The management of new product development involving electronic and computer-oriented consumer and systems products is a special case because of the challenges created by high technology and complex systems. There is a big project risk involved as the whole project might fail and make a huge loss for the investors, even if the product performs as designed in development. These factors are external to the project team-in the company organization and culture or in the global marketplace. They are often missed by the technical and engineering personnel in the project because of the tendency to fix narrowly on the product itself and its design and function,

And not on the company’s success in getting it successfully to the market.

But while designing my new product, I have devised a totally new platform for artificial intelligence by which a computer can think and feel like a human being, this will help marketing as such because it has psychographics which

Can devise which product should be kept with a certain product like milk should be kept with corn flakes, because people would like to buy them together as they are consumed together, to tell us what human beings are thinking while purchasing products and their buying habits.

IBM WILL DEVELOP A COMPUTER THAT WORKS AS A HUMAN BRAIN

IBM is carrying out a project focused on developing a computer that would work as a brain, so it  can solve problems by considering the real context. This type of technology is called “Cognitive computing”. It will require the combined work of neurobiologists, computer and materials scientists and psychologists. In order to develop the project, we will have to invest millions of dollars in this type of project because it requires all types’ scientists. The mind has an amazing ability to integrate ambiguous information across the senses, and it can effortlessly create the categories of time, space, object, and interrelationship from the sensory data”. There cannot possibly be a remote chance of a computer that can even remotely approach the remarkable jobs the mind performs. The key to cognitive computing is to engineer mind-like intelligent machines which can think for itself. This can be done by reverse engineering the stricture, dynamics and function of the brain.

This product can revolutionize the market in its application; it integrates the idea of a neural network, a series of events and experiences the computer organizes to make decisions. It helps the computer to make an informed choice, and potentially to work around a problem just like the human brain does. For example if a cognitive computer is fitted inside an airplane, it can operate the airplane under normal circumstances, but it cannot handle crises,

SEGMENTATION OF THE MARKET

Market segmentation is a strategy that involves dividing a larger market into subsets of consumers who have common needs and applications for the goods and services offered in the market. These subgroups of consumers can be identified by a number of different geographic locations, depending on the purposes behind identifying the groups. Marketing campaigns are often designed and implemented based on this type of customer segmentation.

In this case we can segment the market by the age group of the people who will be using the end product; this type of computer will be mostly used by the older group of people who understand what is nanoelectronics and its applications. Each market will have its unique needs and wants and will have its unique demand curve, each segment needs its own marketing strategy and marketing plan, it increases costs in the short run but these are genrallt ifset by increased sales in the long run, segmentation can be

Geographic- country, region density

Demographic- age, sex education

Psychographic-class, personality, lifestyle

Behavioralistic-usage rate, readiness, brand loyalty

SELECTION OF TARGET MARKET

Target Marketing involves breaking a market into segments and then concentrating your marketing efforts on one or a few key segments.

Target market is the opposite of mass market, which recommends a solo product to the complete market. The most important factor while considering a target market will be the attractiveness of that market.

charisma of a market segment

Number of the features that must be measured when assessing the beauty of a target market, size of the segment, growth rate of that segment, competition in that market, brand loyalty of the customers present in that market, the market share that is attainable given advertising budget and competitions advertising budget, sales potential for the break even of the investment of the investors in the company, while market research and study is influential in acquiring all this data, it is not completely dependent. It should be noted that larger markets would have more competition hence there cannot always be more profitable.

Market segments should also be evaluated on the suitability, as how they fit the company’s aim, funds, and potential, some of the features that would include in this study are, weather the company can give better value to the clients in that sector for example the extra eye-catching the market segment, the more the revenue prospect to the business.

There are many target market plans, aiming can be regularly considered as one of the subsequent, determined segment strategy-this is often the strategy for small companies with limited resources. Full coverage to market –

The company tries to supply the whole market. This can be achieved by a collective market plan in which a sole undifferentiated marketing mix is obtainable to the complete market. Or by a different strategy by which a divides marketing mix is presented to every market.

DIFFRENTAITION AND POSITIONING OF THE OFFERING IN THE CUSTOMERS MIND

In marketing product differentiation is the process of distinguishing a product or offering from others, to make it more attractive to a particular target market. This involves differentiating it from the competitor’s products as well as ones own products.

