Editing Commercialization

{{short description|Process of introducing a new product onto the market}}
'''Commercialisation''' or '''commercialization '''is the [[business process|process]] of introducing a new [[Product (business)|product]] or [[Methods of production|production method]] into [[commerce]]—making it available on the [[market (economics)|market]]. The term often [[connotation|connotes]] especially entry into the [[mass market]] (as opposed to entry into earlier [[niche market]]s), but it also includes a move from the [[laboratory]] into (even limited) commerce. Many technologies begin in a [[research and development]] laboratory or in an inventor's workshop and may not be practical for commercial use in their infancy (as [[prototype]]s). The "development" segment of the "[[research and development]]" spectrum requires time and money as [[industrial engineering|systems are engineered]] with a view to making the product or method a paying [[commerce|commercial]] proposition. 

The product launch of a new product is the final stage of [[new product development]] – at this point [[advertising]], [[sales promotion]], and other [[marketing]] efforts encourage commercial [[early adopter|adoption]] of the product or method. Beyond commercialization (in which technologies enter the business world) can lie [[consumerization]] (in which they become [[final good|consumer goods]], as for example when [[computer]]s went from the laboratory to the enterprise and then to the home, pocket, or body).

== Process==
Commercialization is often confused{{by whom?|date=November 2016}} with [[sales]], marketing, or [[business development]]. The commercialization process has three key aspects:
# The funnel.<ref>
Compare: {{cite book
| last1 = Rafinejad
| first1 = Dariush
| chapter = 5: The Product Development Process
| title = Innovation, Product Development and Commercialization: Case Studies and Key Practices for Market Leadership
| chapter-url = https://books.google.com/books?id=dSATqILWWhwC
| series = J. Ross Publishing Innovation Series
| location = Fort lauderdale, Florida
| publisher = J. Ross Publishing
| date = 2007
| page = 160
| isbn = 9781932159707
| access-date = 2016-11-24
| quote = Wheelwright and Clark, Iansiti, and Christensen have discussed a 'funnel' framework for product development. In the funnel framework [...] the market/competitor analysis, target customer needs, and technology assessment establish the basis for concept development - the first phase of the process. The next phase is the product/process design, which leads to the product launch and commercialization phase.
}}
</ref> It is essential{{cn|date=November 2016}} to look at many ideas to get one or two products or businesses that can be sustained long-term.
# Commercialization is a stage-wise process, and each stage has its own key goals and milestones.{{Cn|date=March 2025}}
# It is vital to involve key [[Stakeholder (corporate)|stakeholders]] early, including [[customers]].{{Cn|date=March 2025}}

== Issues ==
Proposed commercialization of a product can raise the following questions:

# When to launch: Factors such as potential cannibalization of the sales of a vendor's other products, any requirement for further improvement of the proposed new product, or unfavorable [[economy|market conditions]] may operate to delay a product launch.
# Where to launch: A potential vendor can start marketing in a single location, in one or several [[marketing region | region]]s, or in a [[national market | national]] or [[international market]]. Existing resources (in terms of capital, and operational capacities) and the degree of managerial confidence may strongly influence the proposed launch-mode. Smaller vendors usually launch in attractive cities or regions, while larger [[company | companies]] may enter a national market at once.{{citation needed|date=October 2013}}<br />Global roll-outs generally remain the preserve of multinational conglomerates, since they have the necessary size and make use of international distribution systems (e.g., [[Unilever]], [[Procter & Gamble]]). Other multinationals may use a [[lead country|"lead-country"]] strategy: introducing the new product in one country/region at a time (e.g. [[Colgate-Palmolive]]).{{citation needed|date=October 2013}}
# Whom to target: [[market research|Research-]] and [[test marketing | test-marketing]] may identify a [[primary consumer group]]. The ideal primary consumer group should consist of [[innovators]], [[early adopter]]s, heavy users and/or [[Opinion leadership|opinion leader]]s. This will encourage adoption by other buyers in the market during the [[product growth|product-growth]] period.{{citation needed|date=October 2013}}
# How to launch: Prospective vendors should decide on an [[action plan]]{{cn|date=November 2016}} for introducing a proposed product - a plan shaped by addressing the questions above. The vendor has to develop a viable [[marketing mix|marketing-mix]]{{citation needed|date=October 2013}} and to structure a corresponding marketing-[[budget]].

==References==
* Jolly, Vijay K.(1997): Commercializing New Technologies: Getting from Mind to Market; Harvard Business School Press. [Note: a new edition was due in early 2009.]

== Notes ==
{{reflist}}

==Further reading==
* Clemens, F. et al. (2003): Xelibri: A Siemens Mobile Adventure; case study of WHU School of Management, Vallendar, Germany; distributed by ECCH Collection, England and USA.
* Dibb, S. et al. (2001): Marketing – Concepts and Strategies; Fourth European Edition Houghton Mifflin; Boston.
* Jobber, D. (2001): Principles & Practice of Marketing; Third Edition McGraw-Hill; London.
* Kotler, P. et al. (1996): Principles of Marketing; Fourth European Edition Prentice Hall; Harlow (UK).
* Lancaster, G. and Massingham, L. (1999): Essentials of Marketing; Third Edition McGraw-Hill; London.

==See also==
{{Wikiquote}}
*[[Commodification]]
*[[New product development]] 
*[[Technology Transfer]]


[[Category:Design]]
[[Category:Innovation economics]]
[[Category:Innovation]]
[[Category:Product development]]
[[Category:Product management]]
[[Category:Product testing]]