Factors Involved While Deciding New Product or Service

Introducing a new product in the market requires meticulous planning and relevant ideas put together after several rounds of discussions and brainstorming sessions among employees associated with the organization. There are several factors which go a long way in deciding how and when a new product should be launched so that it is not only accepted well by the target audience but also outshine competitor’s offerings.

Let us understand the factors in detail:

The first and foremost deciding factor for an organization to launch a new product or service is to understand whether it has individuals who are equipped with right knowledge and skills to contribute effectively towards manufacturing a new product or designing a new service. Identify individuals who you think have the passion to think out of the box and can be a part of the product development team. Not every person is capable of doing things differently.

Organization needs to be very careful while picking candidates as one wrong individual and he/she would screw up the entire process. Infrastructure, raw materials, machinery, reliable vendors and so on also play an important role in deciding the development of new products. Organizations need to ensure that they have the latest technology and adequate power back up before they decide to manufacture a new product.

Once the product team is finalized, individual’s concerned need to sit together on a common platform to brainstorm and discuss as to what all features and specifications they would like to see in their new product.

Competitor analysis is extremely crucial at this stage. Carefully study their website, brochures, catalogues to understand what all they are offering so that you design a product which is not only better than them but also provides additional features and benefits.

Trust me, in today’s scenario, only the best survive and rest all perish in no time. Lay emphasis on research and development. Do not ignore minor things. In most of the cases, minor problems ignored in the initial stages lead to serious complications later on.

Prepare a checklist and make sure you have checked each and every minute detail before finally deciding on the new product. Everything has to be on paper. In most of the cases, people forget verbal discussions, the moment they step out of the meeting room. Do not ignore the risk factors involved with the launch of a new product or service. Ask questions among yourselves.

For example - If you own a travel company and decide to introduce a new and exclusive package for your loyal clients, do keep in mind the demerits or problems which might crop up at later stages and whether you are ready to face customer complaints or any other adverse situation and come out with a solution.

Funds available with the organization certainly play an essential role in deciding a new product. If you do not have adequate funds, identify an external party /bank that can finance you throughout product development. Budgets need to be allocated carefully.

Another important factor deciding the development and eventually launch of new products is definitely working on the marketing and promotion strategies. Even the best of product would lose its charm if it is not promoted well. Find out a good advertising agency to design catchy promotional materials which attract your target audience, make them aware of the USPs of your products and finally prompt them to invest in the same.

After sales service is something which should never be ignored especially when you are planning to launch a new product or service.

Proper planning is important. Teams need to coordinate among themselves and deadlines need to be strictly adhered to. Make sure your quality team is in place which ensures final product is market ready with no defects.

As an organization, you need to know your objective of introducing a new product in the market and how this product will increase your revenues. Goals need to be clear.

❮❮   Previous Next   ❯❯

Authorship/Referencing - About the Author(s)

The article is Written and Reviewed by Management Study Guide Content Team. MSG Content Team comprises experienced Faculty Member, Professionals and Subject Matter Experts. We are a ISO 2001:2015 Certified Education Provider. To Know more, click on About Us. The use of this material is free for learning and education purpose. Please reference authorship of content used, including link(s) to ManagementStudyGuide.com and the content page url.