Differentiation in quality is what IBM will be aiming for in this product as this product will of superior quality and design which will give IBM a competitive edge over other companies which plan to launch such a product in the future.

Positions are described by variables and within parameters that are important to IBM’s customers. Common examples would be price, supporting services, quality, reliability and value for money. Often the customers of a certain product position the product in relation to a brand that is especially visible to them; the number of variable is usually low, most often they can be described with a two or three dimensional matrix, this tool to visually depict customer’s perceptions is called perceptual mapping

Basically product positioning strategies can be related to, product attributes, benefits offered, price. Quality, application, user categories. The message should be clear and consistent; the message has to be believed, it should have a benefit that the competitors product does not have

There are common mistakes in positioning- consumers like under positiong and confusion-consumers are unclear how the barnd compares with rival offerings

REPOSTIONING

Repositioning is important to extent the product life cycle, to move into a new market segment, for example-the brand evolves over time.some examples would be-product repositioning, intangible repositioning, tangible repositioning

TESCO-they successfully repositioned and moved up market

Johnson and Johnson- originally aimed at the baby market but now aimed at adults as well

MARKETING OBJECTIVES

Short term targets for milestones with defined measurable achievement.

For example if IBM is planning to get over a million units of sale in this particular year, then objectives should be defined in such a way

That actual performance can be compared with the objective.

A MARKETING MIX FOR THE NEW PRODUCT OR SERVICE

Product

The product is cognitive computing and the product is new and never has been introduced in the market, it is highly useful to marketers to understand

Market psychology. IBM has experience in product development they have been developing products since the 19th century. Hence they can surely market this new product to the public with efficiency and generate profits in a

Few years after recovering the initial investment

Price

The price would be based on development costs plus profits, in this case its very important as the product has to be mass marketed. Initially to promote the product we can undertake promotional pricing, the calculation of costs should be carefully undertaken for profit maximization, this can be done by maximizing the number of units sold by decreasing long term costs .

RECESSION-in times of recession an market decline, the goal may be cover costs that can permit the firm to remain in the market, in this case survival may take priority over profits, so this objective is considered necessary, but nevertheless temporary

There are many types of pricing strategies that can be followed to market this particular product, initially we can follow penetration pricing, which would enable us to get a market share by keeping the price low and selling maximum units, but when we have a considerate market share we can shift the strategy to one which is more profitable

Place

The place is a very important factor which should be considered while selecting the place of launch as the this particular product is not so useful in developing countries and hence should be launched in a country such as America or England which does have the ability to purchase such high tech systems for a high price which can be put to good use. It is very important to set the right price since it will decide the amount of final sales.

Promotion

Promotion is the business of making the product popular. It will provide information that will assist them in making a decision to purchase a product or service. The razzmatazz, pace and creativity of some promotional activities are the most important of any business activities since it affects sales directly.

The cost associated with promotion or advertising goods and services often represents a sizeable proportion of the overall cost of producing an item. However, successful promotion increases sales so that advertising and other costs are spread over a larger output.

People

British organizations plans to relate for the Investors In People endorsement, which informs customers that employees treated good by the corporation and they are skilled to specific values. individuals are the most important aspect of any organization, people always buy products from the people that they like, hence all the people of IBM must be first class. Customer service can affect sales directly

Process

Banks those who give out Credit Cards mechanically when their clients old one has finished again they require an well-organized procedure to identify expiry dates and renewal. An well-organized facility that changes old credit cards will advance consumers allegiance and assurance in the company. Hence efficiency is our aim.

Physical evidence

Physical facts is an important element of the service mix, customers will try to make decisions based on their experience of the service condition which in return will have an impact on the associations perceptual plan of the service.

AN INDICATION OF THE COSTS OF THE MARKETING STRATEGY AND WHEN IBM SHOULD EXPECT A RETURN ON THEIR INVESTMENT

There is a strong opinion that costs of the projects would be above 10 million

Hence according to calculations which are based on profits over a period of time, it would take five years to get back the investment. We have learnt various methods in account, the best one of them all which is cost effective would be NPV, which means net present value, gives the closest time it would take to get back the total investment.