Page 335 - Foundations of Marketing

302 Part 4 | Product and Price Decisions

test marketing are greater speed, lower costs, and tighter security, which reduce the flow of
information to competitors and reduce jamming. Several marketing research firms, such as
ACNielsen Company, offer test marketing services to provide independent assessments of
proposed products.
Clearly, not all products that are test-marketed are launched. At times, problems discov-
ered during test marketing cannot be resolved. Procter & Gamble, for example, test-marketed
a new plastic wrap product called Impress in Grand Junction, Colorado, but decided not to
launch the brand nationally based on the results of test marketing.

Commercialization
During the commercialization phase, plans for full-scale manufacturing and marketing must
be refined and settled and budgets for the project prepared. Early in the commercialization
phase, marketing management analyzes the results of test marketing to find out what changes
in the marketing mix are needed before the product is introduced. The results of test marketing
may tell marketers to change one or more of the product’s physical attributes, modify the dis-
tribution plans to include more retail outlets, alter promotional efforts, or change the product’s
price. However, as more and more changes are made based on test marketing findings, the test
marketing projections may become less valid.
During the early part of this stage, marketers not only must gear up for larger-scale pro-
duction but also must make decisions about warranties, repairs, and replacement parts. The
type of warranty a fi rm provides can be a critical issue for buyers, especially for expensive,
technically complex goods such as appliances or frequently used items such as mattresses.
Tempur-Pedic mattresses offer a 90 -day , no-risk, in-home trial of their innovative mattresses.
If, after 90 days, the customer is not satisfi ed, the retailer will pick up the mattress for a mod-
est return fee. Establishing an effective system for providing repair services and replacement
parts is necessary to maintain favorable customer relationships. Although the producer may
furnish these services directly to buyers, it is more common for the producer to provide such
services through regional service centers. Regardless of how services are provided, it is impor-
tant to customers that they be performed quickly and correctly.
The product enters the market during the commercialization phase. When introducing a
product, a fi rm may spend enormous sums for advertising, personal selling, and other types
commercialization Deciding
on full-scale manufacturing and of promotion, as well as for plant and equipment. Such expenditures may not be recovered
marketing plans and preparing for several years. Smaller fi rms may fi nd this process diffi cult, but even so, they may use
budgets press releases, blogs, podcasts, and other tools to capture quick feedback as well as promote

Marketing Debate

The Success of a New Product

ISSUE: Will ultrabooks be able to compete with tablet Capital has also supplied funds to support innovation in
computers? ultrabooks.
The ultrabook does have advantages. Its processor is
Is there room in the market for another category of faster than those of netbooks, it has a battery life of 5 – 8
laptops? PC companies such as Acer have introduced hours, and it is less than 18mm thick. It is also a positive
ultrabooks, thinner laptops that weigh 2 pounds or less. alternative for those who want a lightweight computer with
With the use of the Windows operating systems, the a keyboard as opposed to a tablet. On the other hand, initial
differentiation of features on this product might interest sales have been low, and the price of the Ultraprocessor
those hesitant to purchase iPads or Mac computers. Intel chip has led to a higher price for the end-user.
b

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