Day 61 Merchandise commercialization

Merchandise commercialization

How do we commercialize a product? Genuinely, it is not an easy question to answer. It involves both implicit and explicit factors that comprise the process of commodities the output. Therefore, if we want to produce a popular good or service and sell it in the market, we must maintain a clear strategy along the route. 

The most essential part is to develop the idea or theoretical model of the product. These ideas is a result from the accumulated fractals of highlights or the keen observation in our daily life. Nevertheless, it must be based on the demand of the market. In most scenarios, it is almost impossible or too costly for us to create a new demand in the market. Thus generally, we will focus on the existing demand only. Once a specific demand would be satisfied through using the product, it represents the application potential. However, if we want to proceed with the design, in order to turn the model into an actual product, it must show its commercial value as well. The commercial value, in other words, is the propensity the customer willing to pay for the product. Recalling as an individual business people, our ultimate goal generate profit from our activities. Although the product may have great application value, which will lead to the social optimal level of output. It will carry out nil motivation for us to produce a product that no one is willing to buy. In fact, this commercial potential is cogently affected by the application potential. The more satisfactory consumer derived from using the product, the more likely their reservation price will be greater than zero. Other elements such as substitutes and complements could also affect the commercial value. In conclusion, the concept should possess both two potentials, and we usually prefer the commercial value over than the other.

We will design the detail structure and resolve the technical difficulties after determination of the commercial value of the product. In this stage, we have to clarify the strategies in the future. For instance, the marking expansion plan, the management of the project operation, and the profit allocation schedule. We will concentrate on making more profit in this stage. Even though it is not worth it to create a fresh demand in the market, we can always stimulate the incentive of consumers. That involves various methods such as to convince the customer our product will generate the extra benefits for them, establish brand preference, or bind our product with other popular goods/services. As long as the extra gain received or felt by the consumer is larger than the reservation price, they will tend to purchase. Which is our core target, to sell more and earn more.

Even though the detailed implementation of the commoditization process is much more complex, the skeleton follows the same pattern.