Commercialization

AAA

DEFINITION of 'Commercialization'

The process by which a new product or service is introduced into the general market. Commercialization is broken into phases, from the initial introduction of the product through its mass production and adoption. It takes into account the production, distribution, marketing, sales and customer support required to achieve commercial success. As a strategy, commercialization requires that a business develop a marketing plan, determine how the product will be supplied to the market and anticipate barriers to success.

INVESTOPEDIA EXPLAINS 'Commercialization'

The process of commercialization is likened to a funnel. At the widest part are the many ideas that a company might have for launching a product. As the funnel narrows, the company weeds out ideas based on logistics and costs, consumer and economic trends, and feasibility. Commercialization is part of a larger feedback loop for a product, as the ultimate introduction of the product into the market may require adjustments to the process.

RELATED TERMS
  1. Distribution Management

    Overseeing the movement of goods from supplier or manufacturer ...
  2. Logistics

    The overall management of the way resources are obtained, stored ...
  3. Inventory

    The raw materials, work-in-process goods and completely finished ...
  4. Supply Chain Management - SCM

    Supply chain management is the streamlining of a business' supply-side ...
  5. Bottleneck

    A point of congestion in a system that occurs when workloads ...
  6. Supply Chain

    The network created amongst different companies producing, handling ...
RELATED FAQS
  1. What is the difference between product differentiation and price discrimination?

    Product differentiation and price discrimination are two strategies used in marketing and economics. Product differentiation ... Read Full Answer >>
  2. What are the key differences between marketing and advertising?

    The key differences between marketing and advertising are based on how each term defines a separate function in the process ... Read Full Answer >>
  3. How can a business determine its most effective value proposition?

    To determine its most effective value proposition, a company must make a purposeful effort to craft a unique value proposition ... Read Full Answer >>
  4. Why does an investor need to understand the click-through rate in the Internet sector?

    An investor needs to understand the click-through rate in the Internet sector because it directly affects the success of ... Read Full Answer >>
  5. What is a value proposition canvas and how is it created?

    A value proposition canvas is a graphic tool created to help a business map out the key elements about its products or services ... Read Full Answer >>
  6. How can small businesses manufacture demand?

    Small businesses can manufacture demand by both looking at the market for their product and service and by looking for ways ... Read Full Answer >>
Related Articles
  1. Insurance

    Working Capital Works

    A company's efficiency, financial strength and cash-flow health show in its management of working capital.
  2. Investing Basics

    Economic Indicators That Do-It-Yourself Investors Should Know

    Understanding these investing tools will put the market in your hands.
  3. Active Trading Fundamentals

    Operational Risk: A Must-Know For Investors

    This type of risk is often overlooked, but it can mean the downfall of a company - and its investors.
  4. Insurance

    Understanding Japanese Keiretsu

    The structure of major companies in Japan is steeped in tradition and relationships.
  5. Retirement

    The Evolution Of Enterprise Risk Management

    This growing sector can tell you a lot about the companies you are investing in.
  6. Investing News

    Cost-Free Connection Of Target Groups To Marketers

    ZipDial spotted a niche marketing opportunity in the area of “missed calls” and developed a business around it. Here is how ZipDial works and its benefits.
  7. Economics

    Explaining Brand Equity

    The value premium that a company realizes from a product with a recognizable name as compared to its generic equivalent.
  8. Personal Finance

    How WhatsApp Makes Money

    In short, WhatsApp makes money just $1 at a time.
  9. Personal Finance

    How Youtube Ad Revenue Works

    Many people make money off of their YouTube videos through ad revenue, but just exactly how does Youtube Ad Revenue work? Quite simply, it turns out.
  10. Personal Finance

    How Instagram Makes Money

    Like many big names in social media, Instagram started as a fun idea without a clear path to profit.

You May Also Like

Hot Definitions
  1. Expected Return

    The amount one would anticipate receiving on an investment that has various known or expected rates of return. For example, ...
  2. Carrying Value

    An accounting measure of value, where the value of an asset or a company is based on the figures in the company's balance ...
  3. Capital Account

    A national account that shows the net change in asset ownership for a nation. The capital account is the net result of public ...
  4. Brand Equity

    The value premium that a company realizes from a product with a recognizable name as compared to its generic equivalent. ...
  5. Adverse Selection

    1. The tendency of those in dangerous jobs or high risk lifestyles to get life insurance. 2. A situation where sellers have ...
Trading Center