Introduction
It is entirely important to do a thorough job in evaluation when a product is being developed. A lot of human and financial resource is put into place a product in the market. Not only so but a lot of time and energy is used in doing the same. Different methods are used in giving effective product evaluation. All these have their pros and cons. Generally, they can be categorized into two: Loose (summative) evaluation and tight (formative) evaluation.
Evaluation procedures
There are a couple of advantages that can be realized in using loose evaluation procedures. Some of these are that it sheds some light on the amount or degree of effectiveness that the product will bring to the company. This is because a lot of surveys are used in giving a summative evaluation. Its retrospective system of the process gives it an advantage since the management can have an easy time analyzing the evaluation thereof. A sample product can first be released to potential consumers, and an analysis of how well it does is done through which clear indications can be given as to whether to proceed or not.
On the other hand, tight evaluation has its advantages. It is more internally concentrated. It involved how much the stakeholders can achieve in making the product more market-friendly, yet fetch the maximum amounts of profit. This type of evaluation, therefore, is good in strengthening the quality of the product. It also strengthens the technology with which it was produced. More input is added to its production after a negative assessment is done and therefore the product ends up becoming one with a heavier standard of quality.
The one thing that is outstanding between these two evaluation methods is that more often than not, there is a cost one has to incur in carrying them out. A difference between these two is that the loose evaluation procedure may come much later, since it may involve external sources in giving evaluations.
Role of the internet in the new product planning process
One of the greatest resources that a product planner will want to have by his side is the internet. The vast amounts of information that it provides will out rightly become the product’s greatest advantage. With the introduction of the e-marketplace, the product manufacturer can be able to acquire the trends at which similar products to his are doing in the markets. Transactions are made directly on the e-marketplace and different products are always available as seen through different websites. Business partners are best found in the e- marketplace and will therefore give a new product planner the necessary information he requires in starting with his product. Liquidity of the market is increased through the internet and one can find greater strength in raising his implementation systems when they find themselves being the smaller team in the market.
Conclusion
In general, the internet plays an advantage to both strong and weak players in the market. One of the phases that receive the biggest advantage due to the internet will have to be the competitor analysis phase of the planning cycle. When planning one has to look into who and how well my competitors are doing. The internet gives an extraordinarily great amount of information about both. Competitors tend to expose themselves in the name of advertising themselves and reaching out to potential customers. A product manufacturer/ producer will take advantage of this and release a product that equates to his competitors or even outdoes his competitor. E- Planning is therefore playing a big role in the business world in these technologically infested days.