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New Products, Foreign Markets, and Market Segmentation

1. New product development: What is the most important thing to consider in new product development? Why? Why is it necessary to evaluate the new product idea at each and every stage of the development process? How can marketers best promote consumer adoption of a new product?

2. Foreign markets: What are some factors companies need to consider before attempting to enter foreign markets? If you were to set up a market program for a product in a foreign country, what should you take into consideration? What advertising strategy would you develop for the promotion of a new product. What are some things you should consider?

3. Differentiate brand extension from line extension Please identify a recent (1) brand extension and (2) line extension that you have seen and discuss the effectiveness of that brand. How could you maximize the odds of creating that effectiveness for each extension as a marketer?

4. Please choose an organization: e.g. Apple, Microsoft, Nike, etc. and discuss the market segmentation within that industry. Also discuss the target market of the selected company and the selection process for that target market. Please include the following:
- demographics, psychographic, geographic, behavioural characteristics for the target market for the selected company
- a positioning statement for the company with careful consideration of their brand and strategy
- demonstration of understanding of market segmentation for the selected company
- apply an understanding of customer behaviour to determine target market
- demonstrate an understanding alignment between company strategy and marketing decisions.

Solution Preview

1. There are several factors to consider when developing a new product. The user-driven factors must be taken into consideration, such as for whom the product is being designed for, identifying the consumer needs, and having an understanding of the context of use. These consumer-driven factors are what can make or break the development of a product. It will be necessary to evaluate the new product idea at every stage of the development process. This is important because when you are introducing a new product you must determine whether the product meets the perceived needs of the consumers. You must also study the competition's products to measure whether their product or services is superior to yours. Also, consider whether the market is saturated with products similar to the one you are developing. When you study your prospective competitors, certain questions you must consider: how does my product measure up, how does it stand out, and is it different or unique? Marketers can best promote consumer adoption of the new product by bringing awareness, interest, evaluation, trial, and finally adoption. The product must facilitate movement through these steps. The marketer must recognize the characteristics of the adoption process, such as the "differences in organizations readiness to try new products; the effect of personal influence; differences in individual readiness to try new products and differing rates of adoption (Rao, 2007).

2. Before attempting to enter a foreign market you must get the entire company committed; define the business plan and determine what you can invest. You will also need to conduct many researches in order to identify the target markets. There are several things to take into consideration when setting up a market program in a foreign country. As a company starts to expand globally, especially through joint ventures or franchising, you must be aware of certain factors to consider:

Language Barriers: It can be difficult to translate your marketing and operational materials into a language that is understandable by the new country (Sherman, 2014). This task might seem simple but if the language that differentiate your idea or marketing strategy approach are not easily understood in the host country's language, you can run into difficulties.

Marketing Barriers: Market barriers can occur when your set marketing strategy falls short of in other countries. It is important to understand the marketing cultures and be able to adapt.

Legal Barriers: Certain types of ventures are especially hard to set up in a new country. Before entering a new market, it is important and a must to check the tax laws, import restrictions and customs regulations (Sherman, 2014).

Government Barriers: Not all governments are receptive to foreign investments. Prior to making any business commitments, you should look at government restrictions, tariffs, and any limitations on currency repatriation (Sherman, 2014).

Advertising: It is a way of persuading potential customers to pick your product over others. Media is the most commonly used form of advertising. The advertising strategy that we would use is media. There are many media options available and selecting the right combinations is key to reach our intended consumers.

3. Brand extension and line ...

Solution Summary

This response looks at new product development, the processes to enter foreign markets, and the concept of brand extension.