netrashetty
Netra Shetty
Brightpoint, Inc. (NASDAQ: CELL) is a leading global communications technology firm that specializes in the distribution of wireless devices and in providing customized logistics services to the wireless industry.
Brightpoint had a 2009 revenue of $3.2 billion. With 3,269 employees and 25,000 customers in more than 25 countries, Brightpoint handled 84 million wireless devices globally[2] in 2009.
Brightpoint's services include distribution, channel development, product customization, E-Business solutions, and other outsourced services that integrate with its customers.
In both 2007 and 2009, Brightpoint was selected as one of America's Most Admired Companies by FORTUNE Magazine, ranking in the top 5 of the "Wholesalers: Electronics" category each year
Partnership: as simple as one plus one
One participant's goal is to ask marketing questions; the other participant is interested in answering these questions. This is the working partnership of product management and marketing research. The word partnership itself suggests a definition of two parties allied in a cause, working together toward one goal, in this case, a business goal. The partnership that develops depends upon the two independent parties understanding each other's needs and goals.
Communication: as simple as one on one
A major part in any partnership is communication. For communication to be successful, a definition of the needed information is critical. The problem definition must create a common understanding for both product management and marketing research.
In addition, the definition of product management and marketing research within a firm must be clear. Questions like, "Where is the focus of marketing research at our company?" "What is the core of the needed information?" "Is the focus on the marketing problem, or the research methodology?" must be answered.
To paraphrase an old saying, "You are only as strong as your weakest part." Another way of saying this is, "You cannot understand the whole picture if there is a lack of communication among your individual parts." If one participant does not understand the true focus of a marketing question, communication can become mixed. Weakness can occur in the product management/marketing research partnership when there is miscommunication or inappropriately defined terminology.
For a true partnership to be successful, we must develop an increased understanding and awareness of each other's needs, expectations and roles. Not only is there a need to define what marketing research is, but also to gain a full understanding of the role of marketing research. This is direct understanding between two interdependent groups, one on one.
Analysts don't just throw darts
Marketing research doesn't take "shots in the dark" at getting information. A question comes from product management, such as "Where do we want to be?" Then, marketing research provides the needed information to identify and fill the gap between where we want to be versus where we are.
Marketing research can become the business function that links the customer to the marketer through information. The major uses of the information are to identify and define marketing challenges, refine and check marketing actions, and monitor market performance.
In short, marketing research is not a reckless dart thrown at a board hidden by uncertainty. Rather it is a concise, streamlined dart guided to a board by the hand of product management. The board is not a vague pool of data, but rather the proper target data to answer the marketing questions facing the product team.
The role of marketing research
Defining marketing research does not offer an understanding of the role of marketing research. The role of marketing research can be broken down into 5 phases:
1. Specify the information needed to address the business issue at hand.
2. Design the method for collecting the information.
3. Manage and carry out the data collection process.
4. Check the data and complete an analysis.
5. Communicate the outcome and findings and make recommendations if appropriate.
These actions result in a strong partner ship between product management and marketing research.
Marketing problem vs. research methodology
The research process usually begins with the product manager needing an answer to an important marketing question. For example, "How will a new competitive product affect our brand?" If the analyst immediately begins to think of ways to answer the question using a research methodology, then he/she has neglected an important rule. In this case, the analyst overlooks the business issue. The important point here is that the views of the product manager and research analyst are usually different. The focus should always be on the marketing problem and not the research methodology.
Of equal importance, the product manager should understand that he or she needs to approach marketing research with concise business issues. He or she should avoid thinking about methodology. An example would be a product manager requesting "quick and dirty focus groups" as a way to answer a marketing question. In this case the product manager has put the methodology ahead of the business issue.
To form a comfortable partnership: subtle reminders
There are many necessary conditions for a true partnership between product management and marketing research to exist. This partnership must work from the perspective of both functions for a sense of equilibrium to exist.
Product management should provide the means for marketing research involvement in the marketing end of the decision process. For example, certain brand managers at Glaxo allow the marketing research analysts to participate in their staff meetings. This is done to guarantee the analyst is proactive about current business issues.
Marketing research is a service function with a true focus on customer (product management) needs. A true partnership is dependent on those in marketing having a genuine respect for marketing research's contribution to marketing decisions.
NEW PRODUCT DEVELOPMENT PROCESS
Historically, the new product development process has been conceived in discreet terms with a beginning and an end. Different companies and different industries may alter this seven-step process for different products, or the steps themselves may become blurred as companies become engaged in several stages at the same time.
The process begins with idea generation. For every successful new product, many new product ideas are conceived and discarded. Therefore, companies usually generate a large number of ideas from which successful new products emerge.
Idea screening, the second step, considers all new product ideas in the idea pool and eliminates ones that are perceived to be the least likely to succeed. Not only should the firm's manufacturing, technology, and marketing capabilities be evaluated at this stage, but also how the new idea fits with the company's vision and strategic objectives.
The third stage, concept development and testing, requires formal evaluations of the product concept by
Figure 1
New Product Development Process, Factors and Strategies
consumers, usually through some form of marketing research. New product ideas with low concept test scores are discarded or revised. While the Internet is making it easier to gather consumer data, there are limitations. As people get deluged with an increasing number of surveys and solicitations, it is possible that they will grow tired of helping marketers.
The business analysis stage is next. At this point the new product idea is analyzed for its marketability and costs. After passing the first three stages an idea may be discarded once marketing and manufacturing costs are analyzed, due to limited potential for profitability or commercial success. Throughout these four stages, the new idea has remained on paper with a relatively small investment required.
