Steps in Selection of New Career
In the modern competitive environment of rapid change in tastes and technology, a company cannot rely solely on existing products. Customers expect new and improved products from an entrepreneur.
New products, depending on new ideas, are the future of a business. Without a conscious flow of new products, the marketing system would probably die. There are various steps in the selection of a new business idea and they are discussed as follows:
- New Product Ideas
- Idea Screening
- Concept Development and Testing
- Business Potential Analysis
- Product Development
- Test Marketing
New Product Ideas
An attempt is made to visualize the product. An in-depth study may be undertaken to anticipate the features of the proposed product. Ideas may be contributed by scientists, professional designers, rivals, customers, sales force, dealers, top management, magazines, new shapes, surveys, etc.
A detailed list of new ideas about potential products is prepared and an earnest attempt is made to find out commercially viable products.
Under this step, a detailed investigation of various ideas is carried on. Those ideas that offer less scope or are not promising are dropped. Most promising and viable ideas are carried to the next stage for in-depth investigation and research.
Concept Development and Testing
All ideas chosen after preliminary screening are subjected to in-depth study. These ideas are developed into mature product concepts. An attempt is made to find out minute details of the ideas and resulting features of the proposed product.
Concept development and testing product ideas are undertaken keeping in mind the preferences of the consumers. Concept testing enables a firm to pick up the best product concept amongst alternative product concepts.
Business Potential Analysis
After packing up the best product concept, a detailed investigation is carried out to find out its market potential, gestation period, capital investment, and expected rate of return. The business potential analysis covers demand analysis, cost-benefit analysis, competition analysis, profitability analysis, etc.
Business analysis can help in finding out the soundness and viability of the selected product concept. The basic idea behind this analysis is to ascertain the viability and profitability of the proposed product.
After clearing business potential analysis test concrete steps are taken for giving practical shape to the proposed product. Product development decisions include the type and quality of materials comprising the product, the method of production, cost and production time requirements per unit, plant capacity, alternative sizes, and columns, name, trademark, and image sought, testing of the model product will provide the ground for the final selection of the most promising model of the proposed product.
According to Philip Kotler, “Test marketing is the stage at which the product and marketing programs are introduced into more realistic market settings.” Test marketing involves placing a fully developed new product for sale in one or more selected areas and observing its actual performance under a proposed marketing plan.
The purpose is to evaluate the product and test marketing efforts in a real setting prior to commercialization. Before launching a new product in the market, the producer is interested in knowing about consumer opinion so that a stable and accepted product is introduced in the market. A producer can get vital clues for product improvement and modification in the marketing mix.
Commercialization is the actual introduction of the product into the marketplace with all the related decisions and resource commitments. Under this step raw materials and component contracts are to be made with the suppliers, channels of distribution are to be selected, manufacturing facilities comprising of equipment, processes are set in operation, salespeople are hired and trained, advertising and other sales promotion efforts are initiated.
With commercialization, a product starts its introductory stage of the product life cycle. The search for a new product or business idea is a never-ending activity. An entrepreneur is required to monitor the new product through various stages of its life cycle. He has to keep his eyes and ears open to find new opportunities to be exploited to promote his business interests.
FAQs Section Steps in Selection of New Career
What are the steps in selection of new career?
The following are the steps in the selection of a new career in entrepreneurship:
1. New Product Ideas
2. Idea Screening
3. Concept Development and Testing
4. Business Potential Analysis
5. Product Development
6. Test Marketing