New product Essay Example | Topics and Well Written Essays - 500 words - 1

New product - Essay Example The first stage was the idea generation stage where various ideas were generated (Keiser and Myrna 75). The ideas were thereafter screened looking at the feasibility and the profitability of the product sales. The ideas that passed the screening test entered the concept development and testing stage. It is at this point that the ideas are stated in a manner that targeted consumers can understand. The concepts were then tested with a small constituency of the target market. Strong concepts that meet the target market expectation proceeded to the marketing strategy stage whereby the initial products are marketed among the target consumers. The next stage is the business analysis stage in which the sales and costs analysis is taken to determine whether they are in line with the company objectives (Keiser and Myrna 76). Since the magic cloth, met the customers’ satisfaction and was profitable because of the high sales rate. The costs analysis also showed that the economies of scal e would reduce the unit production stage. The final stage is the commercialization stage in which the product was launched officially for sale in the market. In setting the prices, the company considered the costs incurred in the production process and marketing costs (Keiser and Myrna 77). Other factory overheads and operational costs was also included in determining the total costs. After consideration of all the costs, a margin was set which would ensure that the targeted profit is earned. Besides, the price set was pegged on external factors like the prices of competitors. In the highly competitive industry, consumers are sensitive to prices and any overcharge could lead to loss of sales. Moreover, the demand also had an impact on the sales price. At times of high demand, magic cloth was sold at a higher rate compared to low demand period. Since the prices cannot be constant in a free market where competition is encouraged, there was ways in which the prices were adjusted. First,