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What challenges does a company face when developing new products in the global economy?

As a participant in the AIBC, you will have an opportunity to become a published writer at the end of the conference. AIU hosts a marketing publication, "The Marketing Scene," which provides a platform for professionals and consumers to discuss new ways of marketing, the effectiveness of advertising trends, specific ad campaigns and the impact this information has on our society." It provides a good starting point for this assignment. Some of the stories talk about the marketing of new products or the revitalization of existing ones.

Marketers must learn to do solid research in support of upcoming projects. The Unit 1 IP is a research paper and should address the following:

1. What challenges does a company face when developing new products in the global economy? Describe selected challenges using examples of at least 3 product/service launches. Resources MUST include articles from the library's full-text databases.
2. After having discussed the challenges of new product launches, how has technology assisted in the effort? Report on at least 3 situations in which technology supports the marketing effort. Resources MUST include articles from the library's full-text databases.
3. Legal and ethical implications loom large in today's business environment. Describe selected challenges using examples of at least 3 legal/ethical faux pas in marketing that hit the media. The Marketing Scene devotes a section to Controversy in Ads, which may give you some ideas for your research. Resources MUST include articles from the library's full-text databases.

The assignment requires the use of ARTICLES from the library's full-text databases. Articles are found in periodicals. These are not to be confused with eBooks or Reference Books. The most popular databases in marketing are: ABI Inform Global, Academic Search Premier, and Business Source Premier.

Your report MUST include a reference list. All research should be cited in the body of the paper. In-text citations and corresponding references should be included in your paper. For more information on APA, please visit the APA Lab. The paper should be written in third person; this means words like "I", "we", and "you" are not appropriate. The use of direct quotes is discouraged, but may be used sparingly in appropriate situations.

Your assignment should contain a cover page, an abstract page and a reference page in addition to the body. The body of the paper should be 5-6 pages in length - starting with a brief one paragraph introduction and ending with a short conclusion. The entire submission will be 8-9 pages in length.

Solution Preview

This paper requires an understanding of 'New Product Development' and 'Challenges of launching it in a Global Economy', which a Company faces in this process. Describe the role of technology in its support and legal & ethical implications in this matter. I am going to provide you a sample of these points.

Challenges Faced by Company in Developing New Products Development of new product is defined as the process of bringing a completely new product or service to the market. This process involves on the whole process of strategy, administration, generation of concept, creation of product and marketing plan, assessment and commercialization of a latest product. The present global economy is characterized by the spectacular changes in the patterns consumption and consumer, which pose a great pressure on the development of new product. Not only this, expansion in the international mega brand of products has also contributed a lot in imposing a burden on NPD (New Product Development).

The adoption of transfer, merger, acquisition and collaboration as a part of growing trend has forced the companies to lay emphasis on the process and management of the new product development. The major challenges in the new product development are in the field of innovation, R&D, marketing interface, suppliers, Technology development and transfer (Hood, 2007). There could be many challenges that hinder the development of new product in global economy. A company must do careful market research before unleashing a brand new product in the global economy. Launching products on an international scale can be extremely expensive. Some of the major challenges are discussed below:

Competition

The most significant problem that any organization could face is the competition because when a product is developed no matter at national or international level it has to face competition. Competition is every where at every stage a business, cannot judge its position without competition (Boone & Kurtz 2011). The actual position can be calculated when it is compared with other. Same is the case of new product development. When a new product is developed many other competitors were considered. Sometimes new launch becomes ineffective in front of others. Considering the strategies of competitor's proceedings, new product development should be made. This would help in overcoming the challenge (Boone & Kurtz 2011).

Research and development

The second challenge that is faced by the organization during a new launch is lack of research and development or if research and development does not carried out properly. Sometime marketing research conducted does not contain efficient or accurate data that lead to wrong interpretations thus turning up into a challenge for an organization. This problem is very dangerous for internal as well external growth of the company. Invention and innovation are mostly misinterpreted by many companies. Most of the companies consider innovation, as a part of merely finding a use for the invention (Hood, 2007).

Product line extension

Performing product line extension in such manner that it contributes towards huge profit generation is difficult as selection of small wrong decision can cause all profit margin go down.

Below are inherent challenges related with the innovation that impacts the new product development:

Inherent Technological uncertainty: Innovation involves uncertainty on the level of technology, thus merely commencing an innovation pursuit does not make certain ...

Solution Summary

The response addresses the queries posted in 1957 words with references, looking at concepts of research and development, product line extension and many of the challenges within product development.

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