During the commercialization phase of the new-product development process, a new product is launched in stages, starting in one geographic area and gradually expanding into adjacent areas. This gradual introduction of the product is known as:
a. market development.
b. concept testing.
c. rollout.
d. market extension.
e. jamming.
The correct answer and explanation is :
The correct answer is c. rollout.
Explanation:
In the commercialization phase of new product development, companies often introduce the product gradually rather than launching it on a massive scale all at once. This gradual introduction is called a rollout. The rollout process involves launching the product in stages, starting in one geographic area or market and expanding into adjacent areas or larger regions over time. The goal of a rollout is to allow companies to test the market, adjust marketing strategies, and fine-tune the product based on early customer feedback before a nationwide or global launch.
This strategy is particularly useful in managing risk. If the product launch faces challenges in the initial markets, the company can modify the product, marketing campaigns, or distribution strategies before expanding to other regions. Rollouts also allow companies to allocate resources more efficiently and manage production capacities in a controlled manner.
The rollout strategy is often used when introducing innovative products or services that require time to gain acceptance or when a company wants to maintain a certain level of exclusivity or anticipation around the product. By starting small and gradually increasing the availability, the company can build momentum, optimize supply chains, and gather important data on consumer behavior, which can influence future marketing efforts.
On the other hand, market development (option a) refers to introducing existing products into new markets, while concept testing (option b) involves evaluating new product ideas before development. Market extension (option d) is about expanding a product’s reach, often to different demographic or geographic segments. Jamming (option e) refers to a marketing tactic where a company creates a product that competes directly with a competitor’s product, trying to “jam” their efforts.
