched at bad timing, designed poorly, priced higher than customers can afford or the companies fail to advertise the products well(Kolter et al.,2013). Therefore companies must think carefully what value they are going to convey to their customers while developing new products and develop marketing mix strategy to help them communicate to consumers …show more content…
In the maturity stage, the sales of the product slow down, competitors might begin to decrease the price of the product or spend more on the promotion. In the decline stage, the sales and profits of product decline and some firms might choose to withdraw from the market(Kolter et al.,2013). The strategy companies use in the maturity stage should focus on maintaining brand royalty, holding customers, and defend the brand with promotion. Furthermore, companies should keep maintaining brand awareness to stimulate repeat purchase(Jobber,2010). For example, Wakee maintained their brand awareness by kept advertising the product on telly, like sponsored tv programmes or had product placements in TV series. In the decline stage, instead of trying to boost sales, companies should come up strategies to improve marketing productivity. The brand royalty which has been built up can be used by the company in the future(Jobber,2010). For instance, Wakee stopped promoting the product ,instead, they tried to build brand royalty by creating customer engagement and showing their corporate social responsibility. They gather customers’ feedback by online survey and held events like bottle recycling project to show corporate social
As stated in the case, “the market for energy drinks was growing; between 2010 and 2012, the market for energy drinks had grown by 40%. It was estimated to be $8.5 billion in the United States in 2013 [and] forecasts projected that figure to reach $13.5 billion by 2018” (pg 5). However, much of this market’s revenue -- 85% in fact -- is dominated by five major brands, while the remaining 15% is split between approximately 30 regional and national companies. (pg. 5). With this saturated market, it might not be best for Crescent Pure to enter as a completely new product to the industry, as there is the possibility that it will be squeezed out of the profit shares by more established brands -- especially if it is not properly secure in its identity. In addition, while the market for energy drinks appeared to be growing at an exponential rate compared to the market for sports drinks -- which increased only 9% in five years and would be at approximately 60% of the rate for energy drinks in 2017 (pg 6) -- the consumers appeared to be wary of partaking in the market for several reasons, which would potentially harm the reach of Crescent Pure. These concerns included rising news reports discussing the safety of energy drinks (pg. 5). Taking into consideration the data provided in the case that concerns reasonings of why consumers choose specific drinks over others, there
Marketing is the process of searching for options for accumulating profits by identifying the demands of the people and satisfying their needs with appropriate products. In today’s globalized business world, marketing can play a vital role in establishing trade blocks all over the globe with competitive and cutting edge market, research, policies, strategies and activities.
A characteristic of the marketing concept is customer orientation. Business activities are mostly engaged to produce a satisfied customer. They are there to Stress on the desires and wishes of a customer this keeps businesses on track with their target market. The best marketing decisions are completed on the foundation of making a massive impact in the market and towards customers. The consumers/people
Benetton can use Introduction Stage to launch a new product which will help to create a stable product. The growth stage will help them see if the company is making money from the product and if it’s sustainable. The maturity stage is when the product is stable and the aim for the manufacturer is now to maintain the market share they have built up this will mean that Benton can actually see how their product keeps on selling. The Decline Stage will show Benetton eventual when the market for a product will start to shrink. This shrinkage could show up to Benetton as normally the market can be
It provides you with a great opportunity to increase brand awareness and engage more frequently with your target market audience. Create innovative marketing campaigns that allow your
Pepsi's hope is to usher in a new era, and to give them a clear-cut advantage over their rival, Coca-Cola. By following closely the six steps of the new-product development process, the company could expect such benefits as: improved teamwork, less re-working, earlier detection of likely failure, and higher success rates. Rix, Peter, 2001, Marketing, A Practical Approach. Stage One: Generating New Product Ideas. The first step for Pepsi Cola to undertake is to generate ideas for the new product.
” Chartered Institute of Marketing defines it as the management process responsible for identifying, anticipating and satisfying customer’s requirements profitably. However, there exist numerous definitions of marketing, it is always about “meeting existing needs and anticipating future needs” (Bagozzi, 1975). The marketing concept is a kind of recipe how a company can achieve its goals by understanding the exchange partners and associated costs, being a response to external opportunities and threats and to internal strengths and weaknesses as a means of competitive advantage (Houston, 1986). Bagozzi (1975) underpins this viewpoint, arguing that marketing is much about the exchange paradigm which focuses on the question why parties take part in exchanges and how these work.
Marketing is very important to the success of a business. Before people can buy a product or service they have to know about it. However, marketing entails more than just letting people know what your company has to offer. Throughout this paper, I will define marketing, offering my personal definition as well as more formal definitions from other sources. Furthermore, I will explain to the reader the importance of marketing to organizational success giving real world examples in support of this explanation. The field of marketing can include many things. I believe, however, the most important thing which it should include is communication with customers as to the value and benefits of using that particular company's products and services. It should help to establish the business's niche in the industry and distinguish it from other such businesses.
In this world, creating a new product, as good as it may be, is not enough. The success of any product, in this day and age, depends grandly on the way it is presented to the market. Marketing is responsible in assuring a successful launch of a product, new or reinvented, and to assure its sustainability in this competitive world. For those reasons, billions of dollars are spent each year on tools and strategies to improve marketing research and predict the success of a product: many marketing firms form focus groups, do trials and conduct many tests just to end up with a fairly high percentage of failures.
emerging or new market. It can originate from new technology or new market opportunities (Eliashberg, J., Lilien, G. L., & Rao, V. R. 1997). Literature defines product development as exploiting an untapped market opportunity and turning it into a value product for customer satisfaction. Development and introduction of a new product requires extensive research on understanding customer needs, market structure, emerging trends and analysing the internal & external competitive market environments. To evaluate customer satisfaction previous researches provide strong relationship between customer satisfaction and product quality, product features and value for money. ***
Due to the importance of customer orientation in organisation (Grublješič and Jaklič, 2014), companies tend to develop their new products and services in order to response with the increase of customisation and product quality (Zhao et al., 2014). According to Krishnan and Ulrich, (2001), new product development
Another reason a product can fail is poor execution of the marketing mix, which could be the brand name, distribution, the packaging of the product or the price of the product (Bethel University, 2011). A company should do a vast amount of work before they release a product. The marketing needs to be clear and concise so the consumer knows what the product is and how to use the product properly. There should be no guesswork in a product by a consumer. A clear marketing strategy should leave the consumer wanting their product, not wondering about the
According to Kotler (2012), Marketing is about identifying and meeting human social needs, thus it is not only about advertising and promotion it is more than this. It includes setting competitive price, communicating effectively with potential and existing customers and also introduction of new products.
Too often, a marketing function is misunderstood, because many people do not understand what is meant by ‘Marketing’.
According to Blythe (2012), marketing is a management process which identifies and fulfils customers’ needs and at the same time, makes profit. By having appropriate marketing concepts, Charles and Keith manages to develop within few years from an unnoticeable small shoe store to an international footwear brand which occupies a significant place in the industry.