So how do you commercialize a product? Commercialization is the last stage of the production process of a product and this stage also has within its confines, advertising, and also sales production, both of which are forms of marketing a product.
How To Commercialize A New Product
What does it mean to commercialize a product? Commercialization is most often flummox with marketing or even advertisement but if you have a product you wish to commercialize, then it is imperative to know that commercialization has three major goals and they include;
1. It is involved with what is called a funnel, it requires that you explore many ideas or get two or more product that have the guarantee that they can be sustained for a long term period.
2. It has a stage by stage process and it stage has its own main goals.
3. It is important to involve stakeholders early and customers also.
Some questions can be raised when there is a proposed commercialization and some of these questions could include;
When to Launch your Product
Unfavorable market conditions can affect the commercialization of any product, some unforeseen circumstances like government policy and license approval can be the reason why the commercialization of a product is delayed.
Where to Launch
Deciding upon a preferred location can be difficult, you first need to research upon where there is high demand for the product you want to commercialize, or where you believe there will be a large market or better patronage for your product.
Capital and operational capacities of managerial confidence can be a determinant to your choice of location. Vendors with very little capital may decide to begin to commercialize their products in small but attractive cities that promise to be favoring their business, and on the other hand, vendors with a good capital could take their business national or even international if they could afford it.
The Target Market
Knowing your target market can help save a lot of money that would have been spend trying to sell to the wrong market. The ideal consumer group should consist of early adopters, heavy users and/or opinion leaders.
Top Product Commercialization Strategy
Before you start up any business, first there has to be an idea of the kind of business you want to venture into. This is mostly gotten from observations made or your interest as a human being. Whichever the reason in the process of commercializing your product, you need to be able to explain the basic concept behind your new product or service.
You should be able to elaborate on your idea, create a demonstration (this could be a prototype) complete internal and external testing and also be open to professional advice because it can be very helpful.
Your concept Proof
You need to be able to convince people through demonstration that your product is workable, meaning that you need to be able to proof that your product can truly meet the needs of people and serve them as they expect, giving them value for their money. This is very vital in learning how to commercialize a food product.
Proof of product Opportunity
This majorly is the consumer feedback. This can be gotten by either giving out sample products, then you do a market research. It is through this process that you find out the reaction of the market so to say to your products this will in turn determine if there is need to withdraw the products from the market and look for other ideas or to improve the product quality.
The customer feedback is majorly for the development of your products/ services. It also helps determine if the development of the product is complete and ready for use, finally it determines if the product is ready for commercialization and can absolutely meet the demand.
Intellectual property (IP)
This is the stage where you legally protect your intellectual property. You need to lodge a patent to protect it or a copyright could also be handy. You will need to launch a trademark application that will serve as protection to your IP.
Research your market and do a financial evaluation
You need to find out if your product/service to be selected meets a need somewhere and also has a competitive advantage and also evaluate its financial viability. At this stage you go through the findings of your market research to find out
• If your research has identified market size, key players and potential customers
• If there is clear need for your product/service.
• If your product/service has a competitive advantage
• If you have scoped a previous business model and identified options to be researched
This is the last stage and in this stage what you do is mainly financial projections, accounting etc. you have to make sure in this stage that your funding is in place to support setup costs and working capital.
You also need to find out and make sure that your business model is finalized based on market research and financial investments.
Finally you make sure that your financial, accounting and reporting systems are ready for the product commercialization plan and process. These are the practical steps to commercialize your business product.