Commercialisation
Commercialisation is simply
defined by Kotler and Armstrong (2012) as the process of actually bringing a
new product to market. It is the concluding stage in the NPD process. Lamb,
Hair & McDaniel (2009) state that commercialisation is the process putting
several tasks in motion: ordering product materials and equipment, starting
production, building inventories, shipping the product to field distribution
points, plus announcing and advertising the product to the customers.
One main element of
commercialisation is the marketing mix which consists of advertising, sales
promotion, public relations, personal selling and direct marketing which helps
organisations to promote their products and services (Hughes & Fill, 2007).
This stage of the NPD process is the most expensive stage as it requires the
mass manufacture of the product and a large marketing campaign to the get
product into the public domain (Kotler and Keller, 2012).
Examples
One sporting example of the commercialisation stage being
implemented is in the case of Slazenger (2012) who launched their new products,
the V100 and the V12 bat at a popular and successful cricket store, Cricket
Asylum, in Halifax. As part of the commercialisation process Slazenger have
created a full product range based around the bats, they advertise them using YouTube
videos and also by the sponsorship deals they have with major players such as
Jacques Kalis of South Africa. Slazenger (2012) focus on the technology the
claim to have implemented in both bats including shock reduction, grip
technology, TAS inserts to increase shot stability, and taper toe to improve
stance. This is part of their strategy to make their products seem more
advanced than the products of competitors.
Another sporting example of the commercialisation stage is Adidas’
adipure 360 training shoe targeted at ‘top’ male and female athletes (Adidas,
2011). The benefits are unrestricted foot movement and flexibility as
emphasised with the implementation of individual toe slots. The trainer is marketed
within the ‘Performance Essential Collection’ and is manufactured and
distributed through a fully integrated never-out-of-stock business model.
My Product – The Cone King
Aspects of the commercialisation of ‘The Cone King’ rely on
the results of the test marketing and other market research. If the product
launch was successful in the target cities of Leeds, Newcastle and Birmingham
then a similar strategy of local advertisement and direct selling would be
adopted. The website for the cone king would be fully operational for online
purchasing and targeted online adverts would be used based on consumer searches
on google and other websites. This would mean that only people with an interest
in sports products and coaching would see the adverts for my product and therefore
money would not be wasted from the limited marketing budget. The same design
and colours would be kept and used throughout any future product range as it
makes the product distinguishable and these colours and designs would also be
used on any advertisement and packaging.
Whilst this product is launching into
a highly competitive market it will succeed due to the innovative nature of the
product and the targeted marketing campaign aimed at grassroots coaches who
wish to better their performance.
References
Adidas. (2011). Group Management Report. Available: http://www.adidas-group.com/en/investorrelations/assets/agm/2012/LB_2011.pdf.
Last accessed 01/02/2013. (Accessed on: 05/02/2014)
Hughes, G &
Fill, C. (2007) ‘Redefining the nature and format of the marketing
communications mix’, The marketing review, 7(1), pp.45.
Kotler, P. and
Armstrong, G. (2012). Principles of
Marketing.14th ed. London: Pearson.
Kotler, P.
Keller, K. (2012) A Framework for
Marketing Management. 5th Ed. International Ed. Pearson Education Limited,
Harlow.
Lamb, C., Hair,
J. and McDaniel C (2009) Marketing. 11th
ed. Stamford: Cengage Learning.
Mu, J & Di
Benedetto, A. (2011) ‘Strategic orientations and new product commercialization:
mediator, moderator and interplay’,R&D Management, 41(4),
pp.337-359.
Slazenger (2012)
Slazenger 2013 Product Launch [online]
Available at: https://www.youtube.com/watch?v=es7cZ0k_nL0
(Accessed on: 05/02/2014)
