Stacey and Evan are preparing budgets for a new product as well as finalizing plans for the full-scale manufacturing and marketing of the new Genie-Vac. They are in the phase of the new-product development process.
a. test marketing
b. business analysis
c. concept testing
d. product development
e. commercialization
The correct answer and explanation is :
The correct answer is e. commercialization.
Explanation:
The stage of commercialization is when a company finalizes its plans for the full-scale manufacturing and marketing of a new product. It involves all activities needed to launch the product in the market, including setting the final price, planning promotional campaigns, scaling up production, and ensuring the product reaches retailers or consumers.
In the case of Stacey and Evan, they are preparing budgets and finalizing plans for the manufacturing and marketing of the new product, which are key components of the commercialization phase. Commercialization happens after successful testing and adjustments have been made to the product (in prior phases like product development and test marketing), and the company is ready to produce and sell the product on a larger scale.
Here’s a breakdown of the stages leading up to commercialization:
- Test Marketing: In this stage, the product is released to a limited market to see how it performs in real-world conditions before the full launch. This is typically used to gauge consumer response and make final adjustments.
- Business Analysis: This involves evaluating the product’s potential market size, cost, and profitability. It helps in determining whether the product is worth pursuing further. Financial projections and ROI (return on investment) are considered.
- Concept Testing: Before moving forward, companies test the initial ideas or concepts with target consumers to get feedback on its appeal, utility, and desirability.
- Product Development: After successful concept testing, the product is developed and refined. Prototypes are made, and the product’s design is finalized, but it’s not yet produced for mass distribution.
- Commercialization: This is the final phase, where full-scale production begins, and the product is marketed to a broader audience.
Thus, as Stacey and Evan are focusing on finalizing the plans for full-scale manufacturing and marketing, they are in the commercialization phase.
