Technology advancement is a significant contribution to economic growth, as it transforms society’s way of living and working. This article explores some of the concerns that influence consumer purchasing behavior, as well as some issues that impact consumers’ buying decisions. Then it provides examples from different cultures to support those points.
In every marketer’s mind, new product development is a priority. The new product should meet the needs of the consumers and have an effective marketing strategy so that customers can accept it from different cultures. To ensure this, some factors need to be considered when developing a new product.
Offering convenience and availability:
Different products or services have different characteristics. While some products are simple and need little maintenance, other products require the consumer to dedicate a significant amount of time and material to be used efficiently.
For example: ‘Kleenex’ brand tissue is very convenient and easy to use since it needs no water or washing machine. However, for an electronic device such as a laptop, the consumer has to think more of its maintenance and availability for spare parts.
Choosing a targeted market:
Marketers need to consider the demographic (e.g., age, income, etc.) and psychographic (e.g., personality, values, attitudes, interests) characteristics of the potential consumers before launching a new product in the market. These factors will help marketers identify the targeted market.
For instance, when Pepsi started selling diet Pepsi, it directed its advertisements toward women since they were the primary target consumers for diet products. However, when Coca-Cola introduced Coca-Cola Zero in 2004, it made its advertising campaign more inclusive by focusing on men and women of all ages.
Selecting the price:
When setting up a new product’s price, marketers need to consider both internal and external factors. For example, it is more likely that the marketing department will set its initial price point higher than its expected profit margin for an established brand.
This helps keep competition away from the market. On the other hand, a new product from an unknown brand usually has no choice but to keep its initial price low. If the marketer makes any mistake in setting the price, it will be difficult for customers to accept that product later on. In addition, if a product is too expensive for customers, they will not buy it. However, in case of a discount or promotion, customers may be motivated to purchase the product.
Offering effective customer service:
In today’s highly competitive market, marketers need to provide their customers with high-quality services such as on-time delivery and good customer care response. This will not only prevent dissatisfaction among customers but also increase their loyalty to the brand.
For example, in 2003, when Starbucks launched Via instant coffee, it announced a 1-minute response time for any customer enquiries. Later on, its customer service improved by allowing customers to spend $1000 or more to get premium membership.
Effective distribution channels:
Distribution channels enable marketers to sell their products efficiently. Besides offering convenience to customers, distribution channels need to deliver the whole range of products and services while maintaining good relationships with suppliers and clients.
For example, in 2006, Tesco provided its online shopping service through ‘Tesco Direct’. This enabled the supermarket chain to increase its profit margin and efficiency while expanding its product line. On the other hand, Apple’s iTunes store is an online music market that allows customers to purchase and download songs, movies, TV shows, games, apps, etc.
Developing clear strategies:
Marketers need to develop clear strategies of how they will deliver their new product or service before bringing it to the market. Marketers should also create a list of possible risks and how these can be overcome. For example, if the product is substandard, it needs to have excellent after-sales service. Other potential risks include pricing issues, branding problems, etc.
New product development is a complex process of combining creativity, research, and technological innovation. It requires both marketers and R&D managers to work closely together to find new ways to satisfy customers’ needs.
One common mistake that some marketers make is to look at the ‘big picture’ without considering any details or specifics. Therefore, before marketing managers develop new products for their clients, they need to gather as much information about the market as possible.
Additionally, marketers need to consider external factors such as political, economic, social, and technological aspects before developing a new product. If companies fail to take these factors into account, it will be difficult to survive in the market.
Finally, marketing managers need to keep in mind that their product will only be successful if it can provide high value for customers. Therefore, marketers should listen to their client’s feedback and learn from them before coming up with new products or services.