Market placing phase strategy

From CEOpedia | Management online

Stage of the product placing on the market is characterized by high expenditure on research and development and to promote a new product. In this phase, the risk of failure is very high, due to the possible actions of competitors.

Risks related to placing the product on the market

Introducing a new product to the market can be a risky venture, as there are several potential challenges that a company may face. Some of the main risks include:

  • Development costs: Developing a new product can be expensive, and if the product is not successful, the costs may not be recouped.
  • Market acceptance: There is always a risk that the new product will not be well received by the market. This could be due to a lack of consumer interest, a lack of understanding of the product's features or benefits, or strong competition from existing products.
  • Production and supply chain risks: There may be production and supply chain risks that can prevent the product from reaching the market on time or within budget.
  • Intellectual Property risks: There may be legal risks associated with the product, such as infringement of patents, trademarks, or copyrights.
  • Distribution and logistics risks: There may be risks associated with getting the product to market, such as logistical and distribution challenges, which can make it difficult to reach target customers.
  • Regulatory risks: There may be regulatory risks associated with the product, such as compliance with safety, health and environmental regulations.
  • Financial Risks: The company may be exposed to financial risks, such as the possibility of not recovering the investment made in the product.
  • Reputation risks: The company may also suffer from negative public perception if the product does not meet customer expectations or if it has negative effects on the environment or society.

Overall, launching a new product can be a complex and risky endeavor, and companies need to carefully assess the potential risks and benefits before making the decision to bring a new product to market.

Getting the most from this phase

To maximize sales in the market placing phase, companies should focus on creating a strong marketing and advertising campaign to increase awareness and interest in the product. Additionally, companies should focus on building relationships with key influencers and partners in the industry to increase visibility and credibility for the product. It's also important to conduct market research and gather feedback from potential customers to ensure the product meets their needs and address any issues before launch. In addition, companies can also consider to offer discounts or promotions to early adopters to generate buzz and word-of-mouth marketing.

Proposed actions

The dominant competitive position

  • vigorously push for market growth, maintain position
  • invest slightly faster than market growth

Strong competitive position

  • try to improve market position, vigorously increase market share
  • invest in a market rate of growth

Average competitive position

  • selectively or vigorously increase market share, selectively improve market position
  • invest selectively

Favourable competitive position

  • selectively improve market position
  • invest very selectively

Weak competitive position

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