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:
In the new-product development process, commercialization is the final phase before a product is made available to the general market. It involves the full-scale launch of the product, including manufacturing, distribution, marketing, and sales efforts. This is where all the groundwork laid in earlier phases, such as concept testing, business analysis, and test marketing, culminates.
- Test Marketing: This phase involves introducing the product in a limited market to assess customer response and gather feedback before the full-scale launch. Stacey and Evan might have already gone through this stage, but since they are preparing budgets and finalizing plans for large-scale manufacturing and marketing, they are beyond this phase.
- Business Analysis: In this phase, a detailed assessment of the product’s profitability, demand, and production costs occurs. This is essential to determine whether the product can be successful. While Stacey and Evan might have completed this, the emphasis is now on executing the launch plan.
- Concept Testing: This is where initial ideas for a product are tested with a sample of potential consumers to see if they would be interested in it. This stage helps refine the product concept before it moves further along the development process.
- Product Development: This stage involves designing and developing prototypes, determining the product’s design, features, and production processes. However, Stacey and Evan are now preparing the budget and plans for large-scale production and marketing, indicating that the product has already been developed and is moving toward commercialization.
Thus, commercialization is the correct phase, as it involves taking the product to market and finalizing all elements of its launch. This includes ramping up production, finalizing the marketing strategy, and ensuring that the distribution channels are in place. Once this phase is complete, the product is ready to reach a broad audience.
