Nobody knows how people react to new products.

 

One thing that causes uncertainty in new products is uncertainty. Nobody knows how people react to that product. And another thing is how many people will buy that product? 

Sometimes even the known company and very big campaigns are not bringing customers who are willing to pay for the product. And without sale, all money and time. 

That is put into the R&D process is just a waste of time. Even if some free applications like Twitter are a very big success as freeware doesn't mean that people are willing to pay for them. 

That means that free software can be very popular. But nobody wants to buy about the use that kind of tool. In this case, that company will bring some products to markets. There are two big problems. 

*How to predict sales? And make sure that people are interested in the product. The main question is how to make people buy the product. Interest is not enough. The thing that is enough is the sales. 

*And the second main question is how to price the product. If the product is too cheap. People suspect its quality. If the price is too high, people think that product is too expensive. 

The main thing in business is how to make people look at a product. If people are not even looking at the product they cannot buy it. There must be something that makes interest for the product. And then something must cause the need to buy it. 

When companies are making products, they want to sell them. Without sales is no company. The company wants compensation for the time and money. That is put into the product's R&D process when it brings the product to shelves. If the product doesn't please customers the entire R&D process is only a waste of time and money. 

This is the fact in all products. The physical products or SOAP (Service Oriented Application) have similar problems. The customers are accumulating to well-known actors. 

The big size, large marketing capacity, with large networks of customers and recommenders are accumulating people to those actors. The "Accumulation theory" by Karl Marx still lives. The accumulation theory goes like this. 

The capital accumulates in the hands of wealthy actors. But the reason for that was unknown in the lifetime of Karl Marx. The reason for that is that people. Who have lots of money or capital are hanging with other wealthy people. Many times those wealthy people are in the leading position in their companies. 

And that allows a good social environment to offer also new products. The person who knows some other leader can make offers more freely than some outsider who must ask the audience. And if those people are meeting at dinners or free time. They can discuss the product unofficially before the buyer introduces those products to people with the same rank as that director.

And the internet version of the accumulation theory goes like this: when some company has a large number of customers. That accumulates customers to that company. 

The thing is that a large number of customers is bringing more customers. 

The customers must buy those products. And they pay money for that. That means customers don't want to try multiple products before they decide do they want to buy the product.  So most of the customers choose the well-known product and producer. 

So the well-known offerers of the products are more popular than some start-ups. They have an existing network of customers and recommenders. That means the customers and capital are accumulating in well-known actors' hands. This sad thing makes the internet and its products accumulate in the hands of smaller groups of actors. 

https://brandproductandmarketing.blogspot.com/

The open source R&D (Research and development)

The open source R&D (Research and development)

Using open source productions and sources in the R&D process is a very good thing for developing. The open source can give very much data and large basement for the developing team, and the thing in this way to work is to operate is actually very effective in the financial way of the view. That means that the books how to make codes and other things can lend from libraries, and in the modern time, you can also read that material from the Internet.

The idea of the innovation process is to refine the things, what comes in the imagination to the product, and that will be a long process, but as we see, the thing would give gold and glory for the company or the team, however, we call this environment. In this case, all team members must think, that there is a goal, what must be reached. If we want to create innovations, we must remember in that process, we must be open for every idea, what we can get in the process. And in this case: we should collect every data or information or knowledge about the thing, what we would like to innovate or transform into the product.

This is one way to think about the development process, which gives great innovation in modern time. The thing is that the knowledge, what means the storage of information or data, is the thing, what is forming or accumulating to the product in the process, what is known as the developing process, where the new products are forming. The accumulation is that knowledge is acting like a cloud.

The mass of knowledge is growing during the process, where the product or merchandise is forming, and the question is, why we should pay for some product if we can get the free one? The idea is making a very effective focus on the innovation process and that means that at least at the beginning use of the free products in that process would give the ability to focus on the product. And when the product is smoothed the more sophisticated and exquisite tools and methods would be used when the process is going farther.

But at the beginning of the process would be reasonable to make things with cheaper tools, when the first wireframes of the product are in the modeling stage because it would help to keep the project secured, and away from the eyes of the competitors. The thing is that during the process, there would be many things, what must be done before the product would become something, what can be even introduced for patent officials. And the thing is that there is a long way from patents to commercial solutions. In this process is not information, what has no mean. In the schools, I have sometimes heard things like "we can buy the product".

The thing is that there are two types of corporations the corporations, what builds the product, and the corporations, what are selling those products to the customers. The name of the last ones is normally "supermarket", and the first one is called as the "factory". The knowledge, what those operators need is a little bit different. The last one needs knowledge, how to put products in the shop.

And of course, the new products are always needed for making the place interesting. The producer wants the product, what it can sell to the resellers. In this process, the own, self-made product is the thing, what gives freedom for the producer to make contracts. If the producer would sell a product, what is made by some other actor, that would mean, that it should pay licenses to the actor, which owns the copyrights of the product. The idea of the franchise business is this.

There is the engineering office or company, which makes products and sells the licenses for producers. One of those actors is European Nissan, which makes cars, which are planned in Japan. And the same idea is in many hamburger and pizza restaurants.

They will sell products, which are innovated in some test kitchen, and the list of products and commodity are coming from certain places. In fact, Nissan has been copied the idea to produce automobiles in Europe from the hamburger restaurants, and the same idea is used in the production of the electronic components and cell phones. The engineering corporation is selling the license for the production to the Far East, but the problems are that this kind of products has the export limitations outside the EU.

The production of those merchandise near the customers is really interesting and the cargo prices would be lower, if the product, what is sold in Shanghai are also made in that area. This is the idea of this kind of production. The low shipping costs would decrease the price of the product and help the local resellers make more benefits and sell the products to the people at a lower price than if the products are made in somewhere else.