Introduction

This chapter discusses and analyzes the pre-commercialization and launch of the new product. The Pre-commercialization Phase ensures that the required resources are available and that the commercialization game plan is ready to roll. The actual elements of the Pre-commercialization Phase vary from situation to situation; however, it generally involves finalizing the specific means to bring the product or service to the market. The major requirements typically include producing sufficient levels of the product so that it is available for distribution to the channels or directly to the customers, completing the marketing program elements, and committing the financial resources to the product delivery system and marketing communications plans. The Pre-commercialization Phase involves the transition from design and development, and validation, to the execution of the launch.

Not every new-product development (NPD) program needs an extensive Pre-commercialization Phase. In some cases the new product is ready for commercialization immediately after the Validation Phase. This is particularly true for services or software products that do not require significant production or inventory requirements. Similarly, it may not be required when the NPD program is rolled out in simple stages that minimize large commitments for inventory, marketing communications, or other longer-lead-time activities. Likewise, it is often not necessary if the introduction of the new product is being bootstrapped one stage at a time. However, the Pre-commercialization Phase is critical for large, complex programs with many elements that have to be timed perfectly at launch.

Commercialization of a new product varies considerably as well.