Bukhara State University

5. Product Development:
During this stage the ‘idea on the paper’ is turned into a product on hand’. In other words, the idea is converted into a product that is producible and demonstrable. This stage is also known as ‘Technical Development’. During this stage all the developments of the product, from idea to final physical form take place.
Once the management decides to go ahead with the product idea, the proposal is now turned over to the engineering or production departments for the making of a product. But to start with, it is made only in small quantities.
6. Test Marketing:
Under test marketing, the product is introduced in selected areas often at different prices in different areas. These tests would provide the management an idea of the amount and elasticity of the demand for the product.
The objectives of tests marketing are:
(a) To evaluate a complete marketing plan including advertising, distribution, sales, pricing and others;
(b) to determine the promotional media mix, channels, etc.; and (c) to forecast the likely sales volume.
7. Commercialisation:
In this stage, the product is submitted to the market. Commercialisation is also the phase where marketing is most active in connection with the new product. This stage is considered to be a critical one for any new product and should, therefore, be handled carefully.
The following activities are usually undertaken during this stage:
(a) Completing final plans for production and marketing,
(b) initiating coordinated production and selling programmes, and
(c) checking results at regular intervals.
8. Market Entry:
Generally, a company does not put a new product into full national distribu­tion from the beginning. In commercialising a new product, market entry timing can be critical.
The company faces three choices:
(a) First Entry:
The first firm entering a market usually enjoys first mover advantages consisting of locking up some key distributors and customers and gaining reputational leadership.