New Products, Foreign Markets, and Market Segmentation

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 ...