Commercialization

What Is Commercialization?

Commercialization is the most common way of bringing new products or services to market. The more extensive act of commercialization involves production, distribution, marketing, sales, customer support, and other key capabilities critical to achieving the commercial outcome of the new product or service.

Regularly, commercialization happens after a small business has developed and scaled its operations and arrive at levels that allow it to arrive at a bigger market effectively. For instance, in the event that a small pastry shop is known for its cinnamon rolls and has sold them with great achievement, it can commercialize its products by selling the packaged cinnamon rolls to neighborhood supermarkets, where others can buy the cakes and the bread kitchen can increase its sales by different factors.

Understanding Commercialization

Commercialization requires a carefully-created three-layered product roll-out and marketing strategy, that includes the following major parts:

• The ideation phase
• The business interaction stage
• The stakeholder stage

The Commercialization Process

Many individuals view the ideation stage as the mouth of a funnel. Albeit numerous thoughts enter the funnel top, just a fraction eventually make their ways descending towards implementation. Ideation endeavors to create new products and services that fulfill unanswered consumer needs, and the most functional plans line up with the company's business model, by offering high benefits for minimal price.

The ideation stage endeavors to incorporate a marketing philosophy known as "The Four Ps," which represents product, price, place, and promotion. Frequently alluded to as the marketing mix, companies utilize this concept to determine the products to make, the price points at which to sell them, the customer base it wishes to target, and the marketing efforts it will roll out with an end goal to get merchandise off racks.

For a likely product to be eligible for commercialization, research and development (R&D) efforts must message a degree of public value that might actually bring about increased profitability for the company. In the business cycle stage, contemplations are made in terms of feasibility, costs, and thinking through how a potential commercialization strategy could actually be rolled out.

That being said, the stakeholder stage is normally packaged in thinking through who target crowds and stakeholders for a commercialized product or service is. For commercialization to genuinely succeed, a company must fulfill the two its customer and stakeholder needs.

Selling New Products in the Marketplace

Licenses, trademark enrollments, and other legal measures must be embraced to safeguard a product's intellectual rights, before the product might be brought to market. Manufacturing might happen in-house, or it could subcontracted to outsiders factories. When a product line is complete, promotional efforts then bring awareness to the target market, which is gotten to through distribution channels as well as partnerships with retailers.

Despite the fact that businesses that produce, market, and convey products in-house will generally harvest higher profits since they don't need to share proceeds with intermediaries, they likewise expect greater liability with respect to production cost overages.

Highlights

• Commercialization is the most common way of bringing new products or services to market.
• The more extensive act of commercialization involves production, distribution, marketing, sales, customer support, and other key capabilities critical to achieving the commercial outcome of the new product or service.
• Commercialization requires a carefully-created three-layered product roll-out and marketing strategy, that includes the ideation phase, the business cycle, and the stakeholder stage.