Marketing and the Product

Marketing and the Product

Marketing and the Product

Is the market for which it is intended one that is subject to extreme fluctuation? Will it require special servicing? Can the company handle this? Will it be necessary to make various sizes or various styles of the new product? Will it be necessary to stock

a range of replacement parts? If one is operating in the industrial goods field, it will be necessary to check whether the proposed new product will clash with the products of one's customers.

These are just a few of the questions which the ONLINE MARKETING Manager must ask before he makes up his mind to promote a new product idea.

He must also investigate the available production capacity and discuss with those concerned the feasibility of making the new item with the company's existing production resources. What about the supply of raw materials or bought-in component parts? Can the company obtain these advantageously? Are there any particular advantages in bulk-buying? Can this new product be made on existing plant or will new investment be needed? If the existing plant is suitable, will the advent of the new product provide for better utilization than is the case with the company's current range of products?

On the other hand, it may be thought that the existing plant cannot accept any more work. In this event, enquiries must be made into the possibilities for expansion. This will bring into question the availability of land and the possible limitations on its use imposed by local planning authorities.

Finally, one must ask whether the company has, in fact, any knowledge of the manufacture of this kind of product and whether its production management and its labour force possess the necessary skills for the work involved.

The capacities of the sales department should also be considered. Can it cope with the anticipated sales of the new product with the existing sales force? Will new salesmen have to be recruited and trained? How about transport and ware-housing facilities? Will new depots have to be established and additional vehicles put on the road? Does the company know anything about the selling of this kind of product? Has sufficient consideration been given to the possible special selling skills that may be required?

Before a final decision can be made, the ONLINE MARKETING Manager must calculate the additional financial resources which the company must invest in the new product. He must establish whether the company is, in fact, financially strong enough to risk launching a new venture which may tie up capital resources for anything up to three years before the new product is established and begins to show a profitable return. Indeed, he should also ask himself if there are not better uses to which these resources can be directed? Can they be more profitably employed in an expansion of the firm's existing activities or in some alternative project which promises a better return?

Next Step: - Forecast 2015 Retail Distribution 2012