Brightpoint had a 2009 revenue of $3.2 billion. With 3,269 employees and 25,000 customers in more than 25 countries, Brightpoint handled 84 million wireless devices globally[2] in 2009.
Brightpoint's services include distribution, channel development, product customization, E-Business solutions, and other outsourced services that integrate with its customers.
In both 2007 and 2009, Brightpoint was selected as one of America's Most Admired Companies by FORTUNE Magazine, ranking in the top 5 of the "Wholesalers: Electronics" category each year
Partnership: as simple as one plus one
One participant's goal is to ask marketing questions; the other participant is interested in answering these questions. This is the working partnership of product management and marketing research. The word partnership itself suggests a definition of two parties allied in a cause, working together toward one goal, in this case, a business goal. The partnership that develops depends upon the two independent parties understanding each other's needs and goals.
Communication: as simple as one on one
A major part in any partnership is communication. For communication to be successful, a definition of the needed information is critical. The problem definition must create a common understanding for both product management and marketing research.
In addition, the definition of product management and marketing research within a firm must be clear. Questions like, "Where is the focus of marketing research at our company?" "What is the core of the needed information?" "Is the focus on the marketing problem, or the research methodology?" must be answered.
To paraphrase an old saying, "You are only as strong as your weakest part." Another way of saying this is, "You cannot understand the whole picture if there is a lack of communication among your individual parts." If one participant does not understand the true focus of a marketing question, communication can become mixed. Weakness can occur in the product management/marketing research partnership when there is miscommunication or inappropriately defined terminology.
For a true partnership to be successful, we must develop an increased understanding and awareness of each other's needs, expectations and roles. Not only is there a need to define what marketing research is, but also to gain a full understanding of the role of marketing research. This is direct understanding between two interdependent groups, one on one.
Analysts don't just throw darts
Marketing research doesn't take "shots in the dark" at getting information. A question comes from product management, such as "Where do we want to be?" Then, marketing research provides the needed information to identify and fill the gap between where we want to be versus where we are.
Marketing research can become the business function that links the customer to the marketer through information. The major uses of the information are to identify and define marketing challenges, refine and check marketing actions, and monitor market performance.
In short, marketing research is not a reckless dart thrown at a board hidden by uncertainty. Rather it is a concise, streamlined dart guided to a board by the hand of product management. The board is not a vague pool of data, but rather the proper target data to answer the marketing questions facing the product team.
The role of marketing research
Defining marketing research does not offer an understanding of the role of marketing research. The role of marketing research can be broken down into 5 phases:
1. Specify the information needed to address the business issue at hand.
2. Design the method for collecting the information.
3. Manage and carry out the data collection process.
4. Check the data and complete an analysis.
5. Communicate the outcome and findings and make recommendations if appropriate.
These actions result in a strong partner ship between product management and marketing research.
Marketing problem vs. research methodology
The research process usually begins with the product manager needing an answer to an important marketing question. For example, "How will a new competitive product affect our brand?" If the analyst immediately begins to think of ways to answer the question using a research methodology, then he/she has neglected an important rule. In this case, the analyst overlooks the business issue. The important point here is that the views of the product manager and research analyst are usually different. The focus should always be on the marketing problem and not the research methodology.
Of equal importance, the product manager should understand that he or she needs to approach marketing research with concise business issues. He or she should avoid thinking about methodology. An example would be a product manager requesting "quick and dirty focus groups" as a way to answer a marketing question. In this case the product manager has put the methodology ahead of the business issue.
To form a comfortable partnership: subtle reminders
There are many necessary conditions for a true partnership between product management and marketing research to exist. This partnership must work from the perspective of both functions for a sense of equilibrium to exist.
Product management should provide the means for marketing research involvement in the marketing end of the decision process. For example, certain brand managers at Glaxo allow the marketing research analysts to participate in their staff meetings. This is done to guarantee the analyst is proactive about current business issues.
Marketing research is a service function with a true focus on customer (product management) needs. A true partnership is dependent on those in marketing having a genuine respect for marketing research's contribution to marketing decisions.
NEW PRODUCT DEVELOPMENT PROCESS
Historically, the new product development process has been conceived in discreet terms with a beginning and an end. Different companies and different industries may alter this seven-step process for different products, or the steps themselves may become blurred as companies become engaged in several stages at the same time.
The process begins with idea generation. For every successful new product, many new product ideas are conceived and discarded. Therefore, companies usually generate a large number of ideas from which successful new products emerge.
Idea screening, the second step, considers all new product ideas in the idea pool and eliminates ones that are perceived to be the least likely to succeed. Not only should the firm's manufacturing, technology, and marketing capabilities be evaluated at this stage, but also how the new idea fits with the company's vision and strategic objectives.
The third stage, concept development and testing, requires formal evaluations of the product concept by
Figure 1
New Product Development Process, Factors and Strategies
consumers, usually through some form of marketing research. New product ideas with low concept test scores are discarded or revised. While the Internet is making it easier to gather consumer data, there are limitations. As people get deluged with an increasing number of surveys and solicitations, it is possible that they will grow tired of helping marketers.
The business analysis stage is next. At this point the new product idea is analyzed for its marketability and costs. After passing the first three stages an idea may be discarded once marketing and manufacturing costs are analyzed, due to limited potential for profitability or commercial success. Throughout these four stages, the new idea has remained on paper with a relatively small investment required.