Introduction

This chapter examines the strategic marketing aspects related to new-product development (NPD); discusses marketing strategies and plans; and explores pricing, promotion and communications, and distribution techniques. From an NPD perspective, the marketing objectives, strategies, and programs must fit the realities of the business environment and the expectations of the selected market segment(s). The formulation and implementation of the marketing strategies and action plans have to be in alignment with the entire NPD program. The approach is to create a marketing plan that is tailored to the specific requirements of the NPD program and that will lead to a sustainable position.

The marketing plan is not only dependent on the business situation but on the capabilities and resources of the organization. Marketing of new products requires nuances that are different from the marketing of established products. The process for determining the marketing requirements involves the same cognitive considerations as the creative process for conceptualizing, designing, and developing the product itself. Marketing requirements for a new product are fraught with challenges and uncertainties, especially for new-to-the-world products. The market requirements and the appropriate marketing methods may be substantially different from those used for existing products where well-established techniques have been tried and proven in the market. For new products, using standard marketing mechanisms may represent a shotgun approach toward reaching potential customers, risking high expenditures and low penetration rates.