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:
The commercialization phase of the new-product development process involves the final steps of bringing a product to market. During this phase, a company executes its strategies to launch and distribute the product to the public. A common strategy used during the product launch is rollout, where the product is introduced gradually into the market, typically starting in one geographic area and expanding to adjacent regions over time. This approach allows the company to test the product’s performance, customer reception, and logistics on a smaller scale before committing to a larger-scale launch.
The rollout strategy helps companies manage the risks associated with new product introductions. By launching the product in stages, companies can observe how the market responds, identify potential issues in distribution or marketing, and make adjustments before expanding into additional markets. The staged launch also helps in building momentum and creating buzz around the product as it reaches more regions.
For example, a company might start by introducing a new product in one city or region. Once initial feedback is gathered, and the product is successfully marketed, the company will expand the launch to neighboring cities or states, eventually covering the entire country or even global markets. This gradual approach reduces the likelihood of failure across a broad market and helps control costs.
Now, let’s review the other options:
- a. market development: This refers to the strategy of entering new markets with existing products, not the process of introducing a new product.
- b. concept testing: This is an earlier stage in product development, where the company tests a product idea with potential customers to gauge their response before creating a prototype.
- d. market extension: This involves taking existing products to new geographic markets, but it is not related to the gradual introduction of a new product.
- e. jamming: This is a term used in marketing to refer to efforts that disrupt or block a competitor’s marketing messages and is unrelated to the gradual introduction of a new product.
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